Trending stocks

Kokuyo Camlin reports 118% CAPEX growth in 2016 and 12.9% Revenue growth

12-05-2016 • About Kokuyo Camlin ($KOKUYOCMLN) • By InTwits

Kokuyo Camlin reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
  • Kokuyo Camlin is a growth stock: FY2016 revenue growth was 12.9%, 5 year revenue CAGR was 11.3% at FY2016 ROIC 4.3%
  • EBITDA Margin is quite volatile: 4.0% in FY2016, 3.2% in FY2015, 0.7% in FY2014, -1.2% in FY2013, 3.3% in FY2012
  • Kokuyo Camlin has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's a lot of higher than industry average of 3.1%.
  • CAPEX is quite volatile: ₹411m in FY2016, ₹188m in FY2015, ₹391m in FY2014, ₹142m in FY2013, ₹99m in FY2012
  • The company has potentially unprofitable business model: ROIC is 4.3%
  • It operates with high leverage: Net Debt/EBITDA is 1.3x while industry average is 0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.

Revenue and profitability


Kokuyo Camlin's Revenue jumped on 12.9%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 0.80 pp from 3.2% to 4.0% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2013 at -1.2% and was growing since that time.

Net Income margin showed almost no change in FY2016.

Investments (CAPEX, working capital and M&A)


In FY2016 Kokuyo Camlin had CAPEX/Revenue of 6.7%. Kokuyo Camlin's CAPEX/Revenue increased on 3.5 pp from 3.2% in FY2013 to 6.7% in FY2016. For the last three years the average CAPEX/Revenue was 6.2%. To fuel its fast growth the company made large investments to CAPEX (167% of EBITDA).

Return on investment


The company operates at low ROIC (4.3%) and ROE (2.4%). ROIC increased slightly on 1.9 pp from 2.3% to 4.3% in FY2016. ROE showed almost no change in FY2016. During the last 5 years ROIC bottomed in FY2013 at -7.6% and was growing since that time. During the last 5 years ROE bottomed in FY2013 at -12.4% and was growing since that time.

Leverage (Debt)


Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 4.0x. Net Debt / EBITDA surged on 1.4x from -0.1x to 1.3x in FY2016. Debt surged on 35.5% while cash dropped on 10.9%.

Kokuyo Camlin has short term refinancing risk: cash is only 90.3% of short term debt.

Valuation and dividends


Kokuyo Camlin's trades at EV/EBITDA 38.7x and P/E 175.1x while industy averages are 17.8x and 21.9x.

Financial and operational results


Kokuyo Camlin ($KOKUYOCMLN) key annual financial indicators

mln. INR201220132014201520162016/2015
P&L
Revenue3,8574,3844,7045,4396,14212.9%
EBITDA125-523517424541.4%
Net Income-1-151-7850524.2%
Balance Sheet
Cash14756570739659-10.9%
Short Term Debt41447853864173013.9%
Long Term Debt217413188258192.1%
Cash flow
Capex99142391188411118.2%
Ratios
Revenue growth7.4%13.6%7.3%15.6%12.9%
EBITDA growth-52.3%-141.7%-166.2%401.4%41.4%
EBITDA Margin3.3%-1.2%0.7%3.2%4.0%0.8%
Net Income Margin-0.0%-3.4%-1.7%0.9%0.9%-0.1%
CAPEX, % of revenue2.6%3.2%8.3%3.5%6.7%3.2%
ROIC3.6%-7.6%-2.4%2.3%4.3%1.9%
ROE-0.1%-12.4%-4.8%2.4%2.4%0.0%
Net Debt/EBITDA2.1x2.8x-0.1x1.3x1.4x

Peers in Non-Durable Household Prod.


Below you can find Kokuyo Camlin benchmarking vs. other companies in Non-Durable Household Prod. industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Eveready Industries India ($EVEREADY)--5.9%11.4%10.9%3.5%
Panasonic Energy India Company ($PANAENERG)5.5%11.4%8.9%6.2%-
Linc Pen & Plastics ($LINCPENQ)9.2%10.6%3.1%0.6%-
 
Median (3 companies)7.3%10.6%8.9%6.2%3.5%
Kokuyo Camlin ($KOKUYOCMLN)-13.6%7.3%15.6%12.9%


Top companies by EBITDA margin, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Panasonic Energy India Company ($PANAENERG)3.4%3.4%6.3%10.2%-
Eveready Industries India ($EVEREADY)4.0%6.3%7.9%9.7%9.1%
Linc Pen & Plastics ($LINCPENQ)3.8%5.6%7.5%7.7%-
Todays Writing Instruments ($TODAYS)----2.8%-
 
Median (4 companies)3.8%5.6%7.5%8.7%9.1%
Kokuyo Camlin ($KOKUYOCMLN)3.3%-1.2%0.7%3.2%4.0%


Top companies by CAPEX/Revenue, %

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Eveready Industries India ($EVEREADY)2.7%1.3%1.7%2.6%2.1%
Panasonic Energy India Company ($PANAENERG)0.4%0.8%0.1%2.2%-
Linc Pen & Plastics ($LINCPENQ)2.4%2.2%3.0%1.6%-
 
Median (3 companies)2.4%1.3%1.7%2.2%2.1%
Kokuyo Camlin ($KOKUYOCMLN)2.6%3.2%8.3%3.5%6.7%


Top companies by ROIC, %

Top 5 FY2012 FY2013 FY2014 FY2015 FY2016
Panasonic Energy India Company ($PANAENERG)---27.2%-
Linc Pen & Plastics ($LINCPENQ)6.6%12.5%16.6%16.3%-
Eveready Industries India ($EVEREADY)1.6%3.5%5.7%10.8%10.4%
High Energy Batteries (India) ($HIGHENE)11.6%10.0%-10.2%--
Todays Writing Instruments ($TODAYS)-111.5%-39.0%---
 
Median (5 companies)4.1%6.8%5.7%16.3%10.4%
Kokuyo Camlin ($KOKUYOCMLN)3.6%-7.6%-2.4%2.3%4.3%


Top companies by Net Debt / EBITDA

Top  FY2012 FY2013 FY2014 FY2015 FY2016
Eveready Industries India ($EVEREADY)8.2x4.1x2.5x1.8x1.6x
Linc Pen & Plastics ($LINCPENQ)4.1x1.9x1.4x0.7x-
Panasonic Energy India Company ($PANAENERG)-3.3x-2.4x-1.6x-1.5x-
 
Median (3 companies)4.0x3.0x0.7x0.7x1.6x
Kokuyo Camlin ($KOKUYOCMLN)2.1x-2.8x-0.1x1.3x


Similar news

12-05-2016 Arvind reports 10.4% CAPEX growth in 2016 and 7.6% Revenue growth

12-05-2016 Glenmark Pharmaceuticals CAPEX surged on 63.6% and Revenue surged on 15.1%

12-05-2016 Umang Dairies revenue started to decline in FY2016: dropped 24.8% vs. 16.1% growth a year earliner

12-05-2016 Lumax Auto Technologies Net Income dropped on 29.4% while Revenue increased on 8.1%

12-05-2016 Firstsource Solutions Debt dropped on 12.4% and Net Debt / EBITDA dropped on 0.4x from 2.5x to 2.1x