Shaily Engineering Plastics reports 47.2% EBITDA growth in 2016 and 25.5% Revenue growth
18-05-2016 • About Shaily Engineering Plastics (
$SHAILY) • By InTwits
Shaily Engineering Plastics reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Shaily Engineering Plastics is a growth stock: FY2016 revenue growth was 25.5%, 5 year revenue CAGR was 12.2% at FY2016 ROIC 18.2%
- The company has highly profitable business model: ROIC is 18.2%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is 1.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue jumped on 25.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.1 pp from 12.7% to 15.9% in FY2016.
Net Income margin showed almost no change in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 Shaily Engineering Plastics had CAPEX/Revenue of 13.0%. The company's CAPEX/Revenue jumped on 13.0 pp from in FY2013 to 13.0% in FY2016. Average CAPEX/Revenue for the last three years was 13.6%. Shaily Engineering Plastics invested a big chunk of EBITDA (74.9%) to CAPEX to fuel its growth.
Return on investment
The company operates at good ROIC (18.2%) and ROE (18.4%). ROIC increased on 3.0 pp from 15.2% to 18.2% in FY2016. ROE decreased on 3.1 pp from 21.5% to 18.4% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.5x and Debt / EBITDA is 1.7x. Net Debt / EBITDA dropped on 1.1x from 2.6x to 1.5x in FY2016. Debt decreased on 3.6% while cash jumped on 513%.
Shaily Engineering Plastics has short term refinancing risk: cash is only 24.8% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 14.0x and P/E 31.4x while industy averages are 17.8x and 21.9x.
Financial and operational results
Shaily Engineering Plastics ($SHAILY) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,456 | 1,223 | 1,508 | 1,797 | 2,255 | 25.5% |
| EBITDA | 209 | 170 | 242 | 265 | 391 | 47.2% |
| Net Income | 64 | 36 | 66 | 130 | 155 | 19.1% |
Balance Sheet
|
|---|
| Cash | 4 | 66 | 192 | 15 | 90 | 513.0% |
| Short Term Debt | 324 | 228 | 277 | 369 | 363 | -1.6% |
| Long Term Debt | 80 | 151 | 382 | 327 | 309 | -5.8% |
Cash flow
|
|---|
| Capex | 54 | | 162 | 309 | 293 | -5.2% |
Ratios
|
|---|
| Revenue growth | 14.9% | -16.0% | 23.3% | 19.2% | 25.5% | |
| EBITDA growth | 43.5% | -18.7% | 42.6% | 9.6% | 47.2% | |
|
|---|
| EBITDA Margin | 14.3% | 13.9% | 16.0% | 14.8% | 17.3% | 2.6% |
| Net Income Margin | 4.4% | 3.0% | 4.4% | 7.2% | 6.9% | -0.4% |
| CAPEX, % of revenue | 3.7% | | 10.7% | 17.2% | 13.0% | -4.2% |
|
|---|
| ROIC | 19.5% | 15.0% | 19.3% | 15.2% | 18.2% | 3.0% |
| ROE | 21.5% | 10.6% | 16.8% | 21.5% | 18.4% | -3.1% |
| Net Debt/EBITDA | 1.9x | 1.8x | 1.9x | 2.6x | 1.5x | -1.1x |
Peers in Plastic Products
Below you can find Shaily Engineering Plastics benchmarking vs. other companies in Plastic Products 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 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Astral Poly Technik ($ASTRAL) | 41.7% | 41.6% | 30.8% | 32.4% | - |
| Max India ($MAX) | 28.0% | 23.7% | 10.1% | 27.4% | - |
| Wim Plast ($WIMPLAST) | 27.5% | 23.1% | 19.5% | 23.5% | - |
| Acrysil ($ACRYSIL) | 11.3% | 29.6% | 33.8% | 19.4% | - |
| Fenoplast ($FENOPLAS) | 11.4% | -1.1% | 12.6% | 8.5% | - |
| |
|---|
| Median (11 companies) | 18.2% | 24.4% | 12.6% | 8.4% | - |
|---|
| Shaily Engineering Plastics ($SHAILY) | - | -16.0% | 23.3% | 19.2% | 25.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Acrysil ($ACRYSIL) | 12.4% | 16.8% | 17.5% | 19.5% | - |
| Wim Plast ($WIMPLAST) | 18.1% | 17.9% | 18.1% | 17.0% | - |
| Jain Irrigation Systems ($JISLJALEQS) | 16.6% | 12.6% | 12.6% | 12.4% | - |
| Responsive Industries ($RESPONIND) | 13.4% | 11.5% | 10.3% | 12.2% | - |
| Bloom Dekor ($BLOOM) | - | - | - | 11.8% | - |
| |
|---|
| Median (14 companies) | 11.7% | 11.2% | 11.1% | 10.7% | - |
|---|
| Shaily Engineering Plastics ($SHAILY) | 14.3% | 13.9% | 16.0% | 14.8% | 17.3% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Flexituff International ($FLEXITUFF) | 10.8% | 10.3% | 15.7% | 10.0% | - |
| Acrysil ($ACRYSIL) | 7.8% | 11.0% | 9.6% | 9.3% | - |
| Wim Plast ($WIMPLAST) | 14.3% | 8.1% | 3.7% | 7.9% | - |
| Astral Poly Technik ($ASTRAL) | 11.9% | 8.4% | 8.6% | 6.0% | - |
| Responsive Industries ($RESPONIND) | 14.7% | 10.3% | 6.9% | 3.8% | - |
| |
|---|
| Median (7 companies) | 10.8% | 8.2% | 6.9% | 6.0% | - |
|---|
| Shaily Engineering Plastics ($SHAILY) | 3.7% | - | 10.7% | 17.2% | 13.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wim Plast ($WIMPLAST) | 31.8% | 31.2% | 31.0% | 31.2% | - |
| Acrysil ($ACRYSIL) | 7.7% | 16.2% | 20.2% | 21.0% | - |
| Astral Poly Technik ($ASTRAL) | 29.3% | 31.1% | 33.3% | 19.7% | - |
| Max India ($MAX) | 8.9% | 24.3% | 7.0% | 12.7% | - |
| Jain Irrigation Systems ($JISLJALEQS) | 13.4% | 8.3% | 9.0% | 8.6% | - |
| |
|---|
| Median (21 companies) | 10.0% | 10.9% | 11.0% | 12.7% | - |
|---|
| Shaily Engineering Plastics ($SHAILY) | 19.5% | 15.0% | 19.3% | 15.2% | 18.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Flexituff International ($FLEXITUFF) | 2.2x | 3.1x | 4.3x | 5.3x | - |
| Jain Irrigation Systems ($JISLJALEQS) | 3.8x | 5.1x | 4.8x | 4.8x | - |
| Acrysil ($ACRYSIL) | 2.9x | 2.2x | 2.0x | 2.7x | - |
| Responsive Industries ($RESPONIND) | 3.3x | 2.9x | 2.4x | 1.9x | - |
| Astral Poly Technik ($ASTRAL) | 1.0x | 0.7x | 0.9x | 1.1x | - |
| |
|---|
| Median (14 companies) | 2.2x | 2.3x | 0.4x | 0.0x | 0.0x |
|---|
| Shaily Engineering Plastics ($SHAILY) | 1.9x | 1.8x | 1.9x | 2.6x | 1.5x |
