Anil revenue surged on 26.6% while EBITDA Margin decreased slightly on 1.2 pp from 17.4% to 16.2%
20-05-2016 • About Anil (
$ANILLTD) • By InTwits
Anil reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Anil is a fast growth stock: FY2016 revenue growth was 26.6%, 5 year revenue CAGR was 19.5% at FY2016 ROIC 15.5%
- EBITDA Margin is relatively stable: 16.2% in FY2016 vs. 17.4% in FY2015 vs. 18.1% in FY2012
- The company has highly profitable business model: ROIC is 15.5%
- It operates with high leverage: Net Debt/EBITDA is 4.2x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Anil's Revenue jumped on 26.6%. During the last 5 years Revenue growth bottomed in FY2013 at 9.5% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.3 pp from 9.3% to 7.0% in FY2016.
Net Income margin decreased slightly on 1.2 pp from 5.7% to 4.5% in FY2016. Net Income margin followed a declining trend at -0.73 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 8.5%. CAPEX/Revenue increased slightly on 1.8 pp from 6.7% in FY2013 to 8.5% in FY2016. It's average level of CAPEX/Revenue for the last three years was 8.4%. The company invested a big chunk of EBITDA (52.3%) to CAPEX to fuel its growth.
Return on investment
The company operates at good ROIC (15.5%) and ROE (15.8%). ROIC decreased slightly on 0.72 pp from 16.2% to 15.5% in FY2016. ROE decreased on 2.6 pp from 18.4% to 15.8% in FY2016. ROIC followed a declining trend in the last 5 years. ROE stuck to a declining trend at -3.7 pp per annum in FY2012-FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.2x and Debt / EBITDA is 4.2x. Net Debt / EBITDA surged on 0.2x from 4.0x to 4.2x in FY2016. Debt jumped on 24.4% while cash surged on 306%. Net Debt/EBITDA grew at 0.5x per annum in the last 5 years.
Anil has short term refinancing risk: cash is only 2.8% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 5.7x and P/E 5.4x while industy averages are 17.8x and 21.9x.
Financial and operational results
Anil ($ANILLTD) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6,447 | 7,060 | 8,249 | 9,691 | 12,267 | 26.6% |
| EBITDA | 1,166 | 1,194 | 1,414 | 1,691 | 1,989 | 17.7% |
| Net Income | 504 | 458 | 483 | 553 | 557 | 0.9% |
Balance Sheet
|
|---|
| Cash | 88 | 125 | 60 | 27 | 110 | 305.5% |
| Short Term Debt | 1,527 | 2,915 | 3,299 | 3,103 | 3,881 | 25.1% |
| Long Term Debt | 1,128 | 1,237 | 2,087 | 3,667 | 4,538 | 23.8% |
Cash flow
|
|---|
| Capex | | 470 | 430 | 1,117 | 1,041 | -6.8% |
Ratios
|
|---|
| Revenue growth | 27.9% | 9.5% | 16.8% | 17.5% | 26.6% | |
| EBITDA growth | 32.7% | 2.3% | 18.4% | 19.6% | 17.7% | |
|
|---|
| EBITDA Margin | 18.1% | 16.9% | 17.1% | 17.4% | 16.2% | -1.2% |
| Net Income Margin | 7.8% | 6.5% | 5.8% | 5.7% | 4.5% | -1.2% |
| CAPEX, % of revenue | | 6.7% | 5.2% | 11.5% | 8.5% | -3.0% |
|
|---|
| ROIC | 23.6% | 17.9% | 16.4% | 16.2% | 15.5% | -0.7% |
| ROE | 32.6% | 21.7% | 18.9% | 18.4% | 15.8% | -2.6% |
| Net Debt/EBITDA | 2.2x | 3.4x | 3.8x | 4.0x | 4.2x | 0.2x |
Peers in Specialty Chemicals
Below you can find Anil benchmarking vs. other companies in Specialty Chemicals 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 |
|---|
| Kiri Industries ($KIRIINDUS) | 7.9% | -86.5% | 24.8% | 34.7% | - |
| Vidhi Dyestuffs Manufacturing ($VIDHIDYE) | 14.1% | 4.7% | 19.5% | 30.0% | - |
| Keltech Energies ($KELENRG) | - | -13.4% | -0.4% | 24.4% | -6.3% |
| Dai-Ichi Karkaria ($DAICHI) | - | 31.4% | 45.4% | 22.8% | -36.4% |
| Nitta Gelatin India ($NITTAGELA) | - | 27.8% | -5.5% | 21.2% | -0.5% |
| |
|---|
| Median (27 companies) | 17.4% | 14.1% | 11.3% | 9.8% | -1.0% |
|---|
| Anil ($ANILLTD) | - | 9.5% | 16.8% | 17.5% | 26.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinati Organics ($VINATIORGA) | 21.7% | 21.8% | 22.7% | 24.9% | 32.8% |
| Indian Toners & Developers ($INDTONER) | - | - | - | 22.6% | - |
| Solar Industries India ($SOLARINDS) | 18.5% | 17.5% | 17.9% | 19.3% | 19.3% |
| Ultramarine & Pigments ($ULTRAMAR) | 18.0% | 15.5% | 17.4% | 17.2% | - |
| Camlin Fine Sciences ($CAMLINFIN) | 9.1% | 12.8% | 12.8% | 16.7% | - |
| |
|---|
| Median (32 companies) | 10.6% | 11.2% | 10.6% | 10.5% | 12.7% |
|---|
| Anil ($ANILLTD) | 18.1% | 16.9% | 17.1% | 17.4% | 16.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Adi Finechem ($ADIFINCHM) | 7.3% | 4.8% | 12.6% | 16.9% | 9.0% |
| Solar Industries India ($SOLARINDS) | 13.0% | 9.9% | 12.3% | 10.3% | 9.6% |
| Pidilite Industries ($PIDILITIND) | 5.2% | 2.9% | 4.4% | 8.5% | 3.8% |
| Oricon Enterprises ($ORICON) | 10.2% | 6.2% | 4.7% | 7.9% | - |
| Vinati Organics ($VINATIORGA) | 13.6% | 28.2% | 4.2% | 7.4% | 12.1% |
| |
|---|
| Median (16 companies) | 5.1% | 4.5% | 4.3% | 4.9% | 6.5% |
|---|
| Anil ($ANILLTD) | - | 6.7% | 5.2% | 11.5% | 8.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinati Organics ($VINATIORGA) | 29.6% | 26.2% | 30.6% | 34.8% | 32.2% |
| Camlin Fine Sciences ($CAMLINFIN) | 11.1% | 17.8% | 24.2% | 29.5% | - |
| Pidilite Industries ($PIDILITIND) | 27.4% | 29.3% | 29.8% | 29.0% | 38.3% |
| Adi Finechem ($ADIFINCHM) | 30.6% | 29.8% | 46.4% | 26.3% | 20.6% |
| Ultramarine & Pigments ($ULTRAMAR) | 20.0% | 16.3% | 20.8% | 25.7% | - |
| |
|---|
| Median (35 companies) | 14.7% | 14.8% | 11.2% | 17.8% | 20.6% |
|---|
| Anil ($ANILLTD) | 23.6% | 17.9% | 16.4% | 16.2% | 15.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kiri Industries ($KIRIINDUS) | 8.2x | 31.3x | 10.6x | 7.7x | - |
| Jayant Agro-Organics ($JAYAGROGN) | 2.8x | 3.1x | 4.6x | 6.5x | 3.4x |
| Oricon Enterprises ($ORICON) | 1.2x | 1.0x | 1.7x | 3.2x | - |
| Sudarshan Chemical Industries ($SUDARSCHEM) | 2.4x | 5.1x | 3.2x | 3.2x | - |
| Meghmani Organics ($MEGH) | 4.2x | 3.7x | 4.3x | 3.1x | - |
| |
|---|
| Median (30 companies) | 1.4x | 1.5x | 1.7x | 0.0x | 0.0x |
|---|
| Anil ($ANILLTD) | 2.2x | 3.4x | 3.8x | 4.0x | 4.2x |
