Camlin Fine Sciences reports 137% CAPEX growth in 2016 while 12.3% Revenue decline
23-05-2016 • About Camlin Fine Sciences (
$CAMLINFIN) • By InTwits
Camlin Fine Sciences reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Camlin Fine Sciences has medium CAPEX intensity: 5 year average CAPEX/Revenue was 7.2%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: ₹671m in FY2016, ₹282m in FY2015, ₹363m in FY2014, ₹212m in FY2013, ₹144m in FY2012
- The company has highly profitable business model: ROIC is 23.3%
- It operates with high leverage: Net Debt/EBITDA is 1.7x 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
Camlin Fine Sciences's Revenue dropped on 12.3%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.1 pp from 16.7% to 18.8% in FY2016. EBITDA Margin grew at 2.3 pp per annum in the last 5 years.
Net Income margin decreased on 2.5 pp from 9.9% to 7.3% in FY2016. Net Income margin followed a growing trend at 1.8 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
Camlin Fine Sciences's CAPEX/Revenue was 13.7% in FY2016. Camlin Fine Sciences showed CAPEX/Revenue growth of 8.0 pp from 5.7% in FY2013 to 13.7% in FY2016. Average CAPEX/Revenue for the last three years was 8.6%. The company invested a big chunk of EBITDA (72.8%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at high and attractive ROIC (23.3%) and ROE (23.0%). ROIC decreased on 6.1 pp from 29.5% to 23.3% in FY2016. ROE dropped on 25.2 pp from 48.2% to 23.0% in FY2016. During the last 5 years ROIC topped in FY2015 at 29.5%. During the last 5 years ROE topped in FY2015 at 48.2%.
Leverage (Debt)
Debt level is 1.7x Net Debt / EBITDA and 1.8x Debt / EBITDA. Net Debt / EBITDA surged on 0.2x from 1.5x to 1.7x in FY2016. Debt jumped on 12.2% while cash dropped on 10.7%. During FY2012-FY2016 Net Debt/EBITDA bottomed in FY2015 at 1.5x.
Camlin Fine Sciences has short term refinancing risk: cash is only 5.5% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 11.5x and P/E 25.2x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 42.4x with the industry average at 22.8x.
Management team
Camlin Fine Sciences's CEO Ashish Subhash Dandekar has spent 13 years with the company.
Financial and operational results
Camlin Fine Sciences ($CAMLINFIN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,352 | 3,736 | 5,087 | 5,583 | 4,893 | -12.3% |
| EBITDA | 304 | 478 | 649 | 934 | 921 | -1.4% |
| Net Income | 38 | 151 | 287 | 550 | 358 | -34.9% |
Balance Sheet
|
|---|
| Cash | 42 | 163 | 45 | 90 | 80 | -10.7% |
| Short Term Debt | 918 | 880 | 1,141 | 1,210 | 1,457 | 20.5% |
| Long Term Debt | 330 | 377 | 285 | 281 | 214 | -23.6% |
Cash flow
|
|---|
| Capex | 144 | 212 | 363 | 282 | 671 | 137.5% |
Ratios
|
|---|
| Revenue growth | 95.3% | 11.4% | 36.1% | 9.8% | -12.3% | |
| EBITDA growth | 95.3% | 57.3% | 35.7% | 43.8% | -1.4% | |
|
|---|
| EBITDA Margin | 9.1% | 12.8% | 12.8% | 16.7% | 18.8% | 2.1% |
| Net Income Margin | 1.1% | 4.0% | 5.6% | 9.9% | 7.3% | -2.5% |
| CAPEX, % of revenue | 4.3% | 5.7% | 7.1% | 5.1% | 13.7% | 8.6% |
|
|---|
| ROIC | 11.1% | 17.8% | 24.2% | 29.5% | 23.3% | -6.1% |
| ROE | 7.6% | 25.5% | 36.2% | 48.2% | 23.0% | -25.2% |
| Net Debt/EBITDA | 4.0x | 2.3x | 2.1x | 1.5x | 1.7x | 0.2x |
Peers in Specialty Chemicals
Below we provide Camlin Fine Sciences benchmarking against other companies in Specialty Chemicals industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Black Rose Industries ($BLACKROSE) | - | 30.6% | -5.6% | 70.0% | -10.0% |
| Kiri Industries ($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 ($DAICHI) | - | 31.4% | 45.4% | 22.8% | -36.4% |
| |
|---|
| Median (28 companies) | 16.4% | 15.0% | 11.1% | 11.3% | -0.5% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | - | 11.4% | 36.1% | 9.8% | -12.3% |
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 ($SOLARINDS) | 18.5% | 17.5% | 17.9% | 19.3% | 19.3% |
| Anil ($ANILLTD) | 18.1% | 16.9% | 17.1% | 17.4% | 16.2% |
| Ultramarine & Pigments ($ULTRAMAR) | 18.0% | 15.5% | 17.4% | 17.2% | - |
| |
|---|
| Median (33 companies) | 10.6% | 10.8% | 10.4% | 10.3% | 15.3% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 9.1% | 12.8% | 12.8% | 16.7% | 18.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Adi Finechem ($ADIFINCHM) | 7.3% | 4.8% | 12.6% | 16.9% | 9.0% |
| Anil ($ANILLTD) | - | 6.7% | 5.2% | 11.5% | 8.5% |
| 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 ($ORICON) | 10.2% | 6.2% | 4.7% | 7.9% | - |
| |
|---|
| Median (16 companies) | 5.3% | 4.5% | 4.3% | 5.0% | 6.3% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 4.3% | 5.7% | 7.1% | 5.1% | 13.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinati Organics ($VINATIORGA) | 29.6% | 26.2% | 30.6% | 34.8% | 32.2% |
| Pidilite Industries ($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% | - |
| Plastiblends India ($PLASTIBLEN) | 18.3% | 15.8% | 24.0% | 24.5% | - |
| |
|---|
| Median (36 companies) | 15.3% | 14.5% | 11.1% | 16.7% | 20.6% |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 11.1% | 17.8% | 24.2% | 29.5% | 23.3% |
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 |
| Anil ($ANILLTD) | 2.2x | 3.4x | 3.8x | 4.0x | 4.2x |
| Oricon Enterprises ($ORICON) | 1.2x | 1.0x | 1.7x | 3.2x | - |
| Sudarshan Chemical Industries ($SUDARSCHEM) | 2.4x | 5.1x | 3.2x | 3.2x | - |
| |
|---|
| Median (31 companies) | 1.5x | 1.6x | 1.7x | 0.0x | 0.0x |
|---|
| Camlin Fine Sciences ($CAMLINFIN) | 4.0x | 2.3x | 2.1x | 1.5x | 1.7x |
