Tara Jewels reports 21.6% EBITDA decline in 2016 while 3.8% Revenue growth
23-05-2016 • About Tara Jewels (
$TARAJEWELS) • By InTwits
Tara Jewels reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: The company has business model with low profitability: ROIC is 9.9%.
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 3.8%. Revenue decline was accelerating on average at -5.2 pp per annum in FY2012-FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.8 pp from 9.6% to 11.4% in FY2016.
Net Income margin decreased slightly on 1.1 pp from 2.5% to 1.4% in FY2016. Net Income margin stuck to a declining trend at -0.69 pp per annum in the last 5 years.
Return on investment
The company operates at low ROIC (9.9%) and ROE (4.3%). ROIC decreased on 3.6 pp from 13.5% to 9.9% in FY2016. ROE decreased on 3.5 pp from 7.8% to 4.3% in FY2016. ROIC followed a declining trend at -2.0 pp per annum in FY2012-FY2016. ROE stuck to a declining trend at -4.6 pp per annum in FY2012-FY2016.
Leverage (Debt)
Debt level is 3.2x Net Debt / EBITDA and 3.8x Debt / EBITDA. Net Debt / EBITDA surged on 1.1x from 2.1x to 3.2x in FY2016. Debt surged on 15.7% while cash decreased on 6.4%. During the last 5 years Net Debt/EBITDA bottomed in FY2013 at 1.5x and was growing since that time.
Tara Jewels has short term refinancing risk: cash is only 16.5% of short term debt.
Valuation and dividends
Tara Jewels's trades at EV/EBITDA 3.9x and P/E 3.5x while industy averages are 17.8x and 21.9x.
Financial and operational results
Tara Jewels ($TARAJEWELS) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13,991 | 16,355 | 16,954 | 17,353 | 18,013 | 3.8% |
| EBITDA | 1,287 | 1,495 | 1,556 | 1,586 | 1,244 | -21.6% |
| Net Income | 539 | 737 | 504 | 437 | 254 | -41.7% |
Balance Sheet
|
|---|
| Cash | 223 | 1,124 | 710 | 835 | 782 | -6.4% |
| Short Term Debt | 3,320 | 3,242 | 3,849 | 4,097 | 4,731 | 15.5% |
| Long Term Debt | 69 | 63 | 12 | 3 | 12 | 267.2% |
Cash flow
|
|---|
| Capex | 222 | 212 | 528 | | | |
Ratios
|
|---|
| Revenue growth | 22.5% | 16.9% | 3.7% | 2.4% | 3.8% | |
| EBITDA growth | 32.6% | 16.2% | 4.1% | 1.9% | -21.6% | |
|
|---|
| EBITDA Margin | 9.2% | 9.1% | 9.2% | 9.1% | 6.9% | -2.2% |
| Net Income Margin | 3.9% | 4.5% | 3.0% | 2.5% | 1.4% | -1.1% |
| CAPEX, % of revenue | 1.6% | 1.3% | 3.1% | | | |
|
|---|
| ROIC | 17.5% | 18.6% | 15.1% | 13.5% | 9.9% | -3.6% |
| ROE | 21.6% | 19.1% | 9.8% | 7.8% | 4.3% | -3.5% |
| Net Debt/EBITDA | 2.5x | 1.5x | 2.0x | 2.1x | 3.2x | 1.1x |
Peers in Other Apparels & Accessories
Below you can find Tara Jewels benchmarking vs. other companies in Other Apparels & Accessories 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 |
|---|
| Bhartiya International ($BIL) | 28.4% | 20.9% | 36.7% | 34.7% | - |
| Page Industries ($PAGEIND) | 39.0% | 26.3% | 37.5% | 30.0% | - |
| Mini Diamonds (India) ($MINID) | - | 59.6% | 117.1% | 26.9% | 3.1% |
| Cantabil Retail India ($CANTABIL) | -11.6% | -30.4% | -3.3% | 25.0% | - |
| Thangamayil Jewellery ($THANGAMAYL) | 72.0% | 34.6% | -21.8% | 19.3% | - |
| |
|---|
| Median (23 companies) | 7.7% | 19.5% | 15.3% | -0.9% | 2.5% |
|---|
| Tara Jewels ($TARAJEWELS) | - | 16.9% | 3.7% | 2.4% | 3.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ceenik Exports (India) ($CEENIK) | - | - | - | 27.2% | - |
| Arrow Textiles ($ARROWTEX) | - | - | - | 25.2% | - |
| Page Industries ($PAGEIND) | 21.1% | 20.5% | 21.5% | 20.7% | - |
| Banaras Beads ($BANARBEADS) | - | - | - | 17.9% | - |
| Rupa & Company ($RUPA) | 12.7% | 15.0% | 15.3% | 14.5% | - |
| |
|---|
| Median (31 companies) | 7.5% | 5.5% | 5.4% | 4.8% | 3.1% |
|---|
| Tara Jewels ($TARAJEWELS) | 9.2% | 9.1% | 9.2% | 9.1% | 6.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zodiac Clothing Co ($ZODIACLOTH) | 5.7% | 3.9% | 4.0% | 5.0% | - |
| Page Industries ($PAGEIND) | 4.0% | 5.2% | 4.4% | 3.6% | - |
| Pearl Global Industries ($PGIL) | 0.9% | 0.7% | 1.3% | 3.1% | - |
| Rupa & Company ($RUPA) | 1.9% | 3.9% | 1.7% | 2.2% | - |
| Bhartiya International ($BIL) | 4.5% | 3.9% | 1.8% | 2.1% | - |
| |
|---|
| Median (11 companies) | 1.7% | 1.7% | 1.1% | 0.7% | 0.4% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Page Industries ($PAGEIND) | 54.9% | 58.5% | 61.6% | 59.2% | - |
| Ashapura Intimates Fashion ($AIFL) | 24.1% | 19.1% | 23.4% | 39.9% | - |
| Rupa & Company ($RUPA) | 22.4% | 27.1% | 25.8% | 23.8% | - |
| Bhartiya International ($BIL) | 13.0% | 10.6% | 11.2% | 12.8% | - |
| Asian Star Co ($ASTAR) | 6.6% | 6.9% | 8.5% | 8.2% | 6.6% |
| |
|---|
| Median (40 companies) | 9.3% | 7.2% | 10.9% | 7.3% | 4.6% |
|---|
| Tara Jewels ($TARAJEWELS) | 17.5% | 18.6% | 15.1% | 13.5% | 9.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.6x | 11.9x | 61.2x | - |
| Shrenuj & Co ($SHRENUJ) | 9.3x | 11.2x | 11.7x | 13.5x | - |
| Gokaldas Exports ($GOKEX) | - | - | 3.6x | 10.4x | - |
| Tribhovandas Bhimji Zaveri ($TBZ) | 1.6x | 2.7x | 4.1x | 6.6x | 16.2x |
| Asian Star Co ($ASTAR) | 7.1x | 7.1x | 5.9x | 4.8x | 5.2x |
| |
|---|
| Median (24 companies) | 2.2x | 2.9x | 0.0x | 0.2x | 0.0x |
|---|
| Tara Jewels ($TARAJEWELS) | 2.5x | 1.5x | 2.0x | 2.1x | 3.2x |
