Plastiblends India CAPEX surged on 310% and Revenue increased on 4.8%
24-05-2016 • About Plastiblends India (
$PLASTIBLEN) • By InTwits
Plastiblends India reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is expanding: 11.4% in FY2016 vs. 10.3% in FY2015 vs. 9.4% in FY2012
- Plastiblends India has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 6.5%
- CAPEX is quite volatile: ₹810m in FY2016, ₹198m in FY2015, ₹41m in FY2014, ₹78m in FY2013, ₹72m in FY2012
- The company has highly profitable business model: ROIC is 22.8%
- It operates with high leverage: Net Debt/EBITDA is 1.4x 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
Plastiblends India's Revenue increased on 4.8%. Revenue decline was accelerating on average at -5.1 pp per annum in the last 5 years. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.56 pp from -0.99% to -0.44% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2013 at 7.7% and was growing since that time.
Net Income margin increased slightly on 1.2 pp from 6.1% to 7.3% in FY2016. During the last 5 years Net Income margin bottomed in FY2013 at 3.8% and was growing since that time.
Investments (CAPEX, working capital and M&A)
Plastiblends India's CAPEX/Revenue was 15.6% in FY2016. The company showed fast CAPEX/Revenue growth of 13.7 pp from 1.9% in FY2013 to 15.6% in FY2016. For the last three years the average CAPEX/Revenue was 6.8%. The company maintained rich investment policy and has spent a lot to CAPEX (137% of EBITDA). During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2014 at 0.88% and was growing since that time.
Return on investment
The company operates at high and attractive ROIC (22.8%) and ROE (22.0%). ROIC decreased slightly on 1.7 pp from 24.5% to 22.8% in FY2016. ROE increased slightly on 1.6 pp from 20.4% to 22.0% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 1.4x. Net Debt / EBITDA surged on 1.0x from 0.4x to 1.4x in FY2016. Debt surged on 306% while cash dropped on 35.4%.
Plastiblends India has short term refinancing risk: cash is only 3.1% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 10.1x and P/E 13.7x while industy averages are 17.8x and 21.9x.
Financial and operational results
Plastiblends India ($PLASTIBLEN) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 3,411 | 4,090 | 4,658 | 4,944 | 5,182 | 4.8% |
| EBITDA | 322 | 314 | 475 | 508 | 593 | 16.7% |
| Net Income | 167 | 154 | 272 | 301 | 377 | 25.4% |
Balance Sheet
|
|---|
| Cash | 14 | 8 | 32 | 23 | 15 | -35.4% |
| Short Term Debt | 329 | 432 | 249 | 203 | 484 | 138.4% |
| Long Term Debt | 163 | 144 | 61 | 0 | 341 | |
Cash flow
|
|---|
| Capex | 72 | 78 | 41 | 198 | 810 | 309.7% |
Ratios
|
|---|
| Revenue growth | 23.2% | 19.9% | 13.9% | 6.1% | 4.8% | |
| EBITDA growth | 10.6% | -2.4% | 51.5% | 6.8% | 16.7% | |
|
|---|
| EBITDA Margin | 9.4% | 7.7% | 10.2% | 10.3% | 11.4% | 1.2% |
| Net Income Margin | 4.9% | 3.8% | 5.8% | 6.1% | 7.3% | 1.2% |
| CAPEX, % of revenue | 2.1% | 1.9% | 0.9% | 4.0% | 15.6% | 11.6% |
|
|---|
| ROIC | 18.3% | 15.8% | 24.0% | 24.5% | 22.8% | -1.7% |
| ROE | 16.5% | 13.7% | 21.5% | 20.4% | 22.0% | 1.6% |
| Net Debt/EBITDA | 1.5x | 1.8x | 0.6x | 0.4x | 1.4x | 1.0x |
Peers in Specialty Chemicals
Below we provide Plastiblends India 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 ($DAICHI) | - | 31.4% | 45.4% | 22.8% | -36.4% |
| |
|---|
| Median (28 companies) | 15.5% | 12.8% | 11.1% | 11.3% | -1.0% |
|---|
| Plastiblends India ($PLASTIBLEN) | - | 19.9% | 13.9% | 6.1% | 4.8% |
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 ($ULTRAMAR) | 18.0% | 15.5% | 17.4% | 17.2% | - |
| |
|---|
| Median (33 companies) | 10.6% | 12.0% | 10.6% | 10.7% | 15.8% |
|---|
| Plastiblends India ($PLASTIBLEN) | 9.4% | 7.7% | 10.2% | 10.3% | 11.4% |
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 ($ORICON) | 10.2% | 6.2% | 4.7% | 7.9% | - |
| |
|---|
| Median (16 companies) | 5.3% | 4.7% | 4.5% | 5.2% | 8.5% |
|---|
| Plastiblends India ($PLASTIBLEN) | 2.1% | 1.9% | 0.9% | 4.0% | 15.6% |
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% | 23.3% |
| 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 ($ULTRAMAR) | 20.0% | 16.3% | 20.8% | 25.7% | - |
| |
|---|
| Median (36 companies) | 14.7% | 14.5% | 11.1% | 16.7% | 20.6% |
|---|
| Plastiblends India ($PLASTIBLEN) | 18.3% | 15.8% | 24.0% | 24.5% | 22.8% |
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 ($SUDARSCHEM) | 2.4x | 5.1x | 3.2x | 3.2x | - |
| |
|---|
| Median (31 companies) | 1.5x | 1.6x | 1.7x | 0.0x | 0.0x |
|---|
| Plastiblends India ($PLASTIBLEN) | 1.5x | 1.8x | 0.6x | 0.4x | 1.4x |
