Thangamayil Jewellery EBITDA jumped on 1,420% and EBITDA Margin increased on 3.2 pp from 0.20% to 3.4%
25-05-2016 • About Thangamayil Jewellery (
$THANGAMAYL) • By InTwits
Thangamayil Jewellery reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 3.4% in FY2016, 0.2% in FY2015, 1.6% in FY2014, 5.5% in FY2013, 10.5% in FY2012
- Thangamayil Jewellery has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 1.2%
- CAPEX is quite volatile: ₹51m in FY2016, ₹34m in FY2015, ₹170m in FY2014, ₹186m in FY2013, ₹400m in FY2012
- The company has highly profitable business model: ROIC is 13.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.9x while industry average is 2.5x
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 dropped on 10.5%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.2 pp from 0.20% to 3.4% in FY2016. During FY2012-FY2016 EBITDA Margin bottomed in FY2015 at 0.20%.
Net Income margin increased on 2.4 pp from -1.6% to 0.83% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2015 at -1.6%.
Investments (CAPEX, working capital and M&A)
Thangamayil Jewellery's CAPEX/Revenue was 0.40% in FY2016. Thangamayil Jewellery's CAPEX/Revenue decreased slightly on 0.82 pp from 1.2% in FY2013 to 0.40% in FY2016. It's average level of CAPEX/Revenue for the last three years was 0.69%. CAPEX as a % of Revenue declined at -0.73 pp per annum in FY2012-FY2016.
Return on investment
The company operates at good ROIC (13.1%) while ROE is low (7.9%). ROIC surged on 14.7 pp from -1.6% to 13.1% in FY2016. ROE jumped on 23.7 pp from -15.8% to 7.9% in FY2016. During the last 5 years ROIC bottomed in FY2015 at -1.6%. During FY2012-FY2016 ROE bottomed in FY2015 at -15.8%.
Leverage (Debt)
Debt level is 2.9x Net Debt / EBITDA and 3.1x Debt / EBITDA. Net Debt / EBITDA dropped on 58.3x from 61.2x to 2.9x in FY2016. Debt dropped on 24.0% while cash surged on 174%. During the last 5 years Net Debt/EBITDA topped in FY2015 at 61.2x.
Thangamayil Jewellery has short term refinancing risk: cash is only 12.1% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 9.0x and P/E 25.0x while industy averages are 17.8x and 21.9x. Thangamayil Jewellery's EV/(EBITDA-CAPEX) is 10.2x with the industry average at 22.8x.
Financial and operational results
Thangamayil Jewellery ($THANGAMAYL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 11,313 | 15,230 | 11,913 | 14,213 | 12,720 | -10.5% |
| EBITDA | 1,184 | 837 | 186 | 28 | 432 | 1,419.7% |
| Net Income | 591 | 296 | -126 | -223 | 105 | |
Balance Sheet
|
|---|
| Cash | 64 | 124 | 103 | 34 | 94 | 173.6% |
| Short Term Debt | 2,509 | 2,165 | 2,129 | 1,273 | 775 | -39.1% |
| Long Term Debt | 196 | 164 | 186 | 503 | 575 | 14.4% |
Cash flow
|
|---|
| Capex | 400 | 186 | 170 | 34 | 51 | 50.7% |
Ratios
|
|---|
| Revenue growth | 72.0% | 34.6% | -21.8% | 19.3% | -10.5% | |
| EBITDA growth | 101.5% | -29.3% | -77.7% | -84.7% | 1,419.7% | |
|
|---|
| EBITDA Margin | 10.5% | 5.5% | 1.6% | 0.2% | 3.4% | 3.2% |
| Net Income Margin | 5.2% | 1.9% | -1.1% | -1.6% | 0.8% | 2.4% |
| CAPEX, % of revenue | 3.5% | 1.2% | 1.4% | 0.2% | 0.4% | 0.2% |
|
|---|
| ROIC | 34.8% | 19.0% | 3.3% | -1.6% | 13.1% | 14.7% |
| ROE | 48.3% | 18.9% | -7.8% | -15.8% | 7.9% | 23.7% |
| Net Debt/EBITDA | 2.2x | 2.6x | 11.9x | 61.2x | 2.9x | -58.3x |
Peers in Other Apparels & Accessories
Below we provide Thangamayil Jewellery benchmarking against other companies in Other Apparels & Accessories 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 |
|---|
| Bhartiya International ($BIL) | - | 20.9% | 36.7% | 34.7% | 12.1% |
| Page Industries ($PAGEIND) | - | 26.3% | 37.5% | 30.0% | 15.5% |
| Mini Diamonds (India) ($MINID) | - | 59.6% | 117.1% | 26.9% | 3.1% |
| Cantabil Retail India ($CANTABIL) | -11.6% | -30.4% | -3.3% | 25.0% | - |
| Shrenuj & Co ($SHRENUJ) | 28.3% | 22.6% | 20.2% | 18.1% | - |
| |
|---|
| Median (23 companies) | 5.0% | 19.1% | 15.3% | -0.9% | 3.8% |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | - | 34.6% | -21.8% | 19.3% | -10.5% |
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 ($PAGEIND) | 21.1% | 20.5% | 21.5% | 20.7% | 21.2% |
| Banaras Beads ($BANARBEADS) | - | - | - | 17.9% | - |
| Rupa & Company ($RUPA) | 12.7% | 15.0% | 15.3% | 14.5% | - |
| |
|---|
| Median (31 companies) | 7.5% | 6.1% | 6.1% | 5.2% | 5.4% |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 10.5% | 5.5% | 1.6% | 0.2% | 3.4% |
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% | 1.5% |
| Pearl Global Industries ($PGIL) | 0.9% | 0.7% | 1.3% | 3.1% | 1.7% |
| Rupa & Company ($RUPA) | 1.9% | 3.9% | 1.7% | 2.2% | - |
| Bhartiya International ($BIL) | 4.5% | 3.9% | 1.8% | 2.1% | 0.5% |
| |
|---|
| Median (10 companies) | 1.5% | 1.7% | 1.1% | 1.4% | 0.6% |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 3.5% | 1.2% | 1.4% | 0.2% | 0.4% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Page Industries ($PAGEIND) | 54.9% | 58.5% | 61.6% | 59.2% | 60.1% |
| Ashapura Intimates Fashion ($AIFL) | 24.1% | 19.1% | 23.4% | 39.9% | - |
| Rupa & Company ($RUPA) | 22.4% | 27.1% | 25.8% | 23.8% | - |
| Tara Jewels ($TARAJEWELS) | 17.5% | 18.6% | 15.1% | 13.5% | 9.9% |
| Bhartiya International ($BIL) | 13.0% | 10.6% | 11.2% | 12.8% | 11.4% |
| |
|---|
| Median (40 companies) | 9.3% | 7.2% | 11.0% | 8.2% | 8.2% |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 34.8% | 19.0% | 3.3% | -1.6% | 13.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 |
| Bhartiya International ($BIL) | 2.3x | 3.2x | 3.5x | 3.1x | 3.4x |
| |
|---|
| Median (24 companies) | 2.3x | 2.9x | 0.0x | 0.2x | 1.2x |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.6x | 11.9x | 61.2x | 2.9x |
