The numbers tell that Shaily Engineering Plastics's growth is outstanding
25-05-2016 • About Shaily Engineering Plastics (
$SHAILY) • By InTwits
Pay attention to Shaily Engineering Plastics as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Shaily Engineering Plastics showed fast growth in the last financial year. Shaily Engineering Plastics's revenue surged on 25.5% in FY2016. Together with revenue growth Shaily Engineering Plastics also managed to keep EBITDA growth. EBITDA grew 47.2% for the same period.
In the longer period Shaily Engineering Plastics showed fast revenue growth of 22.6% from FY2013 to FY2016 annually. EBITDA surged on 32.0% from FY2013 to FY2016 annually.
Shaily Engineering Plastics ($SHAILY) financials for the last 5 years
| mln. INR | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 1,456 | 1,223 | 1,508 | 1,797 | 2,255 |
|---|
| Revenue growth, % | | -16.0% | 23.3% | 19.2% | 25.5% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 209 | 170 | 242 | 265 | 391 |
|---|
| EBITDA growth, % | | -18.7% | 42.6% | 9.6% | 47.2% |
|---|
| EBITDA margin, % | 14.3% | 13.9% | 16.0% | 14.8% | 17.3% |
|---|
| Net Income | 64 | 36 | 66 | 130 | 155 |
|---|
| Net Income margin, % | 4.37% | 2.96% | 4.37% | 7.24% | 6.87% |
|---|
| |
| CAPEX | 54 | 0 | 162 | 309 | 293 |
|---|
| CAPEX/Revenue, % | 3.70% | 0% | 10.7% | 17.2% | 13.0% |
|---|
| Debt | 404 | 380 | 658 | 697 | 672 |
|---|
| Cash | 4 | 66 | 192 | 15 | 90 |
|---|
| Net Debt/EBITDA | 1.9x | 1.8x | 1.9x | 2.6x | 1.5x |
|---|
| |
| ROIC, % | 19.5% | 15.0% | 19.3% | 15.2% | 18.2% |
|---|
| ROE, % | 21.5% | 10.6% | 16.8% | 21.5% | 18.4% |
|---|
Profitability and return on investment
EBITDA growth was supported by margin expansion. The company showed fast EBITDA margin growth of 2.50 pp from 14.8% to 17.3% in FY2016. In the longer period EBITDA margin surged on 3.40 pp from 13.9% in FY2013 to 17.3% in FY2016.
We call Shaily Engineering Plastics an attractive growth stock as together with the growth it delivers high ROIC at 18.2%. During the last three years it surged - it was 15.0% in FY2013. It's average ROIC for the last three years was 17.5%.
Net Income margin decreased slightly on 0.300 pp from 7.20% to 6.90% in FY2016. In the last 3 years the company showed fast Net Income margin growth of 3.90 pp from 3% in FY2013 to 6.90% in FY2016.
Shaily Engineering Plastics operates at ROE of 18.4%. For the last three years the average ROE was 18.9%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.In FY2016 Shaily Engineering Plastics had CAPEX/Revenue of 13.0%. Shaily Engineering Plastics showed fast CAPEX/Revenue growth of 13.0 pp from 0% in FY2013 to 13.0% in FY2016. It's average level of CAPEX/Revenue for the last three years was 13.6%.
Leverage (Debt)
Having such a fast growth profile Shaily Engineering Plastics keeps medium debt level at 1.5x Net Debt/EBITDA. If we look for the longer period the company's leverage dropped on 0.36x from 1.85x in FY2013 to 1.49x in FY2016.
Valuation vs. comparable companies
At the end of trading day today Shaily Engineering Plastics traded at 12.8x EV/EBITDA which is 47.7% lower than 24.5x Plastic Products peer group avearge calculated on the basis of 93 companies. At the end of trading day today Shaily Engineering Plastics traded at 28.6x P/E which is 35.9% lower than 44.6x Plastic Products peer group avearge calculated on the basis of 9 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The company trades at 51.2x EV/(EBITDA-CAPEX) which is not surprisingly 1,400% higher than 3.4x Plastic Products industry avearge calculated based on 7 companies.
Peers in Plastic Products
Below we provide Shaily Engineering Plastics benchmarking against other companies in Plastic Products 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Astral Poly Technik ($ASTRAL) | 41.7% | 41.6% | 30.8% | 32.4% | |
| Max India ($MAX) | 28.0% | 23.7% | 10.1% | 27.4% | |
| Wim Plast ($WIMPLAST) | 27.5% | 23.1% | 19.5% | 23.5% | |
| Acrysil ($ACRYSIL) | 11.3% | 29.6% | 33.8% | 19.4% | |
| Fenoplast ($FENOPLAS) | 11.4% | -1.1% | 12.6% | 8.5% | |
| |
|---|
| Median (11 companies) | 18.2% | 24.4% | 12.6% | 8.4% | |
|---|
| Shaily Engineering Plastics ($SHAILY) | | -16.0% | 23.3% | 19.2% | 25.5% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Acrysil ($ACRYSIL) | 12.4% | 16.8% | 17.5% | 19.5% | |
| Wim Plast ($WIMPLAST) | 18.1% | 17.9% | 18.1% | 17.0% | |
| Jain Irrigation Systems ($JISLJALEQS) | 16.6% | 12.6% | 12.6% | 12.4% | |
| Responsive Industries ($RESPONIND) | 13.4% | 11.5% | 10.3% | 12.2% | |
| Bloom Dekor ($BLOOM) | | | | 11.8% | |
| |
|---|
| Median (14 companies) | 11.7% | 11.2% | 11.1% | 10.7% | |
|---|
| Shaily Engineering Plastics ($SHAILY) | 14.3% | 13.9% | 16.0% | 14.8% | 17.3% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Flexituff International ($FLEXITUFF) | 10.8% | 10.3% | 15.7% | 10.0% | |
| Acrysil ($ACRYSIL) | 7.8% | 11.0% | 9.6% | 9.3% | |
| Wim Plast ($WIMPLAST) | 14.3% | 8.1% | 3.7% | 7.9% | |
| Astral Poly Technik ($ASTRAL) | 11.9% | 8.4% | 8.6% | 6.0% | |
| Responsive Industries ($RESPONIND) | 14.7% | 10.3% | 6.9% | 3.8% | |
| |
|---|
| Median (7 companies) | 10.8% | 8.2% | 6.9% | 6.0% | |
|---|
| Shaily Engineering Plastics ($SHAILY) | 3.7% | | 10.7% | 17.2% | 13.0% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Wim Plast ($WIMPLAST) | 31.8% | 31.2% | 31.0% | 31.2% | |
| Acrysil ($ACRYSIL) | 7.7% | 16.2% | 20.2% | 21.0% | |
| Astral Poly Technik ($ASTRAL) | 29.3% | 31.1% | 33.3% | 19.7% | |
| Max India ($MAX) | 8.9% | 24.3% | 7.0% | 12.7% | |
| Jain Irrigation Systems ($JISLJALEQS) | 13.4% | 8.3% | 9.0% | 8.6% | |
| |
|---|
| Median (21 companies) | 10.0% | 10.9% | 11.0% | 12.7% | |
|---|
| Shaily Engineering Plastics ($SHAILY) | 19.5% | 15.0% | 19.3% | 15.2% | 18.2% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Flexituff International ($FLEXITUFF) | 2.2x | 3.1x | 4.3x | 5.3x | |
| Jain Irrigation Systems ($JISLJALEQS) | 3.8x | 5.1x | 4.8x | 4.8x | |
| Acrysil ($ACRYSIL) | 2.9x | 2.2x | 2.0x | 2.7x | |
| Responsive Industries ($RESPONIND) | 3.3x | 2.9x | 2.4x | 1.9x | |
| Astral Poly Technik ($ASTRAL) | 1.0x | 0.7x | 0.9x | 1.1x | |
| |
|---|
| Median (14 companies) | 2.2x | 2.3x | 0.4x | 0.0x | 0.0x |
|---|
| Shaily Engineering Plastics ($SHAILY) | 1.9x | 1.8x | 1.9x | 2.6x | 1.5x |
