Anil is a powerful growth stock
27-05-2016 • About Anil (
$ANILLTD) • By InTwits
Have you thought about Anil as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Anil showed fast growth in the last financial year. Anil's revenue surged on 26.6% in FY2016. EBITDA also increased considerably: 17.7% for the same period.
In the last 3 years the company showed fast revenue growth of 20.2% from FY2013 to FY2016 annually. EBITDA surged on 18.6% from FY2013 to FY2016 annually.
Anil ($ANILLTD) financials for the last 5 years
| mln. INR | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 6,447 | 7,060 | 8,249 | 9,691 | 12,267 |
|---|
| Revenue growth, % | | 9.5% | 16.8% | 17.5% | 26.6% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 1,166 | 1,194 | 1,414 | 1,691 | 1,989 |
|---|
| EBITDA growth, % | | 2.3% | 18.4% | 19.6% | 17.7% |
|---|
| EBITDA margin, % | 18.1% | 16.9% | 17.1% | 17.4% | 16.2% |
|---|
| Net Income | 504 | 458 | 483 | 553 | 557 |
|---|
| Net Income margin, % | 7.82% | 6.49% | 5.85% | 5.70% | 4.54% |
|---|
| |
| CAPEX | 0 | 470 | 430 | 1,117 | 1,041 |
|---|
| CAPEX/Revenue, % | 0% | 6.66% | 5.21% | 11.5% | 8.49% |
|---|
| Debt | 2,655 | 4,152 | 5,385 | 6,770 | 8,419 |
|---|
| Cash | 88 | 125 | 60 | 27 | 110 |
|---|
| Net Debt/EBITDA | 2.2x | 3.4x | 3.8x | 4.0x | 4.2x |
|---|
| |
| ROIC, % | 23.6% | 17.9% | 16.4% | 16.2% | 15.5% |
|---|
| ROE, % | 32.6% | 21.7% | 18.9% | 18.4% | 15.8% |
|---|
Profitability and return on investment
EBITDA margin declined slightly from 17.4% in FY2015 to 16.2% in FY2016. In the last 3 years Anil showed small EBITDA margin decline of 0.700 pp from 16.9% in FY2013 to 16.2% in FY2016.
Anil shows attractive ROIC at 15.5% for the last 12 months which assumes stable development model. During the last three years it dropped - it was 17.9% in FY2013. Average ROIC for the last three years was 16.0%.
Net Income margin dropped on 1.20 pp from 5.70% to 4.50% in FY2016. If we look for the longer period the company's Net Income margin dropped on 2 pp from 6.50% in FY2013 to 4.50% in FY2016.
Anil operates at ROE of 15.8%. It's average ROE for the last three years was 17.7%.
Capital expenditures (CAPEX)
To fuel this fast growth the company had to invest in CAPEX.In FY2016 the company had CAPEX/Revenue of 8.49%. The company's CAPEX/Revenue surged on 1.83 pp from 6.66% in FY2013 to 8.49% in FY2016. It's average level of CAPEX/Revenue for the last three years was 8.41%.
Leverage (Debt)
The company has high debt level at 4.2x Net Debt/EBITDA to maintain high growth. This could become a risk fastor if the growth slows down but the company doesn't decrease debt level by that time. If we look for the longer period Anil showed fast leverage growth of 0.80x from 3.37x in FY2013 to 4.18x in FY2016.
Valuation vs. comparable companies
The market closed today at 5.6x EV/EBITDA for Anil which is 77.1% lower than 24.5x Specialty Chemicals peer group avearge calculated on the basis of 76 companies. The market closed today at 5.1x P/E for Anil which is 68.2% lower than 16.2x Specialty Chemicals peer group avearge calculated on the basis of 12 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Anil traded at 11.8x EV/(EBITDA-CAPEX) which is 199% higher than 3.9x Specialty Chemicals peer group avearge calculated on the basis of 8 companies.
Peers in Specialty Chemicals
Below we provide Anil 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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% |
| Nitta Gelatin India ($NITTAGELA) | | 27.8% | -5.5% | 21.2% | -0.5% |
| |
|---|
| Median (27 companies) | 17.4% | 14.1% | 11.3% | 9.8% | -1.0% |
|---|
| Anil ($ANILLTD) | | 9.5% | 16.8% | 17.5% | 26.6% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Vinati Organics ($VINATIORGA) | 21.7% | 21.8% | 22.7% | 24.9% | 32.8% |
| Indian Toners & Developers ($INDTONER) | | | | 22.6% | |
| Solar Industries India ($SOLARINDS) | 18.5% | 17.5% | 17.9% | 19.3% | 19.3% |
| Ultramarine & Pigments ($ULTRAMAR) | 18.0% | 15.5% | 17.4% | 17.2% | |
| Camlin Fine Sciences ($CAMLINFIN) | 9.1% | 12.8% | 12.8% | 16.7% | |
| |
|---|
| Median (32 companies) | 10.6% | 11.2% | 10.6% | 10.5% | 12.7% |
|---|
| Anil ($ANILLTD) | 18.1% | 16.9% | 17.1% | 17.4% | 16.2% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Adi Finechem ($ADIFINCHM) | 7.3% | 4.8% | 12.6% | 16.9% | 9.0% |
| Solar Industries India ($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% | |
| Vinati Organics ($VINATIORGA) | 13.6% | 28.2% | 4.2% | 7.4% | 12.1% |
| |
|---|
| Median (16 companies) | 5.1% | 4.5% | 4.3% | 4.9% | 6.5% |
|---|
| Anil ($ANILLTD) | | 6.7% | 5.2% | 11.5% | 8.5% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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% | |
| 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 ($ULTRAMAR) | 20.0% | 16.3% | 20.8% | 25.7% | |
| |
|---|
| Median (35 companies) | 14.7% | 14.8% | 11.2% | 17.8% | 20.6% |
|---|
| Anil ($ANILLTD) | 23.6% | 17.9% | 16.4% | 16.2% | 15.5% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| 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 |
| Oricon Enterprises ($ORICON) | 1.2x | 1.0x | 1.7x | 3.2x | |
| Sudarshan Chemical Industries ($SUDARSCHEM) | 2.4x | 5.1x | 3.2x | 3.2x | |
| Meghmani Organics ($MEGH) | 4.2x | 3.7x | 4.3x | 3.1x | |
| |
|---|
| Median (30 companies) | 1.4x | 1.5x | 1.7x | 0.0x | 0.0x |
|---|
| Anil ($ANILLTD) | 2.2x | 3.4x | 3.8x | 4.0x | 4.2x |
