Astral Poly Technik CAPEX surged on 59.7% and Revenue surged on 20.2%
27-05-2016 • About Astral Poly Technik (
$ASTRAL) • By InTwits
Astral Poly Technik reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Astral Poly Technik is a fast growth stock: FY2016 revenue growth was 20.2%, 5 year revenue CAGR was 33.1% at FY2016 ROIC 17.3%
- Astral Poly Technik has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.6%. At the same time it's a lot of higher than industry average of 5.5%.
- CAPEX is quite volatile: ₹496,620m in FY2016, ₹633,640m in FY2015, ₹600,870m in FY2014, ₹307,260m in FY2013, ₹163,810m in FY2012
- The company has highly profitable business model: ROIC is 17.3%
- It operates with medium-size leverage: Net Debt/EBITDA is 0.7x while industry average is 0.9x
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 surged on 20.2%. Revenue decline was accelerating on average at -5.2 pp per annum in the last 5 years. EBITDA Margin showed almost no change in FY2016.
SG&A as a % of Revenue showed almost no change in FY2016.
Net Income margin increased slightly on 0.55 pp from 5.3% to 5.9% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 8.0%. Astral Poly Technik showed almost no change in CAPEX/Revenue from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 7.5%. To maintain its fast growth Astral Poly Technik invested a large share of EBITDA (66.7%) to CAPEX.
Return on investment
The company operates at good ROIC (17.3%) and ROE (14.4%). ROIC decreased on 2.4 pp from 19.7% to 17.3% in FY2016. ROE decreased slightly on 1.9 pp from 16.2% to 14.4% in FY2016. During the last 5 years ROIC topped in FY2014 at 33.3% and was declining since that time. During FY2012-FY2016 ROE topped in FY2013 at 28.5% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is 1.0x. Net Debt / EBITDA dropped on 0.4x from 1.1x to 0.7x in FY2016. Debt showed almost no change in FY2016 while cash surged on 371%.
Astral Poly Technik has short term refinancing risk: cash is only 73.4% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 24.8x and P/E 49.2x while industy averages are 17.8x and 21.9x. Astral Poly Technik's EV/(EBITDA-CAPEX) is 74.7x with the industry average at 22.8x.
Management team
The company's CEO Sandeep P Engineer has spent 14 years with the company.
Financial and operational results
Astral Poly Technik ($ASTRAL) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,827 | 8,252 | 10,796 | 14,299 | 17,190 | 20.2% |
| SG&A | | | | 506 | 668 | 32.1% |
| EBITDA | 828 | 1,172 | 1,600 | 1,683 | 2,051 | 21.9% |
| Net Income | 395 | 606 | 789 | 759 | 1,006 | 32.6% |
Balance Sheet
|
|---|
| Cash | 110 | 115 | 9 | 115 | 541 | 370.7% |
| Short Term Debt | 291 | 279 | 613 | 814 | 738 | -9.3% |
| Long Term Debt | 648 | 644 | 806 | 1,213 | 1,288 | 6.2% |
Cash flow
|
|---|
| Capex | 696 | 696 | 924 | 858 | 1,369 | 59.7% |
Ratios
|
|---|
| Revenue growth | 41.7% | 41.6% | 30.8% | 32.4% | 20.2% | |
| EBITDA growth | 49.4% | 41.5% | 36.5% | 5.2% | 21.9% | |
|
|---|
| EBITDA Margin | 14.2% | 14.2% | 14.8% | 11.8% | 11.9% | 0.2% |
| SG&A, % of revenue | | | | 3.5% | 3.9% | 0.4% |
| Net Income Margin | 6.8% | 7.3% | 7.3% | 5.3% | 5.9% | 0.5% |
| CAPEX, % of revenue | 11.9% | 8.4% | 8.6% | 6.0% | 8.0% | 2.0% |
|
|---|
| ROIC | 29.3% | 31.1% | 33.3% | 19.7% | 17.3% | -2.4% |
| ROE | 23.8% | 28.5% | 28.4% | 16.2% | 14.4% | -1.9% |
| Net Debt/EBITDA | 1.0x | 0.7x | 0.9x | 1.1x | 0.7x | -0.4x |
Peers in Plastic Products
Below we provide Astral Poly Technik 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, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Max India ($MAX) | 28.0% | 23.7% | 10.1% | 27.4% | - |
| Wim Plast ($WIMPLAST) | - | 23.1% | 19.5% | 23.5% | -1.9% |
| Acrysil ($ACRYSIL) | - | 29.6% | 33.8% | 19.4% | 31.6% |
| Shaily Engineering Plastics ($SHAILY) | - | -16.0% | 23.3% | 19.2% | 25.5% |
| Fenoplast ($FENOPLAS) | 11.4% | -1.1% | 12.6% | 8.5% | - |
| |
|---|
| Median (11 companies) | 18.2% | 23.4% | 12.6% | 8.4% | 7.5% |
|---|
| Astral Poly Technik ($ASTRAL) | - | 41.6% | 30.8% | 32.4% | 20.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Acrysil ($ACRYSIL) | 12.4% | 16.8% | 17.5% | 19.5% | 17.1% |
| Wim Plast ($WIMPLAST) | 18.1% | 17.9% | 18.1% | 17.0% | 20.9% |
| Shaily Engineering Plastics ($SHAILY) | 14.3% | 13.9% | 16.0% | 14.8% | 17.3% |
| Jain Irrigation Systems ($JISLJALEQS) | 16.6% | 12.6% | 12.6% | 12.4% | - |
| Responsive Industries ($RESPONIND) | 13.4% | 11.5% | 10.3% | 12.2% | - |
| |
|---|
| Median (15 companies) | 11.7% | 11.2% | 11.1% | 9.7% | 14.0% |
|---|
| Astral Poly Technik ($ASTRAL) | 14.2% | 14.2% | 14.8% | 11.8% | 11.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shaily Engineering Plastics ($SHAILY) | 3.7% | - | 10.7% | 17.2% | 13.0% |
| Flexituff International ($FLEXITUFF) | 10.8% | 10.3% | 15.7% | 10.0% | 5.0% |
| Acrysil ($ACRYSIL) | 7.8% | 11.0% | 9.6% | 9.3% | 5.0% |
| Wim Plast ($WIMPLAST) | 14.3% | 8.1% | 3.7% | 7.9% | 3.3% |
| Responsive Industries ($RESPONIND) | 14.7% | 10.3% | 6.9% | 3.8% | - |
| |
|---|
| Median (7 companies) | 7.8% | 8.1% | 6.9% | 7.9% | 5.0% |
|---|
| Astral Poly Technik ($ASTRAL) | 11.9% | 8.4% | 8.6% | 6.0% | 8.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wim Plast ($WIMPLAST) | 31.8% | 31.2% | 31.0% | 31.2% | 31.6% |
| Acrysil ($ACRYSIL) | 7.7% | 16.2% | 20.2% | 21.0% | 16.9% |
| Shaily Engineering Plastics ($SHAILY) | 19.5% | 15.0% | 19.3% | 15.2% | 18.2% |
| Max India ($MAX) | 8.9% | 24.3% | 7.0% | 12.7% | - |
| Jain Irrigation Systems ($JISLJALEQS) | 13.4% | 8.3% | 9.0% | 8.6% | - |
| |
|---|
| Median (22 companies) | 10.0% | 10.9% | 11.0% | 12.7% | 17.5% |
|---|
| Astral Poly Technik ($ASTRAL) | 29.3% | 31.1% | 33.3% | 19.7% | 17.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Flexituff International ($FLEXITUFF) | 2.2x | 3.1x | 4.3x | 5.3x | 4.5x |
| Jain Irrigation Systems ($JISLJALEQS) | 3.8x | 5.1x | 4.8x | 4.8x | - |
| Acrysil ($ACRYSIL) | 2.9x | 2.2x | 2.0x | 2.7x | 1.4x |
| Shaily Engineering Plastics ($SHAILY) | 1.9x | 1.8x | 1.9x | 2.6x | 1.5x |
| Responsive Industries ($RESPONIND) | 3.3x | 2.9x | 2.4x | 1.9x | - |
| |
|---|
| Median (15 companies) | 2.2x | 2.2x | 0.0x | 0.0x | 0.0x |
|---|
| Astral Poly Technik ($ASTRAL) | 1.0x | 0.7x | 0.9x | 1.1x | 0.7x |
