Camphor & Allied Products reports 17.8% Net Income growth in 2016 while 1.2% Revenue decline
27-05-2016 • About Camphor & Allied Products (
$CAMPHOR) • By InTwits
Camphor & Allied Products reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Camphor & Allied Products has high CAPEX intensity: 5 year average CAPEX/Revenue was 10.5%. At the same time it's a lot of higher than industry average of 5.9%.
- CAPEX is quite volatile: ₹164m in FY2016, ₹63m in FY2015, ₹60m in FY2014, ₹801m in FY2013, ₹141m in FY2012
- The company has highly profitable business model: ROIC is 14.7%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.1x while industry average is 2.0x
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 decreased slightly on 1.2%. During FY2012-FY2016 Revenue growth topped in FY2014 at 42.7% and was decelerating since that time. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 2.0 pp from 12.2% to 14.2% in FY2016.
Net Income margin increased slightly on 1.0 pp from 5.4% to 6.5% in FY2016.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 4.7%. CAPEX/Revenue dropped on 32.2 pp from 36.9% in FY2013 to 4.7% in FY2016. It's average CAPEX/Revenue for the last three years was 2.8%.
Return on investment
The company operates at good ROIC (14.7%) and ROE (15.7%). ROIC increased slightly on 1.4 pp from 13.3% to 14.7% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.1x and Debt / EBITDA is 2.1x. Net Debt / EBITDA dropped on 0.6x from 2.7x to 2.1x in FY2016. Debt dropped on 11.0% while cash decreased on 9.4%. Net Debt/EBITDA stuck to a declining trend at -0.4x per annum in the last 5 years.
Camphor & Allied Products has short term refinancing risk: cash is only 1.8% of short term debt.
Valuation and dividends
Camphor & Allied Products's trades at EV/EBITDA 8.0x and P/E 12.9x while industy averages are 17.8x and 21.9x. Camphor & Allied Products's EV/(EBITDA-CAPEX) is 11.9x with the industry average at 22.8x.
Management team
The company's CFO is Girish Khandelwal. Girish Khandelwal has 6 years tenure at the company.
Financial and operational results
Camphor & Allied Products ($CAMPHOR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,022 | 2,168 | 3,093 | 3,551 | 3,507 | -1.2% |
| EBITDA | 110 | 329 | 469 | 433 | 498 | 14.9% |
| Net Income | 21 | 239 | 201 | 193 | 227 | 17.8% |
Balance Sheet
|
|---|
| Cash | 523 | 8 | 25 | 21 | 19 | -9.4% |
| Short Term Debt | 317 | 540 | 848 | 1,090 | 1,063 | -2.5% |
| Long Term Debt | 628 | 526 | 341 | 104 | 0 | -100.0% |
Cash flow
|
|---|
| Capex | 141 | 801 | 60 | 63 | 164 | 160.7% |
Ratios
|
|---|
| Revenue growth | -6.7% | 7.2% | 42.7% | 14.8% | -1.2% | |
| EBITDA growth | -17.3% | 199.2% | 42.5% | -7.7% | 14.9% | |
|
|---|
| EBITDA Margin | 5.4% | 15.2% | 15.2% | 12.2% | 14.2% | 2.0% |
| Net Income Margin | 1.0% | 11.0% | 6.5% | 5.4% | 6.5% | 1.0% |
| CAPEX, % of revenue | 7.0% | 36.9% | 2.0% | 1.8% | 4.7% | 2.9% |
|
|---|
| ROIC | 5.7% | 15.5% | 17.0% | 13.3% | 14.7% | 1.4% |
| ROE | 2.9% | 28.1% | 18.8% | 15.4% | 15.7% | 0.3% |
| Net Debt/EBITDA | 3.8x | 3.2x | 2.5x | 2.7x | 2.1x | -0.6x |
Peers in Commodity Chemicals
Below we provide Camphor & Allied Products benchmarking against other companies in Commodity 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 |
|---|
| Tuticorin Alkali Chemicals & Fertilisers ($TUTIALKA) | - | -27.9% | -83.3% | 408.0% | 18.3% |
| Jayshree Chemicals ($JAYCH) | 288.9% | 17.5% | -75.2% | 262.3% | - |
| Jagran Production ($JAGPRO) | - | 4.4% | 514.9% | 192.3% | -32.9% |
| Shree Hari Chemicals Export ($SHHARICH) | -2.5% | -78.0% | 299.5% | 111.6% | - |
| Jindal Poly Films ($JINDPOLBBPH) | -17.2% | -6.3% | 131.7% | 46.9% | - |
| |
|---|
| Median (37 companies) | 33.8% | 11.2% | 10.6% | 5.6% | 0.0% |
|---|
| Camphor & Allied Products ($CAMPHOR) | - | 7.2% | 42.7% | 14.8% | -1.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Riddhi Siddhi Gluco Biols ($RIDDHI) | - | - | - | 104.7% | - |
| Mysore Petro Chemicals ($MYSORPETRO) | - | - | - | 47.1% | - |
| Aditya Birla Chemicals (India) ($ABCIL) | 26.8% | 27.1% | 23.6% | 21.9% | - |
| Indo Borax & Chemicals ($INDOBORAX) | - | - | - | 21.3% | - |
| Chemfab Alkalis ($CHEMFALKAL) | 22.3% | 32.9% | 24.2% | 19.8% | 23.2% |
| |
|---|
| Median (50 companies) | 11.3% | 8.3% | 8.5% | 6.6% | 9.8% |
|---|
| Camphor & Allied Products ($CAMPHOR) | 5.4% | 15.2% | 15.2% | 12.2% | 14.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Kanoria Chemicals & Industries ($KANORICHEM) | 25.1% | 6.0% | 13.4% | 40.3% | 28.7% |
| Aditya Birla Chemicals (India) ($ABCIL) | 136.9% | 24.2% | 30.8% | 15.0% | - |
| Aarti Industries ($AARTIIND) | 8.0% | 11.2% | 11.0% | 10.4% | 16.8% |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 5.1% | 6.6% | 5.9% | 8.6% | 7.3% |
| Sukhjit Starch & Chemicals ($SUKHJITS) | 15.7% | 9.4% | 5.4% | 5.4% | 3.6% |
| |
|---|
| Median (21 companies) | 5.2% | 6.3% | 5.9% | 3.3% | 4.6% |
|---|
| Camphor & Allied Products ($CAMPHOR) | 7.0% | 36.9% | 2.0% | 1.8% | 4.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bodal Chemicals ($BODALCHEM) | -1.3% | 3.3% | 39.0% | 38.3% | 33.1% |
| Elantas Beck India ($ELANTAS) | 20.4% | 33.9% | 31.0% | 36.6% | - |
| Alkyl Amines Chemicals ($ALKYLAMINE) | 16.0% | 18.7% | 25.0% | 23.7% | 24.7% |
| Aarti Industries ($AARTIIND) | 15.9% | 19.1% | 17.2% | 17.9% | 19.3% |
| Transpek Industry ($TRANSPEK) | -1.7% | 14.2% | 11.0% | 17.8% | 26.9% |
| |
|---|
| Median (60 companies) | 9.2% | 9.5% | 8.9% | 7.9% | 15.3% |
|---|
| Camphor & Allied Products ($CAMPHOR) | 5.7% | 15.5% | 17.0% | 13.3% | 14.7% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Iol Chemicals & Pharmaceuticals ($IOLCP) | 5.8x | 4.5x | 3.7x | 35.4x | 8.8x |
| India Glycols ($INDIAGLYCO) | 4.8x | 3.7x | 8.5x | 14.2x | 6.7x |
| Godrej Industries ($GODREJIND) | 9.9x | 5.7x | 7.9x | 10.7x | 10.0x |
| Kanoria Chemicals & Industries ($KANORICHEM) | 5.2x | 9.6x | 3.5x | 9.4x | 10.1x |
| Garware Polyester ($GARWARPOLY) | 2.2x | 3.8x | 4.0x | 5.2x | 3.1x |
| |
|---|
| Median (37 companies) | 2.6x | 3.0x | 0.8x | 0.9x | 1.0x |
|---|
| Camphor & Allied Products ($CAMPHOR) | 3.8x | 3.2x | 2.5x | 2.7x | 2.1x |
