Manaksia CAPEX jumped on 26.1% while Revenue decreased on 2.5%
27-05-2016 • About Manaksia (
$MANAKSIA) • By InTwits
Manaksia reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- Manaksia is a company in decline: FY2016 revenue growth was -2.5%, 5 years revenue CAGR was -5.2%
- Manaksia has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.7%. At the same time it's in pair with industry average of 6.9%
- CAPEX is quite volatile: ₹931m in FY2016, ₹738m in FY2015, ₹787m in FY2014, ₹1,019m in FY2013, ₹1,750m in FY2012
- The company has business model with low profitability: ROIC is 9.2%
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 on 2.5%. During FY2012-FY2016 Revenue growth bottomed in FY2015 at -32.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.1 pp from 18.6% to 16.6% in FY2016. During the last 5 years EBITDA Margin topped in FY2014 at 20.3% and was declining since that time.
Net Income margin decreased slightly on 0.69 pp from 9.2% to 8.5% in FY2016. During the last 5 years Net Income margin topped in FY2014 at 11.4% and was declining since that time.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 8.5% in FY2016. Manaksia showed CAPEX/Revenue growth of 3.6 pp from 4.8% in FY2013 to 8.5% in FY2016. It's average level of CAPEX/Revenue for the last three years was 6.6%. The company invested a big chunk of EBITDA (51.1%) to CAPEX which didn't stop revenue from falling. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2014 at 4.7% and was growing since that time.
Return on investment
The company operates at low ROIC (9.2%) and ROE (8.1%). ROIC decreased on 2.3 pp from 11.4% to 9.2% in FY2016. ROE decreased slightly on 1.4 pp from 9.5% to 8.1% in FY2016. During the last 5 years ROIC topped in FY2014 at 16.0% and was declining since that time. During the last 5 years ROE topped in FY2014 at 16.2% and was declining since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.1x and Debt / EBITDA is 0.7x. Net Debt / EBITDA dropped on 0.9x from 0.9x to 0.1x in FY2016. Debt dropped on 45.7% while cash surged on 362%.
Manaksia has no short term refinancing risk: cash is higher than short term debt (130.9%).
Valuation and dividends
Manaksia's trades at EV/EBITDA 1.5x and P/E 2.8x while industy averages are 17.8x and 21.9x. Manaksia's EV/(EBITDA-CAPEX) is 3.0x with the industry average at 22.8x.
Financial and operational results
Manaksia ($MANAKSIA) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 19,438 | 21,091 | 16,791 | 11,276 | 10,990 | -2.5% |
| EBITDA | 2,801 | 3,669 | 3,404 | 2,099 | 1,820 | -13.3% |
| Net Income | 1,190 | 1,702 | 1,913 | 1,034 | 932 | -9.9% |
Balance Sheet
|
|---|
| Cash | 307 | 347 | 341 | 227 | 1,051 | 362.4% |
| Short Term Debt | 2,282 | 3,590 | 742 | 1,810 | 802 | -55.7% |
| Long Term Debt | 1,700 | 1,303 | 690 | 388 | 391 | 0.9% |
Cash flow
|
|---|
| Capex | 1,750 | 1,019 | 787 | 738 | 931 | 26.1% |
Ratios
|
|---|
| Revenue growth | 35.6% | 8.5% | -20.4% | -32.8% | -2.5% | |
| EBITDA growth | 18.6% | 31.0% | -7.2% | -38.3% | -13.3% | |
|
|---|
| EBITDA Margin | 14.4% | 17.4% | 20.3% | 18.6% | 16.6% | -2.1% |
| Net Income Margin | 6.1% | 8.1% | 11.4% | 9.2% | 8.5% | -0.7% |
| CAPEX, % of revenue | 9.0% | 4.8% | 4.7% | 6.5% | 8.5% | 1.9% |
|
|---|
| ROIC | 12.9% | 15.5% | 16.0% | 11.4% | 9.2% | -2.3% |
| ROE | 11.4% | 14.4% | 16.2% | 9.5% | 8.1% | -1.4% |
| Net Debt/EBITDA | 1.3x | 1.2x | 0.3x | 0.9x | 0.1x | -0.9x |
Peers in Containers & Packaging
Below you can find Manaksia benchmarking vs. other companies in Containers & Packaging industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Control Print ($CONTROLPR) | - | 20.0% | 14.1% | 23.9% | 17.9% |
| Shri Jagdamba Polymers ($SHRJAGP) | 35.5% | 38.3% | 21.7% | 22.7% | - |
| Kg Petrochem ($KGPETRO) | 16.1% | 24.0% | 20.9% | 22.4% | - |
| Kanpur Plastipack ($KANPRPLA) | - | -4.6% | 21.1% | 15.9% | -0.0% |
| Emmbi Industries ($EMMBI) | - | 36.6% | 13.9% | 14.8% | 13.3% |
| |
|---|
| Median (19 companies) | 16.1% | 16.9% | 14.1% | 8.5% | -1.6% |
|---|
| Manaksia ($MANAKSIA) | - | 8.5% | -20.4% | -32.8% | -2.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Control Print ($CONTROLPR) | 13.9% | 19.2% | 22.5% | 25.2% | 27.3% |
| Essel Propack ($ESSELPRO) | 17.0% | 17.4% | 16.9% | 17.2% | 19.4% |
| Time Technoplast ($TIMETECHNO) | 15.9% | 16.2% | 14.1% | 13.7% | - |
| Piramal Glass ($PIRAMGLAS) | 23.7% | 18.9% | 15.5% | 13.5% | - |
| Kg Petrochem ($KGPETRO) | 16.0% | 12.8% | 14.7% | 12.5% | - |
| |
|---|
| Median (22 companies) | 12.9% | 10.6% | 11.4% | 8.8% | 13.6% |
|---|
| Manaksia ($MANAKSIA) | 14.4% | 17.4% | 20.3% | 18.6% | 16.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Control Print ($CONTROLPR) | 3.0% | 5.0% | 7.5% | 11.9% | 8.9% |
| Essel Propack ($ESSELPRO) | 10.0% | 6.7% | 8.5% | 9.4% | 8.9% |
| Piramal Glass ($PIRAMGLAS) | 20.7% | 6.0% | 7.7% | 4.6% | - |
| Time Technoplast ($TIMETECHNO) | 17.9% | 11.1% | 6.2% | 4.2% | - |
| Uflex ($UFLEX) | 23.0% | 11.8% | 3.5% | 3.6% | 8.4% |
| |
|---|
| Median (6 companies) | 8.6% | 8.9% | 7.1% | 4.4% | 8.6% |
|---|
| Manaksia ($MANAKSIA) | 9.0% | 4.8% | 4.7% | 6.5% | 8.5% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Control Print ($CONTROLPR) | - | 19.7% | 22.2% | 25.2% | 26.2% |
| Essel Propack ($ESSELPRO) | 8.6% | 9.9% | 12.5% | 14.7% | 16.6% |
| Time Technoplast ($TIMETECHNO) | 12.8% | 13.4% | 12.0% | 12.9% | - |
| Uflex ($UFLEX) | 12.5% | 9.9% | 8.1% | 8.4% | 9.0% |
| Piramal Glass ($PIRAMGLAS) | 16.1% | 11.0% | 7.6% | 7.0% | - |
| |
|---|
| Median (32 companies) | 9.1% | 9.9% | 11.2% | 10.7% | 12.8% |
|---|
| Manaksia ($MANAKSIA) | 12.9% | 15.5% | 16.0% | 11.4% | 9.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hindusthan National Glass & Industries ($HINDNATGLS) | 7.4x | 15.8x | 11.2x | 10.6x | 8.1x |
| Piramal Glass ($PIRAMGLAS) | 3.1x | 4.1x | 4.3x | 4.2x | - |
| Uflex ($UFLEX) | 2.7x | 3.0x | 3.2x | 2.8x | 2.2x |
| Essel Propack ($ESSELPRO) | 3.2x | 2.9x | 2.6x | 2.2x | 1.6x |
| Time Technoplast ($TIMETECHNO) | 2.6x | 2.6x | 2.6x | 2.2x | - |
| |
|---|
| Median (20 companies) | 3.2x | 3.5x | 2.0x | 0.0x | 0.2x |
|---|
| Manaksia ($MANAKSIA) | 1.3x | 1.2x | 0.3x | 0.9x | 0.1x |
