Ultramarine & Pigments CAPEX surged on 498% and Revenue surged on 27.7%
27-05-2016 • About Ultramarine & Pigments (
$ULTRAMAR) • By InTwits
Ultramarine & Pigments reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Ultramarine & Pigments is a growth stock: FY2016 revenue growth was 27.7%, 5 year revenue CAGR was 13.2% at FY2016 ROIC 30.2%
- Ultramarine & Pigments has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.6%. At the same time it's in pair with industry average of 11.4%
- CAPEX is quite volatile: ₹169m in FY2016, ₹28m in FY2015, ₹52m in FY2014, ₹36m in FY2013, ₹103m in FY2012
- The company has highly profitable business model: ROIC is 30.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Ultramarine & Pigments's Revenue jumped on 27.7%. During FY2012-FY2016 Revenue growth bottomed in FY2013 at 3.0% and was accelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 53.5 pp from 12.3% to -41.2% in FY2016.
Net Income margin increased slightly on 1.6 pp from 10.9% to 12.5% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2013 at 8.7% and was growing since that time.
Investments (CAPEX, working capital and M&A)
Ultramarine & Pigments's CAPEX/Revenue was 7.7% in FY2016. The company showed CAPEX/Revenue growth of 5.2 pp from 2.5% in FY2013 to 7.7% in FY2016. It's average CAPEX/Revenue for the last three years was 4.3%.
Return on investment
The company operates at high and attractive ROIC (30.2%) and ROE (25.6%). ROIC increased on 4.5 pp from 25.7% to 30.2% in FY2016. ROE increased on 6.0 pp from 19.6% to 25.6% in FY2016. ROIC followed a growing trend at 3.0 pp per annum in FY2012-FY2016. During the last 5 years ROE bottomed in FY2013 at 14.4% and was growing since that time.
Leverage (Debt)
The company has no debt. Cash dropped on 54.2%.
Valuation and dividends
Ultramarine & Pigments's trades at EV/EBITDA 10.2x and P/E 14.2x while industy averages are 17.8x and 21.9x. Ultramarine & Pigments's EV/(EBITDA-CAPEX) is 18.5x with the industry average at 22.8x.
Financial and operational results
Ultramarine & Pigments ($ULTRAMAR) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,360 | 1,402 | 1,502 | 1,716 | 2,192 | 27.7% |
| EBITDA | 245 | 218 | 261 | 294 | 376 | 27.8% |
| Net Income | 137 | 121 | 144 | 187 | 274 | 46.0% |
Balance Sheet
|
|---|
| Cash | 44 | 45 | 42 | 145 | 67 | -54.2% |
| Short Term Debt | 38 | 41 | 20 | 0 | 0 | |
| Long Term Debt | 58 | 20 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 103 | 36 | 52 | 28 | 169 | 498.1% |
Ratios
|
|---|
| Revenue growth | 15.5% | 3.0% | 7.2% | 14.2% | 27.7% | |
| EBITDA growth | 3.6% | -11.3% | 20.1% | 12.7% | 27.8% | |
|
|---|
| EBITDA Margin | 18.0% | 15.5% | 17.4% | 17.2% | 17.2% | 0.0% |
| Net Income Margin | 10.1% | 8.7% | 9.6% | 10.9% | 12.5% | 1.6% |
| CAPEX, % of revenue | 7.6% | 2.5% | 3.4% | 1.7% | 7.7% | 6.1% |
|
|---|
| ROIC | 20.0% | 16.3% | 20.8% | 25.7% | 30.2% | 4.5% |
| ROE | 17.1% | 14.4% | 16.1% | 19.6% | 25.6% | 6.0% |
| Net Debt/EBITDA | 0.2x | 0.1x | -0.1x | -0.5x | -0.2x | 0.3x |
Peers in Specialty Chemicals
Below you can find Ultramarine & Pigments benchmarking vs. other companies in Specialty Chemicals 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 |
|---|
| Black Rose Industries ($BLACKROSE) | - | 30.6% | -5.6% | 70.0% | -10.0% |
| Kiri Industries ($KIRIINDUS) | 7.9% | -86.5% | 24.8% | 34.7% | - |
| Vidhi Dyestuffs Manufacturing ($VIDHIDYE) | - | 4.7% | 19.5% | 30.0% | -1.4% |
| Keltech Energies ($KELENRG) | - | -13.4% | -0.4% | 24.4% | -6.3% |
| Dai-Ichi Karkaria ($DAICHI) | - | 31.4% | 45.4% | 22.8% | -36.4% |
| |
|---|
| Median (29 companies) | 17.4% | 14.1% | 13.7% | 10.9% | -1.4% |
|---|
| Ultramarine & Pigments ($ULTRAMAR) | - | 3.0% | 7.2% | 14.2% | 27.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Vinati Organics ($VINATIORGA) | 21.7% | 21.8% | 22.7% | 24.9% | 32.8% |
| Indian Toners & Developers ($INDTONER) | - | - | - | 22.6% | - |
| Solar Industries India ($SOLARINDS) | 18.5% | 17.5% | 17.9% | 19.3% | 19.3% |
| Anil ($ANILLTD) | 18.1% | 16.9% | 17.1% | 17.4% | 16.2% |
| Camlin Fine Sciences ($CAMLINFIN) | 9.1% | 12.8% | 12.8% | 16.7% | 18.8% |
| |
|---|
| Median (34 companies) | 9.4% | 10.5% | 10.6% | 10.5% | 15.3% |
|---|
| Ultramarine & Pigments ($ULTRAMAR) | 18.0% | 15.5% | 17.4% | 17.2% | 17.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Plastiblends India ($PLASTIBLEN) | 2.1% | 1.9% | 0.9% | 4.0% | 15.6% |
| Camlin Fine Sciences ($CAMLINFIN) | 4.3% | 5.7% | 7.1% | 5.1% | 13.7% |
| Vinati Organics ($VINATIORGA) | 13.6% | 28.2% | 4.2% | 7.4% | 12.1% |
| Dai-Ichi Karkaria ($DAICHI) | 3.2% | - | - | 1.6% | 10.3% |
| Solar Industries India ($SOLARINDS) | 13.0% | 9.9% | 12.3% | 10.3% | 9.6% |
| |
|---|
| Median (14 companies) | 4.9% | 4.7% | 4.5% | 5.2% | 8.7% |
|---|
| Ultramarine & Pigments ($ULTRAMAR) | 7.6% | 2.5% | 3.4% | 1.7% | 7.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | 23.3% |
| 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% |
| Plastiblends India ($PLASTIBLEN) | 18.3% | 15.8% | 24.0% | 24.5% | 22.8% |
| |
|---|
| Median (37 companies) | 14.7% | 14.5% | 11.1% | 16.7% | 21.2% |
|---|
| Ultramarine & Pigments ($ULTRAMAR) | 20.0% | 16.3% | 20.8% | 25.7% | 30.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 |
| Anil ($ANILLTD) | 2.2x | 3.4x | 3.8x | 4.0x | 4.2x |
| Oricon Enterprises ($ORICON) | 1.2x | 1.0x | 1.7x | 3.2x | - |
| Sudarshan Chemical Industries ($SUDARSCHEM) | 2.4x | 5.1x | 3.2x | 3.2x | 2.4x |
| |
|---|
| Median (32 companies) | 1.5x | 1.8x | 1.7x | 0.0x | 0.0x |
|---|
| Ultramarine & Pigments ($ULTRAMAR) | 0.2x | 0.1x | -0.1x | -0.5x | -0.2x |
