Vidhi Dyestuffs Manufacturing CAPEX jumped on 62.6% while Revenue decreased slightly on 1.4%
27-05-2016 • About Vidhi Dyestuffs Manufacturing (
$VIDHIDYE) • By InTwits
Vidhi Dyestuffs Manufacturing reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- The company has highly profitable business model: ROIC is 26.4%
- It operates with high leverage: Net Debt/EBITDA is 1.3x while industry average is 1.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue decreased slightly on 1.4%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.1 pp from 12.7% to 15.9% in FY2016.
Net Income margin increased slightly on 1.4 pp from 6.8% to 8.2% in FY2016. Net Income margin stuck to a growing trend at 1.4 pp per annum in FY2012-FY2016.
Investments (CAPEX, working capital and M&A)
Vidhi Dyestuffs Manufacturing's CAPEX/Revenue was 8.9% in FY2016. The company showed CAPEX/Revenue growth of 8.9 pp from in FY2013 to 8.9% in FY2016. Vidhi Dyestuffs Manufacturing invested a big chunk of EBITDA (56.3%) to CAPEX which didn't stop revenue from falling.
Return on investment
The company operates at high and attractive ROIC (26.4%) and ROE (29.4%).
Leverage (Debt)
Company's Net Debt / EBITDA is 1.3x and Debt / EBITDA is 1.7x. Net Debt / EBITDA dropped on 0.4x from 1.7x to 1.3x in FY2016. Debt increased on 3.1% while cash jumped on 50.3%.
Vidhi Dyestuffs Manufacturing has short term refinancing risk: cash is only 24.0% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 10.9x and P/E 18.5x while industy averages are 17.8x and 21.9x.
Financial and operational results
Vidhi Dyestuffs Manufacturing ($VIDHIDYE) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 1,125 | 1,178 | 1,408 | 1,830 | 1,804 | -1.4% |
| EBITDA | 97 | 123 | | 233 | 286 | 22.6% |
| Net Income | 34 | 41 | 60 | 124 | 147 | 18.6% |
Balance Sheet
|
|---|
| Cash | 52 | 38 | | 68 | 102 | 50.3% |
| Short Term Debt | 333 | 384 | | 442 | 427 | -3.3% |
| Long Term Debt | 40 | 27 | | 20 | 49 | 145.3% |
Cash flow
|
|---|
| Capex | 73 | | | 99 | 161 | 62.6% |
Ratios
|
|---|
| Revenue growth | 14.1% | 4.7% | 19.5% | 30.0% | -1.4% | |
| EBITDA growth | 5.7% | 26.3% | | | 22.6% | |
|
|---|
| EBITDA Margin | 8.7% | 10.5% | | 12.7% | 15.9% | 3.1% |
| Net Income Margin | 3.0% | 3.5% | 4.2% | 6.8% | 8.2% | 1.4% |
| CAPEX, % of revenue | 6.5% | | | 5.4% | 8.9% | 3.5% |
|
|---|
| ROIC | 14.7% | 15.0% | | | 26.4% | |
| ROE | 12.3% | 13.5% | | | 29.4% | |
| Net Debt/EBITDA | 3.3x | 3.0x | | 1.7x | 1.3x | -0.4x |
Peers in Specialty Chemicals
Below we provide Vidhi Dyestuffs Manufacturing 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, %
| 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% | - |
| 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 ($NITTAGELA) | - | 27.8% | -5.5% | 21.2% | -0.5% |
| |
|---|
| Median (29 companies) | 17.4% | 14.1% | 11.3% | 10.9% | -0.5% |
|---|
| Vidhi Dyestuffs Manufacturing ($VIDHIDYE) | - | 4.7% | 19.5% | 30.0% | -1.4% |
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% |
| Ultramarine & Pigments ($ULTRAMAR) | 18.0% | 15.5% | 17.4% | 17.2% | 17.2% |
| |
|---|
| Median (34 companies) | 10.6% | 11.2% | 10.6% | 10.5% | 15.3% |
|---|
| Vidhi Dyestuffs Manufacturing ($VIDHIDYE) | 8.7% | 10.5% | - | 12.7% | 15.9% |
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 ($SOLARINDS) | 13.0% | 9.9% | 12.3% | 10.3% | 9.6% |
| |
|---|
| Median (14 companies) | 4.9% | 4.6% | 4.4% | 4.9% | 8.1% |
|---|
| Vidhi Dyestuffs Manufacturing ($VIDHIDYE) | 6.5% | - | - | 5.4% | 8.9% |
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% |
| Ultramarine & Pigments ($ULTRAMAR) | 20.0% | 16.3% | 20.8% | 25.7% | 30.2% |
| |
|---|
| Median (37 companies) | 15.3% | 14.5% | 11.2% | 17.1% | 21.2% |
|---|
| Vidhi Dyestuffs Manufacturing ($VIDHIDYE) | 14.7% | 15.0% | - | - | 26.4% |
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 ($SUDARSCHEM) | 2.4x | 5.1x | 3.2x | 3.2x | 2.4x |
| |
|---|
| Median (32 companies) | 1.5x | 1.7x | 1.7x | 0.0x | 0.0x |
|---|
| Vidhi Dyestuffs Manufacturing ($VIDHIDYE) | 3.3x | 3.0x | - | 1.7x | 1.3x |
