Suprajit Engineering EBITDA jumped on 66.8% and Revenue surged on 55.7%
30-05-2016 • About Suprajit Engineering (
$SUPRAJIT) • By InTwits
Suprajit Engineering reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Suprajit Engineering is a fast growth stock: FY2016 revenue growth was 55.7%, 5 year revenue CAGR was 22.5% at FY2016 ROIC 25.1%
- EBITDA Margin is relatively stable: 17.4% in FY2016 vs. 16.2% in FY2015 vs. 16.2% in FY2012
- Suprajit Engineering has medium CAPEX intensity: 5 year average CAPEX/Revenue was 6.3%. At the same time it's in pair with industry average of 6.0%
- CAPEX is quite volatile: ₹360m in FY2016, ₹2,610m in FY2015, ₹392m in FY2014, ₹117m in FY2013, ₹83m in FY2012
- The company has highly profitable business model: ROIC is 25.1%
- It operates with high leverage: Net Debt/EBITDA is 1.5x while industry average is 0.6x
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 55.7%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 16.9% to 18.8% in FY2016.
Net Income margin decreased slightly on 0.67 pp from 8.2% to 7.6% in FY2016. During FY2012-FY2016 Net Income margin topped in FY2013 at 10.2% and was declining since that time.
Investments (CAPEX, working capital and M&A)
In FY2016 the company had CAPEX/Revenue of 5.7%. The company showed small CAPEX/Revenue decline of 1.5 pp from 7.2% in FY2013 to 5.7% in FY2016. It's average level of CAPEX/Revenue for the last three years was 5.7%.
Return on investment
The company operates at high and attractive ROIC (25.1%) and ROE (20.9%). ROIC increased on 2.2 pp from 22.9% to 25.1% in FY2016. ROE decreased slightly on 1.7 pp from 22.6% to 20.9% in FY2016. ROIC declined at -1.8 pp per annum in the last 5 years. ROE declined at -3.8 pp per annum in the last 5 years.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.5x and Debt / EBITDA is 1.6x. Net Debt / EBITDA dropped on 0.2x from 1.6x to 1.5x in FY2016. Debt jumped on 55.8% while cash surged on 229%. During FY2012-FY2016 Net Debt/EBITDA topped in FY2015 at 1.6x.
Suprajit Engineering has short term refinancing risk: cash is only 9.4% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 14.1x and P/E 29.1x while industy averages are 17.8x and 21.9x. The company's EV/(EBITDA-CAPEX) is 21.0x with the industry average at 22.8x.
Financial and operational results
Suprajit Engineering ($SUPRAJIT) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 4,226 | 4,625 | 5,452 | 6,118 | 9,525 | 55.7% |
| EBITDA | 687 | 786 | 940 | 991 | 1,654 | 66.8% |
| Net Income | 398 | 471 | 508 | 503 | 719 | 43.1% |
Balance Sheet
|
|---|
| Cash | 29 | 72 | 65 | 52 | 172 | 229.1% |
| Short Term Debt | 513 | 721 | 1,134 | 1,005 | 1,829 | 82.1% |
| Long Term Debt | 311 | 392 | 425 | 655 | 757 | 15.6% |
Cash flow
|
|---|
| Capex | 300 | 331 | 253 | 413 | 543 | 31.7% |
Ratios
|
|---|
| Revenue growth | 22.2% | 9.4% | 17.9% | 12.2% | 55.7% | |
| EBITDA growth | 20.7% | 14.4% | 19.6% | 5.5% | 66.8% | |
|
|---|
| EBITDA Margin | 16.2% | 17.0% | 17.2% | 16.2% | 17.4% | 1.2% |
| Net Income Margin | 9.4% | 10.2% | 9.3% | 8.2% | 7.6% | -0.7% |
| CAPEX, % of revenue | 7.1% | 7.2% | 4.6% | 6.7% | 5.7% | -1.0% |
|
|---|
| ROIC | 31.8% | 28.0% | 26.1% | 22.9% | 25.1% | 2.2% |
| ROE | 35.2% | 31.8% | 27.4% | 22.6% | 20.9% | -1.7% |
| Net Debt/EBITDA | 1.2x | 1.3x | 1.6x | 1.6x | 1.5x | -0.2x |
Peers in Auto Parts & Equipment
Below we provide Suprajit Engineering benchmarking against other companies in Auto Parts & Equipment 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 |
|---|
| Fiem Industries ($FIEMIND) | - | 13.4% | 18.7% | 14.5% | 19.4% |
| Ip Rings ($IPRINGLTD) | - | 2.4% | -0.1% | 19.5% | 16.7% |
| Amara Raja Batteries ($AMARAJABAT) | - | 25.1% | 16.1% | 22.6% | 11.4% |
| Spectra Industries ($SPECTRA) | - | 40.2% | -10.1% | 57.1% | 11.1% |
| Motherson Sumi Systems ($MOTHERSUMI) | - | 71.3% | 20.2% | 14.0% | 10.7% |
| |
|---|
| Median (35 companies) | 12.1% | 2.4% | 4.9% | 8.7% | 2.8% |
|---|
| Suprajit Engineering ($SUPRAJIT) | - | 9.4% | 17.9% | 12.2% | 55.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ist ($ISTLTD) | - | - | - | 71.6% | - |
| Tube Investments Of India ($TUBEINVEST) | 18.4% | 24.4% | 28.3% | 30.0% | 21.4% |
| Shivam Autotech ($SHIVAMAUTO) | 24.1% | 24.1% | 20.6% | 18.7% | 16.6% |
| Amara Raja Batteries ($AMARAJABAT) | 14.9% | 15.7% | 14.2% | 17.0% | 17.6% |
| Raunaq Automotive Components ($RAUNAQAU) | 10.2% | 10.5% | 12.0% | 15.1% | 13.1% |
| |
|---|
| Median (45 companies) | 10.8% | 9.8% | 10.1% | 9.9% | 10.8% |
|---|
| Suprajit Engineering ($SUPRAJIT) | 16.2% | 17.0% | 17.2% | 16.2% | 17.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 11.6% | 4.1% | 4.9% | 12.5% | 27.9% |
| Fiem Industries ($FIEMIND) | 12.5% | 4.7% | 6.7% | 7.2% | 11.2% |
| Amara Raja Batteries ($AMARAJABAT) | 3.7% | 2.5% | 10.9% | 9.6% | 11.0% |
| Steel Strips Wheels ($SSWL) | 13.3% | 11.4% | 5.8% | 4.5% | 9.7% |
| Jbm Auto ($JBMA) | 9.8% | 8.4% | - | 14.4% | 7.8% |
| |
|---|
| Median (22 companies) | 5.7% | 4.5% | 4.9% | 4.5% | 4.9% |
|---|
| Suprajit Engineering ($SUPRAJIT) | 7.1% | 7.2% | 4.6% | 6.7% | 5.7% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Amara Raja Batteries ($AMARAJABAT) | 32.1% | 34.5% | 30.3% | 35.4% | 33.7% |
| Motherson Sumi Systems ($MOTHERSUMI) | 13.5% | 16.5% | 25.0% | 24.9% | 25.1% |
| Gabriel India ($GABRIEL) | 19.9% | 15.5% | 18.0% | 24.0% | 25.0% |
| Fiem Industries ($FIEMIND) | 18.7% | 16.9% | 19.9% | 20.2% | 23.1% |
| Harita Seating Systems ($HARITASEAT) | 16.6% | 16.2% | 12.7% | 12.5% | 22.4% |
| |
|---|
| Median (48 companies) | 15.7% | 11.9% | 14.5% | 14.5% | 13.6% |
|---|
| Suprajit Engineering ($SUPRAJIT) | 31.8% | 28.0% | 26.1% | 22.9% | 25.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Shivam Autotech ($SHIVAMAUTO) | 2.0x | 1.5x | 1.5x | 2.2x | 4.3x |
| Steel Strips Wheels ($SSWL) | 5.4x | 6.3x | 6.5x | 5.6x | 4.2x |
| Jbm Auto ($JBMA) | 3.0x | 2.8x | 1.7x | 2.5x | 2.7x |
| Rico Auto Industries ($RICOAUTO) | 3.6x | 4.2x | 2.3x | 1.5x | 2.1x |
| Subros ($SUBROS) | 3.1x | 2.8x | 3.1x | 3.1x | 1.9x |
| |
|---|
| Median (39 companies) | 1.3x | 2.3x | 0.7x | 0.0x | 0.0x |
|---|
| Suprajit Engineering ($SUPRAJIT) | 1.2x | 1.3x | 1.6x | 1.6x | 1.5x |
