Nitin Fire Protection Industries CAPEX jumped on 538% and Revenue jumped on 29.8%
31-05-2016 • About Nitin Fire Protection Industries (
$NITINFIRE) • By InTwits
Nitin Fire Protection Industries reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Nitin Fire Protection Industries is a fast growth stock: FY2016 revenue growth was 29.8%, 5 year revenue CAGR was 27.6% at FY2016 ROIC 13.2%
- Nitin Fire Protection Industries has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.9%. At the same time it's in pair with industry average of 5.2%
- CAPEX is quite volatile: ₹1,720m in FY2016, ₹270m in FY2015, ₹260m in FY2014, ₹345m in FY2013, ₹161m in FY2012
- The company has highly profitable business model: ROIC is 13.2%
- It operates with high leverage: Net Debt/EBITDA is 3.1x while industry average is 0.3x
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 jumped on 29.8%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 5.4 pp from 26.7% to 21.3% in FY2016. During the last 5 years EBITDA Margin bottomed in FY2015 at 10.4%.
Net Income margin increased slightly on 0.77 pp from 5.9% to 6.7% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2015 at 5.9%.
Investments (CAPEX, working capital and M&A)
Nitin Fire Protection Industries's CAPEX/Revenue was 11.6% in FY2016. CAPEX/Revenue increased on 6.7 pp from 4.9% in FY2013 to 11.6% in FY2016. For the last three years the average CAPEX/Revenue was 5.5%. The company invested a big chunk of EBITDA (99.9%) to CAPEX to fuel its growth.
Return on investment
The company operates at good ROIC (13.2%) and ROE (19.2%). ROIC increased slightly on 1.1 pp from 12.1% to 13.2% in FY2016. ROE increased on 2.6 pp from 16.6% to 19.2% in FY2016.
Leverage (Debt)
Debt level is 3.1x Net Debt / EBITDA and 3.2x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 3.7x to 3.1x in FY2016. Debt jumped on 10.5% while cash dropped on 74.2%.
Nitin Fire Protection Industries has short term refinancing risk: cash is only 3.2% of short term debt.
Valuation and dividends
Nitin Fire Protection Industries's trades at EV/EBITDA 8.3x and P/E 9.1x while industy averages are 17.8x and 21.9x. Nitin Fire Protection Industries's EV/(EBITDA-CAPEX) is 6,420.8x with the industry average at 22.8x.
Financial and operational results
Nitin Fire Protection Industries ($NITINFIRE) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 5,360 | 7,047 | 10,161 | 11,403 | 14,797 | 29.8% |
| EBITDA | 761 | 873 | 1,176 | 1,186 | 1,722 | 45.2% |
| Net Income | 440 | 570 | 665 | 671 | 985 | 46.8% |
Balance Sheet
|
|---|
| Cash | 206 | 494 | 367 | 610 | 157 | -74.2% |
| Short Term Debt | 2,927 | 3,529 | 3,924 | 4,731 | 4,948 | 4.6% |
| Long Term Debt | 0 | 1 | 0 | 288 | 598 | 107.4% |
Cash flow
|
|---|
| Capex | 161 | 345 | 260 | 270 | 1,720 | 538.0% |
Ratios
|
|---|
| Revenue growth | 22.3% | 31.5% | 44.2% | 12.2% | 29.8% | |
| EBITDA growth | 11.7% | 14.6% | 34.7% | 0.9% | 45.2% | |
|
|---|
| EBITDA Margin | 14.2% | 12.4% | 11.6% | 10.4% | 11.6% | 1.2% |
| Net Income Margin | 8.2% | 8.1% | 6.5% | 5.9% | 6.7% | 0.8% |
| CAPEX, % of revenue | 3.0% | 4.9% | 2.6% | 2.4% | 11.6% | 9.3% |
|
|---|
| ROIC | | 13.2% | 14.7% | 12.1% | 13.2% | 1.1% |
| ROE | 17.8% | 19.5% | 19.3% | 16.6% | 19.2% | 2.6% |
| Net Debt/EBITDA | 3.6x | 3.5x | 3.0x | 3.7x | 3.1x | -0.6x |
Peers in Industrial Machinery
Below we provide Nitin Fire Protection Industries benchmarking against other companies in Industrial Machinery 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 |
|---|
| Batliboi ($BATLIBOI) | - | - | - | -54.5% | 74.2% |
| Wpil ($WPIL) | - | 38.4% | 0.3% | -5.5% | 51.3% |
| Revathi Equipment ($REVATHI) | - | 10.3% | -19.9% | -7.2% | 50.3% |
| Lloyd Electric & Engineering ($LLOYDELENG) | - | - | - | 22.3% | 27.3% |
| Manugraph India ($MANUGRAPH) | - | -17.4% | -19.8% | -14.6% | 22.6% |
| |
|---|
| Median (27 companies) | 2.7% | 2.2% | 0.3% | 2.8% | 6.7% |
|---|
| Nitin Fire Protection Industries ($NITINFIRE) | - | 31.5% | 44.2% | 12.2% | 29.8% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Bell Agromachina ($BELAGRO) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (1 company) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Texmaco Infrastructure & Holdings ($TEXINFRA) | - | - | - | 40.5% | - |
| Dhp India ($DHPIND) | - | - | - | 26.3% | - |
| Shilp Gravures ($SHILGRAVQ) | - | - | - | 19.4% | - |
| Solitaire Machine Tools ($SOLIMAC) | - | - | - | 19.4% | - |
| Wendt (India) ($WENDT) | 28.3% | 21.6% | 18.6% | 19.0% | 16.5% |
| |
|---|
| Median (46 companies) | 11.3% | 9.5% | 10.5% | 10.7% | 9.8% |
|---|
| Nitin Fire Protection Industries ($NITINFIRE) | 14.2% | 12.4% | 11.6% | 10.4% | 11.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Texmaco Infrastructure & Holdings ($TEXINFRA) | - | - | - | 14.0% | - |
| Shakti Pumps (India) ($SHAKTIPUMP) | 5.8% | 19.0% | 6.1% | 9.9% | 7.5% |
| Wendt (India) ($WENDT) | 13.5% | 9.0% | 8.8% | 9.4% | 9.3% |
| Ingersoll-Rand (India) ($INGERRAND) | 4.3% | 10.9% | 3.6% | 9.2% | 6.7% |
| Kabra Extrusiontechnik ($KABRAEXTRU) | 6.5% | 1.8% | 0.5% | 8.8% | 16.2% |
| |
|---|
| Median (23 companies) | 5.8% | 4.4% | 3.0% | 3.3% | 3.2% |
|---|
| Nitin Fire Protection Industries ($NITINFIRE) | 3.0% | 4.9% | 2.6% | 2.4% | 11.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Greaves Cotton ($GREAVESCOT) | - | 24.8% | 16.3% | 26.7% | 25.7% |
| Honda Siel Power Products ($HONDAPOWER) | 16.9% | 8.8% | 11.5% | 15.3% | 18.3% |
| Lakshmi Machine Works ($LAXMIMACH) | 18.0% | 11.7% | 16.2% | 17.6% | 18.2% |
| Kabra Extrusiontechnik ($KABRAEXTRU) | - | - | 11.9% | 13.9% | 17.0% |
| Ion Exchange (India) ($IONEXCHANG) | 11.0% | 15.1% | 8.8% | 13.1% | 16.4% |
| |
|---|
| Median (50 companies) | 13.1% | 10.9% | 9.7% | 13.0% | 10.8% |
|---|
| Nitin Fire Protection Industries ($NITINFIRE) | - | 13.2% | 14.7% | 12.1% | 13.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Wpil ($WPIL) | 2.4x | 2.3x | 2.2x | 0.8x | 5.4x |
| Kirloskar Brothers ($KIRLOSBROS) | 2.4x | 1.3x | 1.1x | 1.5x | 4.7x |
| Forbes & Company ($FORBESCO) | 2.2x | 3.3x | 4.7x | 6.3x | 4.3x |
| Elecon Engineering Co ($ELECON) | 3.0x | 3.2x | 4.0x | 3.1x | 3.9x |
| Dynamatic Technologies ($DYNAMATECH) | 5.0x | 4.1x | 3.4x | 2.7x | 3.8x |
| |
|---|
| Median (38 companies) | 1.1x | 1.3x | 0.0x | 0.0x | 0.0x |
|---|
| Nitin Fire Protection Industries ($NITINFIRE) | 3.6x | 3.5x | 3.0x | 3.7x | 3.1x |
