Page Industries's three year revenue growth was 27.4% and EBITDA growth was 28.8% per year
31-05-2016 • About Page Industries (
$PAGEIND) • By InTwits
Page Industries is an attractive growth stock in Other Apparels & Accessories industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Page Industries showed fast growth in the last financial year. Page Industries's revenue surged on 15.5% in FY2016. Together with revenue growth Page Industries also managed to keep EBITDA growth. EBITDA grew 18.1% for the same period.
In the last 3 years the company showed fast revenue growth of 27.4% from FY2013 to FY2016 annually. EBITDA surged on 28.8% from FY2013 to FY2016 annually.
Page Industries ($PAGEIND) financials for the last 5 years
| mln. INR | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 6,834 | 8,635 | 11,877 | 15,434 | 17,834 |
|---|
| Revenue growth, % | | 26.3% | 37.5% | 30.0% | 15.5% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 1,441 | 1,768 | 2,551 | 3,194 | 3,773 |
|---|
| EBITDA growth, % | | 22.6% | 44.3% | 25.2% | 18.1% |
|---|
| EBITDA margin, % | 21.1% | 20.5% | 21.5% | 20.7% | 21.2% |
|---|
| Net Income | 900 | 1,125 | 1,538 | 1,960 | 2,327 |
|---|
| Net Income margin, % | 13.2% | 13.0% | 12.9% | 12.7% | 13.0% |
|---|
| |
| CAPEX | 271 | 450 | 526 | 549 | 264 |
|---|
| CAPEX/Revenue, % | 3.97% | 5.21% | 4.43% | 3.55% | 1.48% |
|---|
| Debt | 759 | 1,007 | 1,632 | 1,573 | 949 |
|---|
| Cash | 20 | 31 | 34 | 43 | 85 |
|---|
| Net Debt/EBITDA | 0.5x | 0.6x | 0.6x | 0.5x | 0.2x |
|---|
| |
| ROIC, % | 54.9% | 58.5% | 61.6% | 59.2% | 60.1% |
|---|
| ROE, % | 62.1% | 59.3% | 61.2% | 58.0% | 52.2% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. Page Industries showed small growth in EBITDA margin of 0.500 pp from 20.7% to 21.2% in FY2016. If we look for the longer period the company's EBITDA margin increased slightly on 0.700 pp from 20.5% in FY2013 to 21.2% in FY2016.
Page Industries shows attractive ROIC at 60.1% for the last 12 months which assumes stable development model. Three years ago it was a bit lower at 58.5%. For the last three years the average ROIC was 60.3%.
The company showed small growth in Net Income margin of 0.300 pp from 12.7% to 13% in FY2016. In the longer period Page Industries's Net Income margin didn't change on 0 pp from 13% in FY2013 to 13% in FY2016.
Page Industries operates at ROE of 52.2%. For the last three years the average ROE was 57.1%.
Capital expenditures (CAPEX)
In FY2016 the company had CAPEX/Revenue of 1.48%. Page Industries's CAPEX/Revenue dropped on 3.74 pp from 5.21% in FY2013 to 1.48% in FY2016. For the last three years the average CAPEX/Revenue was 3.15%.
Leverage (Debt)
The company has low debt level at 0.2x Net Debt/EBITDA - at the same time with high growth. In the last 3 years Page Industries's leverage dropped on 0.32x from 0.55x in FY2013 to 0.23x in FY2016.
Valuation vs. comparable companies
At the end of trading day today Page Industries traded at 40.4x EV/EBITDA which is 64.7% higher than 24.5x Other Apparels & Accessories peer group avearge calculated on the basis of 133 companies. The company trades at 65.2x P/E which is not surprisingly 154% higher than 25.7x Other Apparels & Accessories industry avearge calculated based on 12 companies.
Management team
Vedji Ticku runs Page Industries as a CEO and Pius Thomas is a CFO.
Peers in Other Apparels & Accessories
Below you can find Page Industries benchmarking vs. other companies in Other Apparels & Accessories 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Bhartiya International ($BIL) | 28.4% | 20.9% | 36.7% | 34.7% | |
| Mini Diamonds (India) ($MINID) | | 59.6% | 117.1% | 26.9% | 3.1% |
| Cantabil Retail India ($CANTABIL) | -11.6% | -30.4% | -3.3% | 25.0% | |
| Thangamayil Jewellery ($THANGAMAYL) | 72.0% | 34.6% | -21.8% | 19.3% | |
| Shrenuj & Co ($SHRENUJ) | 28.3% | 22.6% | 20.2% | 18.1% | |
| |
|---|
| Median (23 companies) | 6.0% | 19.1% | 14.1% | -0.9% | 2.8% |
|---|
| Page Industries ($PAGEIND) | | 26.3% | 37.5% | 30.0% | 15.5% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Ceenik Exports (India) ($CEENIK) | | | | 27.2% | |
| Arrow Textiles ($ARROWTEX) | | | | 25.2% | |
| Banaras Beads ($BANARBEADS) | | | | 17.9% | |
| Rupa & Company ($RUPA) | 12.7% | 15.0% | 15.3% | 14.5% | |
| Ashapura Intimates Fashion ($AIFL) | 9.5% | 10.5% | 10.7% | 13.7% | |
| |
|---|
| Median (31 companies) | 7.5% | 5.5% | 5.4% | 4.8% | 3.9% |
|---|
| Page Industries ($PAGEIND) | 21.1% | 20.5% | 21.5% | 20.7% | 21.2% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Zodiac Clothing Co ($ZODIACLOTH) | 5.7% | 3.9% | 4.0% | 5.0% | |
| Pearl Global Industries ($PGIL) | 0.9% | 0.7% | 1.3% | 3.1% | |
| Rupa & Company ($RUPA) | 1.9% | 3.9% | 1.7% | 2.2% | |
| Bhartiya International ($BIL) | 4.5% | 3.9% | 1.8% | 2.1% | |
| Asian Star Co ($ASTAR) | 0.5% | 1.0% | 0.9% | 0.7% | 0.3% |
| |
|---|
| Median (10 companies) | 1.5% | 1.3% | 1.1% | 0.7% | 0.4% |
|---|
| Page Industries ($PAGEIND) | 4.0% | 5.2% | 4.4% | 3.6% | 1.5% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Ashapura Intimates Fashion ($AIFL) | 24.1% | 19.1% | 23.4% | 39.9% | |
| Rupa & Company ($RUPA) | 22.4% | 27.1% | 25.8% | 23.8% | |
| Tara Jewels ($TARAJEWELS) | 17.5% | 18.6% | 15.1% | 13.5% | 9.9% |
| Bhartiya International ($BIL) | 13.0% | 10.6% | 11.2% | 12.8% | |
| Asian Star Co ($ASTAR) | 6.6% | 6.9% | 8.5% | 8.2% | 6.6% |
| |
|---|
| Median (40 companies) | 9.3% | 7.2% | 10.9% | 7.3% | 6.6% |
|---|
| Page Industries ($PAGEIND) | 54.9% | 58.5% | 61.6% | 59.2% | 60.1% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Thangamayil Jewellery ($THANGAMAYL) | 2.2x | 2.6x | 11.9x | 61.2x | |
| Shrenuj & Co ($SHRENUJ) | 9.3x | 11.2x | 11.7x | 13.5x | |
| Gokaldas Exports ($GOKEX) | | | 3.6x | 10.4x | |
| Tribhovandas Bhimji Zaveri ($TBZ) | 1.6x | 2.7x | 4.1x | 6.6x | 16.2x |
| Asian Star Co ($ASTAR) | 7.1x | 7.1x | 5.9x | 4.8x | 5.2x |
| |
|---|
| Median (24 companies) | 2.3x | 2.9x | 0.0x | 0.2x | 0.0x |
|---|
| Page Industries ($PAGEIND) | 0.5x | 0.6x | 0.6x | 0.5x | 0.2x |
