Sunteck Realty revenue surged on 160% while EBITDA Margin dropped on 12.4 pp from 44.2% to 31.8%
31-05-2016 • About Sunteck Realty (
$SUNTECK) • By InTwits
Sunteck Realty reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sunteck Realty is a fast growth stock: FY2016 revenue growth was 160%, 5 year revenue CAGR was 108% at FY2016 ROIC 9.0%
- Sunteck Realty has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.5%. At the same time it's a lot of higher than industry average of 27.6%.
- CAPEX is quite volatile: ₹14m in FY2016, ₹18m in FY2015, ₹10m in FY2014, ₹6m in FY2013, ₹17m in FY2012
- The company has business model with low profitability: ROIC is 9.0%
- It operates with high leverage: Net Debt/EBITDA is 4.6x while industry average is 10.8x
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 160%. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 12.4 pp from 44.2% to 31.8% in FY2016.
Net Income margin decreased slightly on 1.8 pp from 22.5% to 20.7% in FY2016.
Investments (CAPEX, working capital and M&A)
Sunteck Realty's CAPEX/Revenue was 0.17% in FY2016. CAPEX/Revenue decreased slightly on 1.7 pp from 1.9% in FY2013 to 0.17% in FY2016. For the last three years the average CAPEX/Revenue was 0.29%.
Return on investment
The company operates at low ROIC (9.0%) and ROE (10.5%). ROIC increased on 2.1 pp from 6.8% to 9.0% in FY2016. ROE increased on 4.0 pp from 6.5% to 10.5% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.6x and Debt / EBITDA is 5.0x. Net Debt / EBITDA dropped on 2.6x from 7.2x to 4.6x in FY2016. Debt jumped on 16.2% while cash dropped on 14.8%.
Sunteck Realty has short term refinancing risk: cash is only 7.7% of short term debt.
Valuation and dividends
The company's trades at EV/EBITDA 10.1x and P/E 8.4x while industy averages are 17.8x and 21.9x. Sunteck Realty's EV/(EBITDA-CAPEX) is 10.1x with the industry average at 22.8x.
Financial and operational results
Sunteck Realty ($SUNTECK) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 170 | 302 | 9,256 | 3,028 | 7,865 | 159.7% |
| EBITDA | 56 | 55 | 2,801 | 1,339 | 2,500 | 86.7% |
| Net Income | 31 | 40 | 1,510 | 682 | 1,628 | 138.8% |
Balance Sheet
|
|---|
| Cash | 238 | 336 | 122 | 1,092 | 931 | -14.8% |
| Short Term Debt | 4,938 | 5,117 | 5,958 | 10,705 | 12,087 | 12.9% |
| Long Term Debt | 1 | 1 | 2 | 1 | 350 | 53,277.9% |
Cash flow
|
|---|
| Capex | 17 | 6 | 10 | 18 | 14 | -22.7% |
Ratios
|
|---|
| Revenue growth | -16.0% | 77.7% | 2,963.6% | -67.3% | 159.7% | |
| EBITDA growth | -18.2% | -1.6% | 5,010.2% | -52.2% | 86.7% | |
|
|---|
| EBITDA Margin | 32.8% | 18.1% | 30.3% | 44.2% | 31.8% | -12.4% |
| Net Income Margin | 18.3% | 13.3% | 16.3% | 22.5% | 20.7% | -1.8% |
| CAPEX, % of revenue | 9.9% | 1.9% | 0.1% | 0.6% | 0.2% | -0.4% |
|
|---|
| ROIC | 0.4% | 0.4% | 24.5% | 6.8% | 9.0% | 2.1% |
| ROE | 0.5% | 0.7% | 26.8% | 6.5% | 10.5% | 4.0% |
| Net Debt/EBITDA | 84.4x | 87.2x | 2.1x | 7.2x | 4.6x | -2.6x |
Peers in Realty
Below we provide Sunteck Realty benchmarking against other companies in Realty 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 |
|---|
| Pvp Ventures ($PVP) | - | - | 32.9% | -15.9% | 177.3% |
| Ajmera Realty & Infra India ($AJMERA) | - | -61.7% | -1.8% | 109.9% | 92.0% |
| Peninsula Land ($PENINLAND) | - | 39.2% | -62.3% | -42.4% | 90.2% |
| Oberoi Realty ($OBEROIRLTY) | - | 27.3% | -23.4% | 14.1% | 53.7% |
| Nila Infrastructures ($NILA) | - | - | - | 28.7% | 47.2% |
| |
|---|
| Median (30 companies) | -7.1% | 3.4% | -4.5% | 13.2% | 1.2% |
|---|
| Sunteck Realty ($SUNTECK) | - | 77.7% | 2,963.6% | -67.3% | 159.7% |
Top companies by Gross margin, %
| Top | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Godrej Properties ($GODREJPROP) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
| |
|---|
| Median (1 company) | 24.9% | 33.3% | 28.9% | 19.4% | 14.7% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Hubtown ($HUBTOWN) | 53.3% | 72.4% | 67.6% | 82.4% | - |
| Housing Development & Infrastructure ($HDIL) | 75.8% | 40.6% | 102.5% | 78.9% | 68.4% |
| Tci Developers ($TCIDEVELOP) | - | - | - | 75.9% | - |
| Orbit Corporation ($ORBITCORP) | 42.4% | 53.3% | -127.2% | 69.8% | - |
| Oberoi Realty ($OBEROIRLTY) | 59.3% | 58.9% | 54.5% | 56.4% | 47.7% |
| |
|---|
| Median (43 companies) | 19.4% | 13.4% | 19.8% | 19.4% | 16.3% |
|---|
| Sunteck Realty ($SUNTECK) | 32.8% | 18.1% | 30.3% | 44.2% | 31.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Prozone Intu Properties ($PROZONINTU) | - | - | - | 89.5% | - |
| Ashiana Housing ($ASHIANA) | - | - | - | 26.7% | - |
| Brigade Enterprises ($BRIGADE) | 45.7% | 10.7% | 17.0% | 18.5% | 56.3% |
| Prestige Estates Projects ($PRESTIGE) | 37.7% | 30.2% | 18.8% | 11.6% | 11.2% |
| Parsvnath Developers ($PARSVNATH) | 15.9% | - | 11.6% | 10.6% | 15.6% |
| |
|---|
| Median (30 companies) | 4.7% | 2.6% | 3.7% | 2.5% | 2.9% |
|---|
| Sunteck Realty ($SUNTECK) | 9.9% | 1.9% | 0.1% | 0.6% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ahluwalia Contracts (India) ($AHLUCONT) | -3.2% | -15.8% | 5.6% | 21.2% | 27.1% |
| Ashiana Housing ($ASHIANA) | 34.1% | 6.6% | 5.8% | 6.0% | 20.4% |
| B.L.Kashyap And Sons ($BLKASHYAP) | 4.4% | 6.9% | 2.6% | -2.6% | 20.2% |
| Ajmera Realty & Infra India ($AJMERA) | 6.6% | 2.3% | 2.4% | 8.3% | 14.2% |
| Brigade Enterprises ($BRIGADE) | 4.5% | 6.2% | 9.3% | 10.5% | 10.9% |
| |
|---|
| Median (44 companies) | 5.9% | 5.1% | 5.6% | 6.8% | 6.4% |
|---|
| Sunteck Realty ($SUNTECK) | 0.4% | 0.4% | 24.5% | 6.8% | 9.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Nitesh Estates ($NITESHEST) | 225.8x | - | 5.1x | 5.9x | 151.9x |
| D B Realty ($DBREALTY) | 13.2x | 135.4x | 14.0x | 54.8x | 51.1x |
| Parsvnath Developers ($PARSVNATH) | 5.1x | 4.7x | 14.6x | 9.0x | 36.3x |
| Vipul ($VIPUL) | 0.7x | 3.0x | 10.8x | 26.0x | 27.7x |
| D.S.Kulkarni Developers ($DSKULKARNI) | 56.4x | 16.0x | 12.2x | 9.8x | 19.6x |
| |
|---|
| Median (32 companies) | 5.1x | 4.8x | 5.0x | 4.0x | 4.1x |
|---|
| Sunteck Realty ($SUNTECK) | 84.4x | 87.2x | 2.1x | 7.2x | 4.6x |
