Eye on Bliss Gvs Pharma as a growth stock
01-06-2016 • About Bliss Gvs Pharma (
$BLISSGVS) • By InTwits
Bliss Gvs Pharma is a growth stock in Personal Products industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Bliss Gvs Pharma showed growth in the last financial year. The company's revenue surged on 33.2% in FY2016. In addition to revenue Bliss Gvs Pharma also keeps delivering EBITDA growth. It was 50.7% in FY2016
If we look for the longer period the company showed fast revenue growth of 10.6% from FY2013 to FY2016 annually. EBITDA surged on 11.8% from FY2013 to FY2016 annually.
Bliss Gvs Pharma ($BLISSGVS) financials for the last 5 years
| mln. INR | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 2,671 | 3,966 | 3,446 | 4,031 | 5,367 |
|---|
| Revenue growth, % | | 48.5% | -13.1% | 17.0% | 33.2% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 728 | 1,116 | 721 | 1,035 | 1,559 |
|---|
| EBITDA growth, % | | 53.3% | -35.4% | 43.4% | 50.7% |
|---|
| EBITDA margin, % | 27.2% | 28.1% | 20.9% | 25.7% | 29.0% |
|---|
| Net Income | 525 | 577 | 410 | 599 | 825 |
|---|
| Net Income margin, % | 19.7% | 14.6% | 11.9% | 14.9% | 15.4% |
|---|
| |
| CAPEX | 233 | 199 | 574 | 281 | 133 |
|---|
| CAPEX/Revenue, % | 8.71% | 5.01% | 16.7% | 6.98% | 2.48% |
|---|
| Debt | 451 | 1,475 | 1,726 | 1,595 | 1,315 |
|---|
| Cash | 435 | 248 | 389 | 163 | 370 |
|---|
| Net Debt/EBITDA | 0.0x | 1.1x | 1.9x | 1.4x | 0.6x |
|---|
| |
| ROIC, % | | 30.5% | 13.4% | 18.0% | 24.7% |
|---|
| ROE, % | | 24.6% | 15.0% | 19.2% | 22.0% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. The company showed fast EBITDA margin growth of 3.30 pp from 25.7% to 29% in FY2016. In the longer period the company showed small growth in EBITDA margin of 0.900 pp from 28.1% in FY2013 to 29% in FY2016.
We call Bliss Gvs Pharma an attractive growth stock as together with the growth it delivers high ROIC at 24.7%. Three years ago it was higher at 30.5%. It's average ROIC for the last three years was 18.7%.
Bliss Gvs Pharma showed small growth in Net Income margin of 0.500 pp from 14.9% to 15.4% in FY2016. In the last 3 years Net Income margin increased on 0.800 pp from 14.6% in FY2013 to 15.4% in FY2016.
Bliss Gvs Pharma operates at ROE of 22.0%. For the last three years the average ROE was 18.8%.
Capital expenditures (CAPEX)
Bliss Gvs Pharma's CAPEX/Revenue was 2.48% in FY2016. The company showed big decline in CAPEX/Revenue of 2.53 pp from 5.01% in FY2013 to 2.48% in FY2016. Average CAPEX/Revenue for the last three years was 8.71%.
Leverage (Debt)
Having such a fast growth profile Bliss Gvs Pharma keeps low debt level at 0.6x Net Debt/EBITDA. In the last 3 years Bliss Gvs Pharma's leverage dropped on 0.49x from 1.10x in FY2013 to 0.61x in FY2016.
Valuation vs. comparable companies
The market closed today at 6.8x EV/EBITDA for Bliss Gvs Pharma which is 72.4% lower than 24.5x Personal Products peer group avearge calculated on the basis of 21 companies. At the end of trading day today Bliss Gvs Pharma traded at 11.6x P/E which is 71.2% lower than 40.4x Personal Products peer group avearge calculated on the basis of 3 companies.
Peers in Personal Products
Below you can find Bliss Gvs Pharma benchmarking vs. other companies in Personal Products 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 |
|---|
| Emami ($EMAMILTD) | | 16.9% | 7.2% | 21.8% | 18.3% |
| Godrej Consumer Products ($GODREJCP) | | 31.7% | 18.6% | 8.7% | 8.7% |
| Dabur India ($DABUR) | | 16.3% | 15.0% | 10.3% | 8.0% |
| Marico ($MARICO) | | 15.5% | 2.0% | 22.3% | 7.0% |
| Bajaj Corp ($BAJAJCORP) | | 28.2% | 10.7% | 22.9% | 6.2% |
| |
|---|
| Median (7 companies) | 29.4% | 17.2% | 11.9% | 12.6% | 7.0% |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | | 48.5% | -13.1% | 17.0% | 33.2% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Bajaj Corp ($BAJAJCORP) | 24.6% | 28.4% | 27.7% | 29.0% | 31.2% |
| Cupid ($CUPID) | | | | 28.9% | |
| Emami ($EMAMILTD) | 20.9% | 20.5% | 24.3% | 25.0% | 26.1% |
| Procter & Gamble Hygiene & Health Care ($PGHH) | 16.3% | 15.4% | 20.7% | 21.3% | |
| Colgate-Palmolive (India) ($COLPAL) | 21.7% | 21.0% | 18.6% | 20.7% | 22.6% |
| |
|---|
| Median (10 companies) | 17.2% | 16.0% | 17.6% | 19.0% | 18.3% |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | 27.2% | 28.1% | 20.9% | 25.7% | 29.0% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Emami ($EMAMILTD) | 8.0% | 5.0% | 3.6% | 5.0% | 69.3% |
| Colgate-Palmolive (India) ($COLPAL) | 3.8% | 4.9% | 9.0% | 7.5% | 6.6% |
| Dabur India ($DABUR) | 4.4% | 3.9% | 3.0% | 3.4% | 2.6% |
| Hindustan Unilever ($HINDUNILVR) | 1.2% | 1.7% | 2.1% | 1.9% | 2.5% |
| Godrej Consumer Products ($GODREJCP) | 3.2% | 4.1% | 1.8% | 2.6% | 2.3% |
| |
|---|
| Median (7 companies) | 4.0% | 4.0% | 3.3% | 3.0% | 2.5% |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | 8.7% | 5.0% | 16.7% | 7.0% | 2.5% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Hindustan Unilever ($HINDUNILVR) | 99.9% | 114.4% | 133.0% | 133.9% | 136.2% |
| Colgate-Palmolive (India) ($COLPAL) | 121.4% | 120.4% | 104.4% | 99.9% | 85.6% |
| Bajaj Corp ($BAJAJCORP) | | 36.9% | 36.2% | 46.5% | 54.8% |
| Cupid ($CUPID) | 6.0% | 8.5% | 3.1% | 35.1% | 46.1% |
| Marico ($MARICO) | 23.2% | 22.6% | 26.9% | 36.1% | 40.6% |
| |
|---|
| Median (9 companies) | 28.1% | 29.5% | 33.5% | 40.1% | 43.3% |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | | 30.5% | 13.4% | 18.0% | 24.7% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Godrej Consumer Products ($GODREJCP) | 1.6x | 1.7x | 1.5x | 1.7x | 1.4x |
| Emami ($EMAMILTD) | 0.5x | -0.5x | -0.5x | -0.6x | 0.8x |
| Dabur India ($DABUR) | 0.8x | 1.2x | 0.3x | 0.5x | 0.4x |
| Marico ($MARICO) | 1.5x | 1.3x | 0.9x | 0.3x | 0.0x |
| Hindustan Unilever ($HINDUNILVR) | -0.3x | -0.1x | -0.2x | -0.2x | -0.1x |
| |
|---|
| Median (8 companies) | 0.6x | -0.0x | -0.2x | -0.2x | -0.0x |
|---|
| Bliss Gvs Pharma ($BLISSGVS) | 0.0x | 1.1x | 1.9x | 1.4x | 0.6x |
