Control Print is a growth stock to keep your eyes on
02-06-2016 • About Control Print (
$CONTROLPR) • By InTwits
Control Print is an attractive growth stock in Containers & Packaging industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Control Print showed fast growth in the last financial year. Control Print's revenue surged on 17.9% in FY2016. At the same time the company well managed its profitability and showed even faster growth in EBITDA of 27.4% for the same period.
In the longer period the company showed fast revenue growth of 18.5% from FY2013 to FY2016 annually. EBITDA surged on 33.3% from FY2013 to FY2016 annually.
Control Print ($CONTROLPR) financials for the last 5 years
| mln. INR | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 665 | 798 | 911 | 1,128 | 1,330 |
|---|
| Revenue growth, % | | 20.0% | 14.1% | 23.9% | 17.9% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 93 | 153 | 205 | 285 | 363 |
|---|
| EBITDA growth, % | | 65.8% | 33.6% | 39.0% | 27.4% |
|---|
| EBITDA margin, % | 13.9% | 19.2% | 22.5% | 25.2% | 27.3% |
|---|
| Net Income | 80 | 122 | 138 | 189 | 261 |
|---|
| Net Income margin, % | 12.0% | 15.2% | 15.1% | 16.7% | 19.7% |
|---|
| |
| CAPEX | 20 | 40 | 69 | 135 | 119 |
|---|
| CAPEX/Revenue, % | 2.96% | 5.04% | 7.54% | 11.9% | 8.94% |
|---|
| Debt | 30 | 30 | 53 | 82 | 131 |
|---|
| Cash | 7 | 3 | 4 | 5 | 6 |
|---|
| Net Debt/EBITDA | 0.2x | 0.2x | 0.2x | 0.3x | 0.3x |
|---|
| |
| ROIC, % | | 19.7% | 22.2% | 25.2% | 26.2% |
|---|
| ROE, % | | 18.6% | 17.8% | 20.5% | 23.7% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. The company's EBITDA margin increased on 2.10 pp from 25.2% to 27.3% in FY2016. In the longer period EBITDA margin surged on 8.10 pp from 19.2% in FY2013 to 27.3% in FY2016.
We call Control Print an attractive growth stock as together with the growth it delivers high ROIC at 26.2%. During the last three years it surged - it was 19.7% in FY2013. For the last three years the average ROIC was 24.6%.
The company's Net Income margin surged on 3 pp from 16.7% to 19.7% in FY2016. If we look for the longer period Control Print's Net Income margin surged on 4.50 pp from 15.2% in FY2013 to 19.7% in FY2016.
Control Print operates at ROE of 23.7%. Average ROE for the last three years was 20.7%.
Capital expenditures (CAPEX)
To fuel this fast growth Control Print had to invest in CAPEX.Control Print's CAPEX/Revenue was 8.94% in FY2016. The company showed fast CAPEX/Revenue growth of 3.91 pp from 5.04% in FY2013 to 8.94% in FY2016. For the last three years the average CAPEX/Revenue was 9.48%.
Leverage (Debt)
Having such a fast growth profile Control Print keeps low debt level at 0.3x Net Debt/EBITDA. In the longer period the company showed fast leverage growth of 0.17x from 0.18x in FY2013 to 0.34x in FY2016.
Peers in Containers & Packaging
Below you can find Control Print benchmarking vs. other companies in Containers & Packaging 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 |
|---|
| Shri Jagdamba Polymers ($SHRJAGP) | 35.5% | 38.3% | 21.7% | 22.7% | |
| Kg Petrochem ($KGPETRO) | 16.1% | 24.0% | 20.9% | 22.4% | |
| Kanpur Plastipack ($KANPRPLA) | | -4.6% | 21.1% | 15.9% | -0.0% |
| Emmbi Industries ($EMMBI) | | 36.6% | 13.9% | 14.8% | 13.3% |
| Time Technoplast ($TIMETECHNO) | 19.8% | 17.6% | 21.6% | 13.3% | |
| |
|---|
| Median (19 companies) | 24.4% | 15.3% | 13.9% | 8.4% | -1.5% |
|---|
| Control Print ($CONTROLPR) | | 20.0% | 14.1% | 23.9% | 17.9% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Manaksia ($MANAKSIA) | 14.4% | 17.4% | 20.3% | 18.6% | |
| Essel Propack ($ESSELPRO) | 17.0% | 17.4% | 16.9% | 17.2% | 19.4% |
| Time Technoplast ($TIMETECHNO) | 15.9% | 16.2% | 14.1% | 13.7% | |
| Piramal Glass ($PIRAMGLAS) | 23.7% | 18.9% | 15.5% | 13.5% | |
| Kg Petrochem ($KGPETRO) | 16.0% | 12.8% | 14.7% | 12.5% | |
| |
|---|
| Median (22 companies) | 12.9% | 10.6% | 11.4% | 8.8% | 12.4% |
|---|
| Control Print ($CONTROLPR) | 13.9% | 19.2% | 22.5% | 25.2% | 27.3% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Essel Propack ($ESSELPRO) | 10.0% | 6.7% | 8.5% | 9.4% | 8.9% |
| Manaksia ($MANAKSIA) | 9.0% | 4.8% | 4.7% | 6.5% | |
| Piramal Glass ($PIRAMGLAS) | 20.7% | 6.0% | 7.7% | 4.6% | |
| Time Technoplast ($TIMETECHNO) | 17.9% | 11.1% | 6.2% | 4.2% | |
| Uflex ($UFLEX) | 23.0% | 11.8% | 3.5% | 3.6% | |
| |
|---|
| Median (6 companies) | 8.9% | 8.9% | 6.5% | 4.4% | 8.9% |
|---|
| Control Print ($CONTROLPR) | 3.0% | 5.0% | 7.5% | 11.9% | 8.9% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Essel Propack ($ESSELPRO) | 8.6% | 9.9% | 12.5% | 14.7% | 16.6% |
| Time Technoplast ($TIMETECHNO) | 12.8% | 13.4% | 12.0% | 12.9% | |
| Manaksia ($MANAKSIA) | 12.9% | 15.5% | 16.0% | 11.4% | |
| Uflex ($UFLEX) | 12.5% | 9.9% | 8.1% | 8.4% | |
| Piramal Glass ($PIRAMGLAS) | 16.1% | 11.0% | 7.6% | 7.0% | |
| |
|---|
| Median (32 companies) | 9.3% | 9.9% | 11.2% | 9.9% | 16.6% |
|---|
| Control Print ($CONTROLPR) | | 19.7% | 22.2% | 25.2% | 26.2% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Hindusthan National Glass & Industries ($HINDNATGLS) | 7.4x | 15.8x | 11.2x | 10.6x | |
| Piramal Glass ($PIRAMGLAS) | 3.1x | 4.1x | 4.3x | 4.2x | |
| Uflex ($UFLEX) | 2.7x | 3.0x | 3.2x | 2.8x | |
| Essel Propack ($ESSELPRO) | 3.2x | 2.9x | 2.6x | 2.2x | 1.6x |
| Time Technoplast ($TIMETECHNO) | 2.6x | 2.6x | 2.6x | 2.2x | |
| |
|---|
| Median (20 companies) | 3.2x | 3.5x | 2.0x | 0.0x | 0.0x |
|---|
| Control Print ($CONTROLPR) | 0.2x | 0.2x | 0.2x | 0.3x | 0.3x |
