Astral Poly Technik is an attractive growth stock: revenue grew 27.7% and EBITDA 20.5% annually over the last three years
03-06-2016 • About Astral Poly Technik (
$ASTRAL) • By InTwits
Astral Poly Technik is a fast-growing stock in Plastic Products industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Astral Poly Technik showed fast growth in the last financial year. Astral Poly Technik's revenue surged on 20.2% in FY2016. The growth also happened in EBITDA of 21.9% for the same period.
In the longer period Astral Poly Technik showed fast revenue growth of 27.7% from FY2013 to FY2016 annually. EBITDA surged on 20.5% from FY2013 to FY2016 annually.
Astral Poly Technik ($ASTRAL) financials for the last 5 years
| mln. INR | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 5,827 | 8,252 | 10,796 | 14,299 | 17,190 |
|---|
| Revenue growth, % | | 41.6% | 30.8% | 32.4% | 20.2% |
|---|
| SG&A, % | | | | 3.54% | 3.89% |
|---|
| EBITDA | 828 | 1,172 | 1,600 | 1,683 | 2,051 |
|---|
| EBITDA growth, % | | 41.5% | 36.5% | 5.2% | 21.9% |
|---|
| EBITDA margin, % | 14.2% | 14.2% | 14.8% | 11.8% | 11.9% |
|---|
| Net Income | 395 | 606 | 789 | 759 | 1,006 |
|---|
| Net Income margin, % | 6.78% | 7.35% | 7.31% | 5.31% | 5.85% |
|---|
| |
| CAPEX | 696 | 696 | 924 | 858 | 1,369 |
|---|
| CAPEX/Revenue, % | 11.9% | 8.43% | 8.56% | 6.00% | 7.97% |
|---|
| Debt | 938 | 923 | 1,420 | 2,026 | 2,026 |
|---|
| Cash | 110 | 115 | 9 | 115 | 541 |
|---|
| Net Debt/EBITDA | 1.0x | 0.7x | 0.9x | 1.1x | 0.7x |
|---|
| |
| ROIC, % | 29.3% | 31.1% | 33.3% | 19.7% | 17.3% |
|---|
| ROE, % | 23.8% | 28.5% | 28.4% | 16.2% | 14.4% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. Astral Poly Technik's EBITDA margin increased slightly on 0.100 pp from 11.8% to 11.9% in FY2016. In the longer period the company's EBITDA margin dropped on 2.30 pp from 14.2% in FY2013 to 11.9% in FY2016.
We call Astral Poly Technik an attractive growth stock as together with the growth it delivers high ROIC at 17.3%. Three years ago it was considerably higher at 31.1%. It's average ROIC for the last three years was 23.4%.
The company showed fast Net Income margin growth of 0.600 pp from 5.30% to 5.90% in FY2016. In the longer period the company showed big decline in Net Income margin of 1.40 pp from 7.30% in FY2013 to 5.90% in FY2016.
Astral Poly Technik operates at ROE of 14.4%. It's average ROE for the last three years was 19.7%.
Capital expenditures (CAPEX)
To this fast growth Astral Poly Technik had to invest in CAPEX.Astral Poly Technik's CAPEX/Revenue was 7.97% in FY2016. The company's CAPEX/Revenue decreased on 0.466 pp from 8.43% in FY2013 to 7.97% in FY2016. Average CAPEX/Revenue for the last three years was 7.51%.
Leverage (Debt)
Having such a fast growth profile the company keeps low debt level at 0.7x Net Debt/EBITDA. In the longer period leverage increased slightly on 0.03x from 0.69x in FY2013 to 0.72x in FY2016.
Valuation vs. comparable companies
The company trades at 27.7x EV/EBITDA which is 12.8% higher than 24.5x Plastic Products industry avearge calculated based on 93 companies. At the end of trading day today Astral Poly Technik traded at 55.0x P/E which is 23.2% higher than 44.6x Plastic Products peer group avearge calculated on the basis of 9 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. At the end of trading day today Astral Poly Technik traded at 83.3x EV/(EBITDA-CAPEX) which is 2,350% higher than 3.4x Plastic Products peer group avearge calculated on the basis of 7 companies.
Management team
Astral Poly Technik is headed by Sandeep P Engineer as a CEO.
Peers in Plastic Products
Below you can find Astral Poly Technik benchmarking vs. other companies in Plastic 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 |
|---|
| Max India ($MAX) | 28.0% | 23.7% | 10.1% | 27.4% | |
| Wim Plast ($WIMPLAST) | | 23.1% | 19.5% | 23.5% | -1.9% |
| Acrysil ($ACRYSIL) | | 29.6% | 33.8% | 19.4% | 31.6% |
| Shaily Engineering Plastics ($SHAILY) | | -16.0% | 23.3% | 19.2% | 25.5% |
| Fenoplast ($FENOPLAS) | 11.4% | -1.1% | 12.6% | 8.5% | |
| |
|---|
| Median (11 companies) | 18.2% | 23.4% | 12.6% | 8.4% | 7.5% |
|---|
| Astral Poly Technik ($ASTRAL) | | 41.6% | 30.8% | 32.4% | 20.2% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Acrysil ($ACRYSIL) | 12.4% | 16.8% | 17.5% | 19.5% | 17.1% |
| Wim Plast ($WIMPLAST) | 18.1% | 17.9% | 18.1% | 17.0% | 20.9% |
| Shaily Engineering Plastics ($SHAILY) | 14.3% | 13.9% | 16.0% | 14.8% | 17.3% |
| Jain Irrigation Systems ($JISLJALEQS) | 16.6% | 12.6% | 12.6% | 12.4% | |
| Responsive Industries ($RESPONIND) | 13.4% | 11.5% | 10.3% | 12.2% | |
| |
|---|
| Median (15 companies) | 11.7% | 11.2% | 11.1% | 9.7% | 14.0% |
|---|
| Astral Poly Technik ($ASTRAL) | 14.2% | 14.2% | 14.8% | 11.8% | 11.9% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Shaily Engineering Plastics ($SHAILY) | 3.7% | | 10.7% | 17.2% | 13.0% |
| Flexituff International ($FLEXITUFF) | 10.8% | 10.3% | 15.7% | 10.0% | 5.0% |
| Acrysil ($ACRYSIL) | 7.8% | 11.0% | 9.6% | 9.3% | 5.0% |
| Wim Plast ($WIMPLAST) | 14.3% | 8.1% | 3.7% | 7.9% | 3.3% |
| Responsive Industries ($RESPONIND) | 14.7% | 10.3% | 6.9% | 3.8% | |
| |
|---|
| Median (7 companies) | 7.8% | 8.1% | 6.9% | 7.9% | 5.0% |
|---|
| Astral Poly Technik ($ASTRAL) | 11.9% | 8.4% | 8.6% | 6.0% | 8.0% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Wim Plast ($WIMPLAST) | 31.8% | 31.2% | 31.0% | 31.2% | 31.6% |
| Acrysil ($ACRYSIL) | 7.7% | 16.2% | 20.2% | 21.0% | 16.9% |
| Shaily Engineering Plastics ($SHAILY) | 19.5% | 15.0% | 19.3% | 15.2% | 18.2% |
| Max India ($MAX) | 8.9% | 24.3% | 7.0% | 12.7% | |
| Jain Irrigation Systems ($JISLJALEQS) | 13.4% | 8.3% | 9.0% | 8.6% | |
| |
|---|
| Median (22 companies) | 10.0% | 10.9% | 11.0% | 12.7% | 17.5% |
|---|
| Astral Poly Technik ($ASTRAL) | 29.3% | 31.1% | 33.3% | 19.7% | 17.3% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Flexituff International ($FLEXITUFF) | 2.2x | 3.1x | 4.3x | 5.3x | 4.5x |
| Jain Irrigation Systems ($JISLJALEQS) | 3.8x | 5.1x | 4.8x | 4.8x | |
| Acrysil ($ACRYSIL) | 2.9x | 2.2x | 2.0x | 2.7x | 1.4x |
| Shaily Engineering Plastics ($SHAILY) | 1.9x | 1.8x | 1.9x | 2.6x | 1.5x |
| Responsive Industries ($RESPONIND) | 3.3x | 2.9x | 2.4x | 1.9x | |
| |
|---|
| Median (15 companies) | 2.2x | 2.2x | 0.0x | 0.0x | 0.0x |
|---|
| Astral Poly Technik ($ASTRAL) | 1.0x | 0.7x | 0.9x | 1.1x | 0.7x |
