The numbers tell that Jindal Worldwide is a solid growth stock
04-06-2016 • About Jindal Worldwide (
$JINDWORLD) • By InTwits
Have you thought about Jindal Worldwide as a growth stock? It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
Jindal Worldwide showed fast growth in the last financial year. Jindal Worldwide's revenue surged on 20.1% in FY2016. At the same time Jindal Worldwide well managed its profitability and showed even faster growth in EBITDA of 64.8% for the same period.
In the longer period the company showed fast revenue growth of 18.5% from FY2013 to FY2016 annually. EBITDA surged on 46.1% from FY2013 to FY2016 annually.
Jindal Worldwide ($JINDWORLD) financials for the last 5 years
| mln. INR | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Revenue | 5,030 | 6,059 | 7,804 | 8,401 | 10,091 |
|---|
| Revenue growth, % | | 20.5% | 28.8% | 7.7% | 20.1% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 379 | 463 | 700 | 877 | 1,444 |
|---|
| EBITDA growth, % | | 22.1% | 51.2% | 25.1% | 64.8% |
|---|
| EBITDA margin, % | 7.54% | 7.64% | 8.98% | 10.4% | 14.3% |
|---|
| Net Income | 151 | 136 | 254 | 267 | 403 |
|---|
| Net Income margin, % | 3.01% | 2.25% | 3.26% | 3.17% | 3.99% |
|---|
| |
| CAPEX | 149 | 633 | 1,614 | 978 | 225 |
|---|
| CAPEX/Revenue, % | 2.97% | 10.5% | 20.7% | 11.6% | 2.23% |
|---|
| Debt | 1,155 | 1,577 | 3,100 | 3,491 | 3,100 |
|---|
| Cash | 290 | 272 | 118 | 343 | 136 |
|---|
| Net Debt/EBITDA | 2.3x | 2.8x | 4.3x | 3.6x | 2.1x |
|---|
| |
| ROIC, % | 14.5% | 15.2% | 13.7% | 11.0% | 18.0% |
|---|
| ROE, % | 16.2% | 12.6% | 20.0% | 17.1% | 20.9% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. The company showed fast EBITDA margin growth of 3.90 pp from 10.4% to 14.3% in FY2016. If we look for the longer period EBITDA margin surged on 6.70 pp from 7.60% in FY2013 to 14.3% in FY2016.
Jindal Worldwide shows attractive ROIC at 18.0% for the last 12 months which assumes stable development model. Three years ago it was a bit lower at 15.2%. It's average ROIC for the last three years was 14.2%.
Jindal Worldwide showed fast Net Income margin growth of 0.800 pp from 3.20% to 4% in FY2016. In the last 3 years Net Income margin surged on 1.80 pp from 2.20% in FY2013 to 4% in FY2016.
Jindal Worldwide operates at ROE of 20.9%. It's average level of ROE for the last three years was 19.3%.
Capital expenditures (CAPEX)
In FY2016 Jindal Worldwide had CAPEX/Revenue of 2.23%. The company's CAPEX/Revenue dropped on 8.22 pp from 10.5% in FY2013 to 2.23% in FY2016. It's average level of CAPEX/Revenue for the last three years was 11.5%.
Leverage (Debt)
Jindal Worldwide has medium debt level at 2.1x Net Debt/EBITDA to maintain high growth. In the longer period Jindal Worldwide showed big decline in leverage of 0.76x from 2.82x in FY2013 to 2.05x in FY2016.
Peers in Textiles
Below we provide Jindal Worldwide benchmarking against other companies in Textiles 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, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Olympia Industries ($OLYMPTX) | | -96.6% | 74,809.1% | 1,749.9% | 50.5% |
| Shri Dinesh Mills ($SHRIDINE) | 5.0% | 5.1% | -76.5% | 304.9% | |
| Santaram Spinners ($SANTASPN) | 6.0% | 60.7% | -40.9% | 112.0% | |
| Asahi Industries ($ASAHIIND) | | 23.0% | 24.4% | 103.9% | -47.3% |
| Blue Chip Tex Industries ($BLUECHIPT) | | 12.9% | 29.9% | 56.1% | 23.7% |
| |
|---|
| Median (75 companies) | 4.7% | 9.3% | 14.4% | -0.5% | -3.5% |
|---|
| Jindal Worldwide ($JINDWORLD) | | 20.5% | 28.8% | 7.7% | 20.1% |
Top companies by EBITDA margin, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Sil Investments ($SILINV) | | | | 93.8% | |
| Swadeshi Polytex ($SWADPOL) | | | | 64.4% | |
| Binny ($BINNY) | | | | 60.9% | |
| Ruby Mills ($RUBYMILLS) | 28.3% | 25.1% | 28.6% | 29.3% | |
| Premier Synthetics ($PREMSYN) | | | | 25.9% | |
| |
|---|
| Median (86 companies) | 6.2% | 9.5% | 9.5% | 6.9% | 8.8% |
|---|
| Jindal Worldwide ($JINDWORLD) | 7.5% | 7.6% | 9.0% | 10.4% | 14.3% |
Top companies by CAPEX/Revenue, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Nitin Spinners ($NITINSPIN) | 1.9% | 2.6% | 8.0% | 42.3% | 4.7% |
| Maharaja Shree Umaid Mills ($MAHASHR) | 18.6% | 24.1% | 6.8% | 16.8% | |
| SRF ($SRF) | 0.0% | 18.7% | 20.0% | 11.4% | 13.0% |
| Welspun India ($WELSPUNIND) | 5.6% | 7.8% | 16.4% | 10.9% | 17.7% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 3.4% | 1.8% | 5.6% | 10.7% | 7.1% |
| |
|---|
| Median (20 companies) | 3.4% | 5.3% | 6.7% | 6.3% | 5.4% |
|---|
| Jindal Worldwide ($JINDWORLD) | 3.0% | 10.5% | 20.7% | 11.6% | 2.2% |
Top companies by ROIC, %
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Welspun India ($WELSPUNIND) | 9.3% | 15.6% | 8.5% | 21.9% | 25.2% |
| Maharaja Shree Umaid Mills ($MAHASHR) | -0.5% | 9.2% | 8.3% | 20.4% | |
| Nitin Spinners ($NITINSPIN) | 6.0% | 19.5% | 21.5% | 17.5% | 17.8% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 9.5% | 13.6% | 19.8% | 14.6% | 14.4% |
| Arvind ($ARVIND) | 11.3% | 11.2% | 13.7% | 13.2% | 13.1% |
| |
|---|
| Median (128 companies) | 3.5% | 8.9% | 8.6% | 9.0% | 12.3% |
|---|
| Jindal Worldwide ($JINDWORLD) | 14.5% | 15.2% | 13.7% | 11.0% | 18.0% |
Top companies by Net Debt / EBITDA
| FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Top 5 |
|---|
| Bombay Rayon Fashions ($BRFL) | 4.9x | 4.9x | 11.6x | 10.0x | 7.3x |
| Ruby Mills ($RUBYMILLS) | 12.6x | 15.3x | 10.8x | 8.6x | |
| Dcm ($DCM) | 13.5x | 3.5x | 3.7x | 5.5x | |
| Nahar Spinning Mills ($NAHARSPING) | 70.8x | 3.8x | 3.2x | 4.9x | |
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 10.0x | 0.0x | 0.0x | 4.6x | |
| |
|---|
| Median (71 companies) | 3.8x | 3.2x | 0.0x | 0.0x | 0.0x |
|---|
| Jindal Worldwide ($JINDWORLD) | 2.3x | 2.8x | 4.3x | 3.6x | 2.1x |
