Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills Debt dropped on 11.8% while Revenue increased on 3.3%
01-09-2016 • About Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills (
$RAIREKMOH) • By InTwits
Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills reported FY2016 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is relatively stable: 5.0% in FY2016 vs. 5.1% in FY2015 vs. 4.1% in FY2012
- The company has business model with average profitability: ROIC is 11.2%
- It operates with medium-size leverage: Net Debt/EBITDA is 4.0x while industry average is 4.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills's Revenue increased on 3.3%. During FY2012-FY2016 Revenue growth topped in FY2015 at 12.7%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.5 pp from 9.1% to 6.6% in FY2016. During FY2012-FY2016 EBITDA Margin topped in FY2013 at 5.7% and was declining since that time.
Net Income margin showed almost no change in FY2016. Net Income margin stuck to a growing trend at 0.50 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2016 Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills had CAPEX/Revenue of 0.098%. Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills showed almost no change in CAPEX/Revenue from FY2013 to FY2016.
Return on investment
The company operates at low ROIC (11.2%) and ROE (8.4%).
Leverage (Debt)
Debt level is 4.0x Net Debt / EBITDA and 4.0x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 4.6x to 4.0x in FY2016. Debt dropped on 11.8% while cash dropped on 40.6%.
Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills has short term refinancing risk: cash is only 1.7% of short term debt.
Valuation and dividends
Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills's trades at EV/EBITDA 12.1x and P/E 40.1x while industy averages are 17.8x and 21.9x.
Financial and operational results
Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) key annual financial indicators| mln. INR | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,271 | 2,516 | 2,827 | 3,186 | 3,292 | 3.3% |
| EBITDA | 93 | 144 | 157 | 162 | 166 | 2.5% |
| Net Income | -27 | 1 | 14 | 21 | 33 | 55.6% |
Balance Sheet
|
|---|
| Cash | 22 | | | 15 | 9 | -40.6% |
| Short Term Debt | 480 | | | 556 | 511 | -8.0% |
| Long Term Debt | 472 | | | 204 | 159 | -22.0% |
Cash flow
|
|---|
| Capex | 22 | | | 5 | 3 | -38.5% |
Ratios
|
|---|
| Revenue growth | -3.4% | 10.8% | 12.4% | 12.7% | 3.3% | |
| EBITDA growth | -34.3% | 54.7% | 8.8% | 3.0% | 2.5% | |
|
|---|
| EBITDA Margin | 4.1% | 5.7% | 5.5% | 5.1% | 5.0% | -0.0% |
| Net Income Margin | -1.2% | 0.1% | 0.5% | 0.7% | 1.0% | 0.3% |
| CAPEX, % of revenue | 1.0% | | | 0.2% | 0.1% | -0.1% |
|
|---|
| ROIC | 3.5% | | | | 11.2% | |
| ROE | -10.6% | | | | 8.4% | |
| Net Debt/EBITDA | 10.0x | 0.0x | 0.0x | 4.6x | 4.0x | -0.6x |
Peers in Textiles
Below you can find Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills benchmarking vs. other companies in Textiles 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, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Raj Rayon Industries ($RAJRAYON) | - | 3.8% | -33.7% | -61.0% | 146.1% |
| Rajvir Industries ($RAJVIR) | - | -5.7% | -30.9% | -49.2% | 71.3% |
| Olympia Industries ($OLYMPTX) | - | -96.6% | 74,809.1% | 1,749.9% | 50.5% |
| Prag Bosimi Synthetics ($PRAGBOS) | - | - | - | - | 34.5% |
| Nitin Spinners ($NITINSPIN) | - | 4.1% | 9.5% | 26.2% | 24.4% |
| |
|---|
| Median (72 companies) | -1.0% | 9.3% | 14.6% | -0.5% | -4.0% |
|---|
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | - | 10.8% | 12.4% | 12.7% | 3.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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% | 35.4% |
| Premier Synthetics ($PREMSYN) | - | - | - | 25.9% | - |
| |
|---|
| Median (86 companies) | 6.5% | 9.5% | 9.5% | 7.2% | 8.7% |
|---|
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 4.1% | 5.7% | 5.5% | 5.1% | 5.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Welspun India ($WELSPUNIND) | 5.6% | 7.8% | 16.4% | 10.9% | 17.7% |
| SRF ($SRF) | 0.0% | 18.7% | 20.0% | 11.4% | 13.0% |
| Grasim Industries ($GRASIM) | 17.7% | 21.7% | 11.6% | 10.2% | 7.7% |
| Arvind ($ARVIND) | 9.4% | 7.0% | 6.5% | 7.2% | 7.3% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 3.4% | 1.8% | 5.6% | 10.7% | 7.1% |
| |
|---|
| Median (17 companies) | 3.4% | 5.6% | 6.8% | 6.7% | 4.6% |
|---|
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 1.0% | - | - | 0.2% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Welspun India ($WELSPUNIND) | 9.3% | 15.6% | 8.5% | 21.9% | 25.2% |
| Jindal Worldwide ($JINDWORLD) | 14.5% | 15.2% | 13.7% | 11.0% | 18.0% |
| Nitin Spinners ($NITINSPIN) | 6.0% | 19.5% | 21.5% | 17.5% | 17.8% |
| Sangam (India) ($SANGAMIND) | 9.8% | 14.7% | 12.2% | 12.8% | 15.0% |
| Sutlej Textiles & Industries ($SUTLEJTEX) | 9.5% | 13.6% | 19.8% | 14.6% | 14.4% |
| |
|---|
| Median (123 companies) | 3.6% | 9.0% | 8.9% | 9.5% | 10.2% |
|---|
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 3.5% | - | - | - | 11.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Jaybharat Textiles & Real Estate ($JAYTEX) | 10.9x | 53.6x | 23.8x | - | 247.8x |
| Bombay Rayon Fashions ($BRFL) | 4.9x | 4.9x | 11.6x | 10.0x | 7.3x |
| Filatex India ($FILATEX) | 8.0x | 6.5x | 0.0x | 0.0x | 4.9x |
| Ruby Mills ($RUBYMILLS) | 12.6x | 15.3x | 10.8x | 8.6x | 4.8x |
| Raymond ($RAYMOND) | 3.7x | 4.6x | 3.7x | 4.1x | 4.5x |
| |
|---|
| Median (67 companies) | 3.8x | 3.2x | 0.0x | 0.0x | 0.0x |
|---|
| Rai Saheb Rekhchand Mohota Spg.& Wvg.Mills ($RAIREKMOH) | 10.0x | 0.0x | 0.0x | 4.6x | 4.0x |
