Bajaj Holdings & Investment reports 40.0% EBITDA growth in 2018 and 12.4% Revenue growth
18-05-2018 • About Bajaj Holdings & Investment (
$BAJAJHLDNG) • By InTwits
Bajaj Holdings & Investment reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- Bajaj Holdings & Investment is a fast growth stock: FY2018 revenue growth was 12.4%, 5 year revenue CAGR was 23.0% at FY2018 ROIC 4.5%
- Bajaj Holdings & Investment has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.1%.
- The company has potentially unprofitable business model: ROIC is 4.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue surged on 12.4%. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.6 pp from 19.7% to 12.1% in FY2018.
Net Income margin jumped on 42.4 pp from 291% to 333% in FY2018.
Investments (CAPEX, working capital and M&A)
Bajaj Holdings & Investment's CAPEX/Revenue was 0.17% in FY2018. Bajaj Holdings & Investment's CAPEX/Revenue showed almost no change from FY2015 to FY2018. Average CAPEX/Revenue for the last three years was 0.12%.
Return on investment
The company operates at good ROE (16.2%) while ROIC is low (4.5%). ROIC increased slightly on 0.71 pp from 3.8% to 4.5% in FY2018. ROE increased slightly on 1.3 pp from 14.9% to 16.2% in FY2018. During the last 5 years ROE bottomed in FY2017 at 14.9%.
Leverage (Debt)
The company has no debt. Cash jumped on 574%.
Financial and operational results
FY ended 31-03-2018
Bajaj Holdings & Investment ($BAJAJHLDNG) key annual financial indicators| mln. INR | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 4,276 | 5,428 | 4,765 | 8,503 | 9,558 | 12.4% |
| EBITDA | 3,946 | 5,030 | 4,354 | 6,357 | 8,901 | 40.0% |
| Net Income | 19,876 | 20,292 | 22,652 | 24,732 | 31,857 | 28.8% |
Balance Sheet
|
|---|
| Cash | 603 | 11 | 14,230 | 125 | 844 | 573.7% |
| Short Term Debt | 0 | 0 | 0 | 0 | 0 | |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 0 | 1 | 9 | 1 | 16 | 1,345.5% |
Ratios
|
|---|
| Revenue growth | 25.9% | 27.0% | -12.2% | 78.4% | 12.4% | |
| EBITDA growth | 21.8% | 27.5% | -13.4% | 46.0% | 40.0% | |
|
|---|
| EBITDA Margin | 92.3% | 92.7% | 91.4% | 74.8% | 93.1% | 18.4% |
| Net Income Margin | 464.9% | 373.8% | 475.4% | 290.9% | 333.3% | 42.4% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.2% | 0.0% | 0.2% | 0.2% |
|
|---|
| ROIC | 3.5% | 3.9% | 3.0% | 3.8% | 4.5% | 0.7% |
| ROE | 17.8% | 16.0% | 15.8% | 14.9% | 16.2% | 1.3% |
| Net Debt/EBITDA | -0.2x | -0.0x | -3.3x | -0.0x | -0.1x | -0.1x |
Peers in Finance (including NBFCs)
Below we provide Bajaj Holdings & Investment benchmarking against other companies in Finance (including NBFCs) 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, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Srei Infrastructure Finance ($SREINFRA) | - | -0.2% | 1.3% | 43.9% | 12.8% |
| |
|---|
| Median (1 company) | 20.3% | 13.3% | 8.2% | 43.9% | 12.8% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | - | 27.0% | -12.2% | 78.4% | 12.4% |
Top companies by EBITDA margin, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Srei Infrastructure Finance ($SREINFRA) | 81.7% | 78.5% | 72.8% | 66.2% | 71.3% |
| |
|---|
| Median (1 company) | 65.5% | 59.4% | 60.5% | 66.2% | 71.3% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 92.3% | 92.7% | 91.4% | 74.8% | 93.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Srei Infrastructure Finance ($SREINFRA) | 12.3% | 5.4% | 6.0% | 27.9% | 52.5% |
| |
|---|
| Median (1 company) | 1.1% | 0.7% | 1.0% | 27.9% | 52.5% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 0.0% | 0.0% | 0.2% | 0.0% | 0.2% |
Top companies by ROIC, %
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Srei Infrastructure Finance ($SREINFRA) | - | - | 0.4% | 1.2% | 1.6% |
| |
|---|
| Median (1 company) | 4.2% | 4.2% | 4.2% | 1.2% | 1.6% |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | 3.5% | 3.9% | 3.0% | 3.8% | 4.5% |
Top companies by Net Debt / EBITDA
| Top | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Srei Infrastructure Finance ($SREINFRA) | 7.5x | 8.0x | 8.7x | 8.4x | 8.7x |
| |
|---|
| Median (1 company) | 3.9x | 0.0x | 0.6x | 8.4x | 8.7x |
|---|
| Bajaj Holdings & Investment ($BAJAJHLDNG) | -0.2x | -0.0x | -3.3x | -0.0x | -0.1x |
