Upload
angel-broking
View
219
Download
0
Embed Size (px)
Citation preview
7/27/2019 Styrolution, 2Q CY 2013
1/14
Please refer to important disclosures at the end of this report 1
Y/E Dec. (` cr) 2QCY13 1QCY13 % chg (qoq) 2QCY12 % chg (yoy)Total operating income 230 242 (4.9) 236 (2.4)EBITDA 14.5 23 (38) 14.4 0.8
EBITDA Margin (%) 6.3 9.7 (337)bp 6.1 20bp
Adj. PAT 8 15 (45) 10 (15)Source: Company, Angel Research
Styrolution ABS Ltd. (Styrolution) reported mixed set of numbers for 2QCY2013.
Top line for the quarter came in flat at `230cr, lower by 2.4% yoy as compared to
our estimate of `268cr. EBITDA grew marginally by 0.8% yoy and came in at
`15cr, while margins expanded by 20bp yoy to 6.3% owing to lower raw material
cost as percentage of sales. However, due to sharp depreciation in the currency
during the quarter, EBITDA margin has eroded by 337bp sequentially. Net profit
plunged by 14.7% yoy to `8.3cr on account of lower other income (by 7.0% yoy)
and higher tax outgo (39.5% of PBT as compared to 29.3% in 2QCY2012).
Despite short term concerns, persisting short supply to ensure growthThe prevailing slowdown in the Indian economy has fenced the growth in varied
user industries (like automobile and consumer durables) catered to by Styrolution,
subsequently, restricting its top-line growth. Moreover, Styrolution has its 80% of
the raw material imported which constitute ~74% of the net sales. Considering
the sharp currency depreciation during the quarter, sustaining operational
margins is of great concern. However, ABSs long persisting domestic demand
supply gap coupled with stable currency (owing to the initiatives undertaken by
the government) provides sufficient growth visibility for Styrolution.
Outlook and valuation: We expect Styrolutions revenue to post a CAGR of 5.8%over CY2012-14E to `1,108cr in CY2014E. The EBITDA is expected to be under
pressure owing to currency depreciation as ~80% of the raw material is imported.
The EBITDA and net profit are expected to dip by 0.5% and 1.3% over CY2012-
14E to `96cr and `62cr, respectively in CY2014E. We have revised our estimatesdownwards but continue to maintain Buy rating on the stock with the revisedtarget price of `492, based on target PE of 14x for CY2014E. Key financials (Standalone)
Y/E Dec. (` cr) CY2010 CY2011 CY2012 CY2013E CY2014ENet sales 742 826 989 1,007 1,108% chg 32.8 11.3 19.8 1.8 10.0
Adj. net profit 70 54 63 53 62% chg 43.0 (22.9) 17.4 (15.9) 15.9
OPM (%) 15.2 10.0 9.9 8.4 8.7EPS (`) 39.8 30.7 36.1 30.3 35.1
P/E (x) 10.5 13.7 11.6 13.8 11.9
P/BV (x) 2.2 1.9 1.7 1.5 1.4
RoE (%) 23.1 15.1 15.6 11.6 12.2
RoCE (%) 51.7 18.6 18.4 14.9 16.4
EV/Sales (x) 0.8 0.9 0.8 0.7 0.6
EV/EBITDA (x) 5.2 8.5 7.7 8.6 7.3
Source: Company, Angel Research; Note: CMP as of July 26, 2013
BUYCMP `419
Target Price `492
Investment Period 12 Months
Stock Info
Sector
Net Debt (`cr)
Bloomberg Code
Shareholding Pattern (%)
Promoters 75.0
MF / Banks / Indian Fls 9.1
FII / NRIs / OCBs 80.4
Indian Public / Others 10.5
Abs.(%) 3m 1yr 3yr
Sensex 2.4 17.2 9.6
STYR (16.4) (38.1) 3.5
52 Week High / Low 800/351
Petrochemicals
Market Cap (`cr) 735
Beta 0.7
18
Avg. Daily Volume 7,267
Face Value (`) 10
BSE Sensex 19,748
Nifty 5,886
Reuters Code STYR.BO
STAL IN
Twinkle GosarTel: 022- 3935 7800 Ext: [email protected]
Styrolution ABS (India)Performance Highlights
2QCY2013 Result Update | Petrochemicals
July 29, 2013
7/27/2019 Styrolution, 2Q CY 2013
2/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 2
Exhibit 1:2QCY2013 performance (Standalone)
Y/E Dec. (` cr) 2QCY13 1QCY13 % chg (qoq) 2QCY12 % chg (yoy) 1HCY2013 1HCY2012 % chgTotal operating income 230.2 242.1 (4.9) 235.9 (2.4) 472.2 471.7 0.1Net raw material 175.0 179.3 (2.4) 188.6 (7.2) 354.3 368.1 (3.7)(% of Sales) 76.0 74.1 80.0 75.0 78.0
Employee cost 7.6 7.2 5.6 6.8 11.2 14.8 13.5 9.4
(% of Sales) 3.3 3.0 2.9 3.1 2.9
Other Expenses 33.1 32.1 2.9 26.1 26.9 65.2 52.9 23.3
(% of Sales) 14.4 13.3 11.0 13.8 11.2
Total expenditure 215.7 218.6 (1.4) 221.5 (2.6) 434.3 434.5 (0.0)EBITDA 14.5 23.4 (38.0) 14.4 0.8 37.9 37.2 1.9EBITDA Margin (%) 6.3 9.7 (337)bp 6.1 20bp 8.0 7.9 14bp
Interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -
Depreciation 3.3 3.2 0.6 3.3 (1.0) 6.5 6.6 (0.9)
Other income 2.5 2.2 15.5 2.7 (7.0) 4.7 7.0 (31.9)
PBT 13.8 22.4 (38.3) 13.8 (0.3) 36.2 37.6 (3.8)(% of Sales) 6.0 9.2 5.9 7.7 8.0
Tax 5.5 7.3 (25.3) 4.1 34.6 12.8 11.8 8.5
(% of PBT) 39.5 32.6 29.3 35.2 31.2
Adjusted PAT 8.3 15.1 (44.6) 9.8 (14.7) 23.4 25.9 (9.4)PATM (%) 3.6 6.2 4.1 5.0 5.5
Source: Company, Angel Research
For 2QCY2013, top line came in flat at `230cr, lower by 2.4% yoy as compared
to our estimate of `268cr. EBITDA grew marginally by 0.8% yoy and came in at`15cr, while margins expanded by 20bp yoy to 6.3% owing to lower raw material
cost as percentage of sales. The company was able to pass on the additional
imported raw material cost due to currency volatility to the customers and thereby
sustain the operational margins. However, due to sharp depreciation in the
currency during the quarter (average `54.2/USD in 1QCY2013 to `56.6/USD in
2QCY2013), sequentially EBITDA margin has eroded by 337bp. Net profit
plunged by 14.7% yoy to `8.3cr on account of lower other income (by 7.0% yoy)
and higher tax outgo (39.5% of PBT as compared to 29.3% in 2QCY2012).
Exhibit 2:Sluggish user industry impacts companys growth
Source: Company
Exhibit 3:Depreciating currency erodes the margin
Source: Company
206
208
211
236
236
263
255
242
230
14.7 12.2 (0.2)
17.3 14.4
26.5
20.72.6 (2.4)
(5)
0
5
10
15
20
25
30
0
50
100
150
200
250
300
2QCY11
3QCY11
4QCY11
1QCY12
2QCY12
3QCY12
4QCY12
1QCY13
2QCY13
(%)
(`cr)
Revenue ( LHS) Revenue growth (RHS)
24
12
13
23
14
33
24
23
15
11.8
6.0 6.4
9.7
6.1
12.7
9.39.7
6.3
0
3
6
9
12
15
0
10
20
30
40
2QCY11
3QCY11
4QCY11
1QCY12
2QCY12
3QCY12
4QCY12
1QCY13
2QCY13
(%)
(`cr)
EBIT DA (LH S) EBITD A Margin (RH S)
7/27/2019 Styrolution, 2Q CY 2013
3/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 3
Investment arguments
Despite short term concerns, persisting short supply to ensure growth
The current slowdown in the economy has fenced the growth in the user industrieslike automobile sector and consumer durables sector which account to ~60% of
the ABS industry demand. Subsequently, the top-line growth for the company has
remained flat over last few quarters. Styrolution expects automobile industry to
operate at 70-75% utilisation level while consumer durables at 65-70% at steady
growth. However, with revival in the economy leading to growth in varied
industries is expected to provide traction to the ABS volumes and thereby drive the
performance of the company upwards.
Exhibit 4:GDP growth dip mirroring economy slowdown
Source: CSO
Exhibit 5:Application industry composition
Source: Company
The gap between domestic demand for ABS vis-a-vis supply has persisted for long
and the same still continues to exist. The unfulfilled demand is being met by
imports. CRISIL Research estimates that the supply of ABS would grow at 17%
CAGR in order to meet the demand growth of 10% CAGR during CY2010-15E.
Exhibit 6:Unfulfilled domestic demand owing to demand supply gap
Source: Company
Styrolutions expansion of ABS capacity by 20,000TPA to 80,000TPA in 2011 has
enabled to tap the unfulfilled demand in the industry. Assuming the market share
of Styrolution to remain constant at 60%, volumes for ABS are likely to grow by
~12% over this period.
11.4
9.5
8.69.2
9.9
7.5
6.56.0
5.1 5.4 5.24.7 4.8
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
Mar-10
Jun-1
0
Sep-1
0
Dec-1
0
Mar-11
Jun-1
1
Sep-1
1
Dec-1
1
Mar-12
Jun-1
2
Sep-1
2
Dec-1
2
Mar-13
(%)
GDP yoy growth (%)
HomeAppliances
30%
Automobiles
28%Telecom
5%
Electrical&electronics
7%
Business machineofficeautomation
8%
Luggage &bus body
4%
Stationary/helmet9%
Textiles
3%
Others
6%
0
20
40
60
80
100
120
140
160
180
CY2008 CY2009 CY2010 CY2011 CY2012 CY2013E CY2014E
('000TPA
)
ABS Production ABS import ABS demand
7/27/2019 Styrolution, 2Q CY 2013
4/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 4
Stable currency to aid sustain margins
Rupee depreciation has hit the operational margins of the company since ~80% of
the raw material is been imported (74% of net sales). However, initiatives by the
government in order to boost the economy are expected to lead to stabilise the
currency thereby improving the profitability front of the company.
Exhibit 7:Depreciating rupee
Source: Company
We have expected the depreciation in rupee to be 5% over CY2013-14E after
considering inflationary change in the prices (USD). Consequently, EBITDA margin
is expected to be at 8.7%. However, more than expected downward movement of
currency would dent the margins further.
Exhibit 8:Raw material price details
Particulars Acrylonitrile Butadiene StyreneAverage INR prices (CY2013) 120,365 94,664 91,145
Increase in USD prices (%) 1.8 1.1 2.2
Change in Rupee (%) 5 5 5
Average INR prices (CY2014) 128,658 100,511 97,760
Source: Bloomberg, Angel Research
Exhibit 9: Sensitivity analysis
Change in Rupee (%) EBITDA margin (%) Adjusted PAT (`)(5) 15.3 111
(3) 14.0 102
0 12.0 87
3 10.0 72
5 8.7 628 6.7 47
Source: Angel Research
40
45
50
55
60
65
Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13
(`)
7/27/2019 Styrolution, 2Q CY 2013
5/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 5
Tailor-made products as per market and consumer demand
Considering the rising demand for polymers in varied industries, Styrolution has
been consistently expanding its capacity and simultaneously co-polymerising ABS
ie, changing polymer composition and blending. The company has come up withmany tailor made products taking advantage of ABS flexibility of composition and
structure, which allows its use in diverse applications.
Exhibit 10:Product development
Product Development End use- productBlend of ABS/PMMA LCD TV market
Low gloss ABS Bus roof and automotive body interior
Nylon/ABS blend Indian automotive markets
ESCR grade Extrusion grade ABS Refrigerator application
Glass filled ABS AC blower application
Source: Company
7/27/2019 Styrolution, 2Q CY 2013
6/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 6
Financials
Exhibit 11: Key assumptions
Particulars (%) CY2013E CY2014ETotal Volume Growth 1.8 3.8
Total Realisation Growth 1.8 10.0
Weighted Change in RM 2.0 6.8
Source: Angel Research
CRISIL Research has estimated the supply of ABS to grow at a 17% CAGR during
CY2010-15E. Considering the current slowdown in the economy, we have
assumed the total volume to grow at 1.8% yoy and 3.8% yoy in CY2013E and
CY2014E, respectively.
Exhibit 12: Change in estimates
Y/E Dec. Earlier estimates Revised estimates % changeCY2013E CY2014E CY2013E CY2014E CY2013E CY2014ENet Sales (` cr) 1,068 1,223 1,007 1,108 (5.7) (9.4)EBITDA Margin (%) 9.6 9.6 8.4 8.7 (126)bp (90)bp
EPS (`) 38 44 30 35 (20.4) (20.3)Source: Angel Research
Net sales growth to be sluggish at 5.8% over CY2012-14E
Mirroring the slowdown in growth in automobile and home appliances sectors, the
demand for ABS is expected to be stagnant. Hence, we expect top-line to grow at
1.8% in CY2013E. However, with initiatives in policy reforms undertaken by
government to boost economy, the growth in CY2014E is expected to improve to
10.0% yoy with net-sales at `1,108cr in CY2014E.
Exhibit 13: Net-sales growth on a roller coaster ride
Source: Company, Angel Research
559
742
826
989
1,0
07
1,1
08
(7.4)
32.811.3
19.8 1.8
10.0
(10)
(5)
0
5
10
15
20
25
30
35
0
200
400
600
800
1000
1200
CY2009 CY2010 CY2011 CY2012E CY2013E CY2014E
(%)
(`
cr)
Net Sales (LHS) Net Sales growth (RHS)
7/27/2019 Styrolution, 2Q CY 2013
7/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 7
On the back of lower availability of imported raw materials and volatile currency
movements (increasing feedstock prices), raw-material prices are assumed to
grow, which would be partially be passed on to the consumers by price hikes.
EBITDA, on the back of flat top-line growth is expected to dip from`
98cr inCY2012 to `96cr in CY2014E. The EBITDA margin too is expected to remain
under pressure and dip to 8.4% and 8.7% in CY2013E and CY2014E respectively.
PAT too is expected to dip by 1.3% CAGR over CY2012-14E to `62cr in CY2014E.
Exhibit 14: EBITDA margin under pressure
Source: Company, Angel Research
Exhibit 15: PAT margin to normalise
Source: Company, Angel Research
86 113 82 98 84 96
15.4
15.2
10.0
9.9
8.4
8.7
0
3
6
9
12
15
18
0
20
40
60
80
100
120
CY2009 CY2010 CY2011 CY2012E CY2013E CY2014E
(%)
(`
cr)
EBITDA (LHS) EBITDA margin (RHS)
49 70 54 63 53 62
8.8
9.4
6.5
6.4
5.3
5.6
0
1
2
34
5
6
7
8
9
10
0
10
20
30
40
50
60
70
80
CY2009 CY2010 CY2011 CY2012E CY2013E CY2014E
(%)
(`cr)
PAT (LHS) PAT margin (RHS)
7/27/2019 Styrolution, 2Q CY 2013
8/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 8
Risks
Raw-material supply and price volatility
Acrylonitrile, butadiene and styrene are the key raw materials for production ofABS and SAN. About 81% of the total raw-materials used for production are
imported. Supply of these raw materials is quite tight and inflexible. Moreover,
their prices have been fluctuating in a wide range, which in turn is likely to
negatively affect the companys margins. On the back of high feedstock prices,
prices for ABS are also expected to rise.
Exhibit 16: Butadiene and Styrene price trend
Source: Bloomberg
Exhibit 17: Acrylonitrile price trend
Source: Bloomberg
Exchange rate fluctuationsRaw materials form nearly 80% of the total operating cost. 81% of the raw
materials are imported. The exchange rate fluctuation can have an adverse effect
on cost and, thereby the margins, so is a risk factor.
Competition
In the domestic duopolistic market, Styrolution holds 60% market share in ABS
resins segment and 68% in SAN resins segment, while the remaining is held by
Bhansali Engg Ltd.
Exhibit 18: Relative Valuation
Y/E (TTM) Net Sales(`cr) OPM(%) PAT(`cr) EPS(`) RoE(%) P/E(x) P/BV(x) EV/ Sales(x)Styrolution* 990 9.6 60 34.4 13.2 12.2 1.6 0.7
Bhansali engg^ 420 3.8 1 0.1 0.6 279.1 1.6 0.8
BASF India^ 3,945 6.2 121 27.8 10.5 19.2 2.0 0.7
Source: Company, Capital Line, *TTM ended Jun13 quarter, ^TTM ended Mar13 quarter
0
5
10
15
20
25
30
35
40
45
50
0
10
20
30
40
5060
70
80
90
Jan-1
0
Jul-10
Jan-1
1
Jul-11
Jan-1
2
Jul-12
Jan-1
3
Jul-13
(`/pound)
Butadine LHS St rene RHS
75
85
95
105
115
125
135
145
155
Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13
('000`/MT)
7/27/2019 Styrolution, 2Q CY 2013
9/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 9
Outlook and Valuation
We expect Styrolutions revenue to post a CAGR of 5.8% over CY2012-14E to
`1,108cr in CY2014E owing to short term concerns over economic slowdown. The
EBITDA and net profit are expected to dip by 0.5% and 1.3% over CY2012-14E to
`96cr and `62cr, respectively in CY2014E. With recent correction in the stock price
owing to OFS, Styrolution is available at an attractive valuation of 11.9x PE and
EV/Sales of 0.6x for CY2014E. We have revised our estimates downwards butcontinue to maintain Buy rating on the stock with the revised target price of `492,based on target PE of 14x for CY2014E.Exhibit 19: One year forward PE
Source: Company, Angel Research
Company Background
Styrolution (name changed from INEOS ABS India Ltd. effective from
March 1, 2012) is a leading manufacturer of an engineering plastic namely
styrene monomer, polystyrene and ABS. The company is a 50/50 joint venture
between BASF and INEOS ABS formed by combining the styrenic business of two
of the largest global chemical companies. In the domestic market, Styrolution is the
market leader and holds 60% market share in ABS resins segment and 68% in
SAN resins segment.
Offer for Sale
The Promoter, Styrolution Jersey, also the parent company with 87.3% stake pre-
issue, sold 12.3% of the total paid up equity share capital of the company through
OFS in order to abide by the June 2010 amendment of Securities Contract Act
which mandates listed companies to have a minimum 25% of public shareholding
by June 2013. Styrolution had fixed the OFS floor price at `400 per share which
was subscribed by 2.4 times at indicative price of `422.
0
100
200
300
400
500
600
700
800
900
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
(`)
Price 2.5x 8.5x 14.5x 20.5x
7/27/2019 Styrolution, 2Q CY 2013
10/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 10
Profit and Loss (Standalone)
Y/E December (` cr) CY2010 CY2011 CY2012 CY2013E CY2014EGross sales 816 911 1,107 1,126 1,239
Less: Excise duty 74 85 117 119 131Net Sales 742 826 989 1,007 1,108
Other operating income - - - - -Total operating income 742 826 989 1,007 1,108% chg 32.8 11.3 19.8 1.8 10.0
Net Raw Materials 522 620 745 766 844
% chg 44.8 18.8 20.2 2.8 10.2
Other Mfg costs 36 41 51 50 55
% chg 5.7 12.9 23.1 (0.5) 10.0
Personnel 20 26 28 28 31
% chg 16.2 26.3 6.8 1.8 10.8
Other 51 57 69 79 81
% chg (15.9) 11.8 20.8 14.0 3.0
Total Expenditure 629 744 892 923 1,012
EBITDA 113 82 98 84 96% chg 31.0 (27.1) 18.4 (13.5) 14.4
EBITDA Margin 15.2 10.0 9.9 8.4 8.7
Depreciation & Amortisation 14 14 14 15 16
EBIT 99 68 84 69 80% chg 38.0 (30.9) 22.7 (17.7) 16.4
(% of Net Sales) 13.3 8.3 8.5 6.9 7.3
Interest & other Charges 2 2 2 2 2
Other Income 5 11 11 11 12
(% of Net Sales) 0.7 1.3 1.1 1.1 1.1
Recurring PBT 97 67 82 67 78% chg 37.9 (31.3) 22.7 (18.1) 16.9
PBT (reported) 103 78 93 78 91Tax 33 24 30 25 29
(% of PBT) 31.8 30.3 32.1 32.1 32.1
PAT (reported) 70 54 63 53 62Extraordinary Expense/(Inc.) (0) (0) (0) - -ADJ. PAT 70 54 63 53 62% chg 43.0 (22.9) 17.4 (15.9) 15.9
(% of Net Sales) 9.4 6.5 6.4 5.3 5.6
Basic EPS (`) 39.8 30.7 36.1 30.3 35.1Fully Diluted EPS (`) 39.8 30.7 36.1 30.3 35.1% chg 43.0 (22.9) 17.4 (15.9) 15.9
7/27/2019 Styrolution, 2Q CY 2013
11/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 11
Balance Sheet (Standalone)
Y/E December (` cr) CY2010 CY2011 CY2012 CY2013E CY2014ESOURCES OF FUNDSEquity Share Capital 18 18 18 18 18Preference Capital - - - - -
Reserves& Surplus 317 362 417 463 516
Shareholders Funds 334 380 435 480 534Minority Interest - - - - -Total Loans - 131 67 74 74
Deferred Tax Liability (Net) 21 18 17 17 17
Other long term liabilities - 0 0 0 0
Long term provisions - 15 15 15 15
Total Liabilities 356 543 534 586 639APPLICATION OF FUNDSGross Block 318 324 323 355 373
Less: Acc. Depreciation 181 195 199 214 230
Net Block 136 129 124 141 143Capital Work-in-Progress 12 11 29 35 39
Lease adjustment - - - - -
Goodwill - - - - -
Investments 93 101 17 22 29Long Term Loans and advances - 13 28 20 25
Current Assets 281 341 440 475 522
Cash 60 63 33 66 83
Loans & Advances 41 59 137 140 154
Inventory 71 95 95 94 91
Debtor 109 124 175 176 194
Current liabilities 166 51 104 107 118
Net Current Assets 115 290 336 368 404Mis. Exp. not written off - - - - -
Total Assets 356 543 534 586 639
7/27/2019 Styrolution, 2Q CY 2013
12/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 12
Cash Flow (Standalone)
Y/E December (` cr) CY2010 CY2011 CY2012 CY2013E CY2014EProfit Before Tax 103 78 93 78 91
Depreciation 14 14 14 15 16Change in WC 16 (352) (77) 1 (19)
Other income (5) (11) (11) (11) (12)
Direct taxes paid (33) (24) (30) (25) (29)
Cash Flow from Operations 95 (294) (11) 59 46(Incr)/ Decr in Fixed Assets (8) (5) (17) (38) (21)
(Incr)/Decr In Investments (21) (21) 69 3 (12)
Other income 5 11 11 11 12
Cash Flow from Investing (24) (16) 63 (24) (21)Issue of Equity/Preference - - - - -
Incr/(Decr) in Debt (2) 142 (64) 7 -
Dividend Paid (Incl. Tax) (7) (7) (7) (8) (8)
Others (39) 179 (11) - -
Cash Flow from Financing (48) 314 (82) (1) (8)Incr/(Decr) In B/S Cash 22 4 (31) 33 17
Opening Cash balance 37 60 63 33 66Closing cash balance 60 63 33 66 83
7/27/2019 Styrolution, 2Q CY 2013
13/14
Styrolution ABS | 2QCY2013 Result Update
July 29, 2013 13
Key Ratios (Standalone)
Y/E December CY2010 CY2011 CY2012 CY2013E CY2014EValuation Ratio (x)P/E (on FDEPS) 10.5 13.7 11.6 13.8 11.9
P/CEPS 8.8 10.9 9.6 10.8 9.5
P/BV 2.2 1.9 1.7 1.5 1.4
Dividend yield (%) 1.0 1.0 1.0 1.1 1.1
EV/Net sales 0.8 0.9 0.8 0.7 0.6
EV/EBITDA 5.2 8.5 7.7 8.6 7.3
EV / Total Assets 1.6 1.3 1.4 1.2 1.1
Per Share Data (`)EPS (Basic) 40 31 36 30 35
EPS (fully diluted) 40 31 36 30 35
Cash EPS 48 39 44 39 44DPS 4 4 4 4 4
Book Value 190 216 247 273 304
DuPont AnalysisEBIT margin 13.3 8.3 8.5 6.9 7.3
Tax retention ratio 0.7 0.7 0.7 0.7 0.7
Asset turnover (x) 3.9 2.2 2.2 2.2 2.3
ROIC (Post-tax) 35.3 12.9 12.5 10.1 11.2
Cost of Debt (Post Tax) - - - - -
Leverage (x) (0.5) (0.1) 0.0 (0.0) (0.1)
Operating ROE 19.2 11.8 13.0 9.8 10.4
Returns (%)ROCE (Pre-tax) 27.8 12.6 15.7 11.8 12.6
Angel ROIC (Pre-tax) 51.7 18.6 18.4 14.9 16.4
ROE 23.1 15.1 15.6 11.6 12.2
Turnover ratios (x)Asset TO (Gross Block) 2.3 2.5 3.1 2.8 3.0
Inventory / Net sales (days) 40 38 39 38 39
Receivables (days) 61 58 70 70 70
Payables (days) 110 27 46 61 45
WC cycle (ex-cash) (days) 27 100 112 109 106
Solvency ratios (x)Net debt to equity (0.5) (0.1) 0.0 (0.0) (0.1)
Net debt to EBITDA (1.3) (0.4) 0.2 (0.2) (0.4)
Int. Coverage (EBIT/ Int.) 55.0 42.5 42.8 - -
7/27/2019 Styrolution, 2Q CY 2013
14/14
Styrolution ABS | 2QCY2013 Result Update
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document shouldmake such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of thecompanies referred to in this document (including the merits and risks involved), and should consult their own advisors to determinethe merits and risks of such an investment.
Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, makeinvestment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in thisdocument are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions andtrading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company'sfundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannottestify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may beregulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,redistributed or passed on, directly or indirectly.
Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking
or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report orin the past.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise fromor in connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates mayhave investment positions in the stocks recommended in this report.
Disclosure of Interest Statement Styrolution ABS
1. Analyst ownership of the stock No
2. Angel and its Group companies ownership of the stock No
3. Angel and its Group companies' Directors ownership of the stock No
4. Broking relationship with company covered No
Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors.
Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)