Equity Right Research: Kaynes Technology: Elevated Earnings Projections and Strategic Entry into OSAT Sector Enhance Value , Re-iterate BUY
MCap: Rs 35,618 Cr; CMP: Rs5,564; TP: Rs7,963; Upside: 43%; Rating: BUY
| Stock Data (as on 30 June,2024) |
| NIFTY |
:25,377 |
| 52 Week H/L (INR) |
:5,742/1,986 |
| Market Cap (INR Cr) |
:35,046 |
| Outstanding Shares (Crs) |
:6.40 |
| Dividend Yield (%) |
:0.00% |
| NSE Code |
:KAYNES |
| BSE Code |
:543664 |
| Absolute Returns (%) |
| 3 Months |
:38.03% |
| 6 Months |
:106.53% |
| 1 year |
:157.61% |
| Shareholding Pattern (as on June 30,2024) |
| Promoters |
:57.83% |
| FIIs |
:14.27% |
| DIIs |
:17.88% |
| Public |
:10.03% |
| Financial Summary |
| Key Metrics |
FY24 |
FY25E |
FY26E |
| Net Revenue |
1,805 |
2,996 |
4,195 |
| YoY Growth % |
60% |
66% |
40% |
| EBITDA |
254 |
479 |
671 |
| EBITDA Margin (%) |
14.07% |
16% |
16% |
| PAT |
183 |
298 |
433 |
| YoY Growth % |
92% |
62.88% |
45.24% |
| EPS (in INR) |
28.68 |
46.57 |
67.64 |
| ROE |
7% |
13% |
18.50% |
Valuation
We estimate revenue/ EBITDA /PAT growth of 66%/ 89%/ 63% in FY25E. PAT growth driven by healthy order book growth trend and high EBITDA margin profile guided by management(15-16%) in FY25. Factoring all the growth factors, we give buy rating on the stock with TP of 7,963 (171 TTM PE x FY25E 46 EPS).
About the stock
Kaynes Technology is engaged in the business of electronic manufacturing, offer end to end and IoT enabled solution, expertise in electronics system design and manufacturing (ESDM) services. It has three decades of experience in providing conceptual design, process engineering, integrated manufacturing and life cycle support. It serves various industries such as automotive, industrial, aerospace, defence, outer-space, nuclear, medical, railways, internet of things (IoT) and Information technology. Kaynes business vertical can be classified as follow:
OEM – Box Build: Kaynes specialize in delivering “Build to Print’ or ‘Build to specifications’ of complex box build, sub-systems and products across various industry verticals.
OEM – Turnkey Solution – Printed Circuit Board Assemblies (PCBA): Kaynes encompass electronic manufacturing of PCBA, cable harnesses, magnetics and plastics ranging from prototyping to product realization including mass manufacturing.
Original Design Manufacturing (ODM): Kaynes offers ODM services in smart metering technology, smart street lighting, BLDC technology, inverter technology, gallium nitride-based charging technology and IoT solutions for smart consumer appliances and devices.
Product engineering and IoT Solutions: Kaynes offer product engineering services include embedded design, firmware and software development, mechanical design. They also provide IoT solution such as cloud based services, IoT data analytics platform.
Growth Fuel Factors
- Strong order book.
- New business doors open coming soon –OSAT/PCB.
- Government initiatives encourage foreign companies to enter in India.
- Indian EMS industry represent growth of 41% CAGR by FY26.
- Capacity expansion in existing business.
- Highly outsourced by OEMs to EMS vendors.
Global economic outlook
The global economy achieved moderate growth rate of at 3.1% in 2023 compared to 3.2% in 2022. The various challenges such as geopolitical tension like conflict in Ukraine, higher inflation, monetary tightening by central banks, sluggish recovery in china and volatility in energy prices and food markets are contributed to slowdown in global economic growth. While advanced economy saw mixed results with US growing by 2.5% due to robust consumer spending but Eurozone lagging at 0.4% growth led by high energy price. Emerging market outperformed both the market at 4.3% growth rate driven by china’s reopening and India’s domestic demand.
According to the world economic outlook April 2024, the global economy is expected to grow at same run-rate of 3.2% during 2024 and 2025, mirroring to 2023. This forecast is supported by the expectation of continued disinflation and recovery for global economy. For developed economies, growth is projected to rise from 1.6% in 2023 to 1.7% and to 1.8% in 2025. While emerging markets and developing economies are expected to undergo a modest slowdown from 4.3% growth in 2023 to 4.2% growth in 2024 and 2025. Global inflation is forecasted to decline steadily from 6.8% in 2023 to 5.9% in 2024 and 4.5% in 2025 as supply condition improve.
Source: Company’s MDA
Indian Economy Outlook
According to the National Statistical Office (NSO), India’s GDP growth stood at 8.2% in FY24 compared to 7.0% in FY23. The overall economic growth supported by strong domestic demand, push in capital expenditure from government, moderate inflation and stable interest rate. India’s index of industrial production report 5.8% growth rate in FY24 compared to 5.2% in previous year. This strong growth momentum is evident by the growth observed in industrial production data, robust GST collection, per capita income and increasing private capital expenditure.
India’s economy continues to expand in CY24 as GDP growth is forecasted at 7% according to the IMF’s July World Economic Outlook. This growth supported by robust domestic demand, government’s push for capital expenditure and favorable policy environment. The recent interim budget for FY2024-25 increase capex by 16.9% reflecting the strong commitment of the union government to boost economic growth from significant investment in infrastructure development. Various government initiatives like ‘Make in India’,’Aatmanirbhar Bharat’ and the Production Linked Incentive (PLI) schemes supporting manufacturing sector and increasing domestic manufacturing.
India’s economic growth outlook appear strong despite challenges such as food inflation and cost pressures. This optimistic outlook supported by robust domestic demand, digital transformation and entrepreneurship. India aims to become 3rd largest economy reach GDP to US$ 5 Tn by CY27.
Source: Company MDA
Global Electronics Manufacturing Services (EMS) Industry
The global electronics manufacturing services (EMS) market was valued at US$ 539 bn in 2023 and is expected to reach around US$ 1,064 bn by 20233 with CAGR of 7.03% during 2024 to 2033. This growth is driven by the shift in in-house manufacturing to EMS vendor and rising demand for consumer electronics, industrial automation.
The future outlook for global EMS market is robust, with significant growth expected across various regions and industry segments. Asia-Pacific region such as china, Taiwan and Vietnam, dominates the EMS market because of lower maintenance costs, material availability, faster production, skilled labor. while Europe and North America are also expected to show substantial growth driven by advancement in automotive electronics, healthcare and industrial automation. Key trend for shaping the future of the EMS market include the integration of industry 4.0 technologies such as IoT, AI and automation.
Source: Syrma SGS MDA
Indian Electronic Manufacturing services (EMS) Industry
India’s EMS market is expanding rapidly from being a major importer of electronics to become key player in the global EMS market. As of 2023, India’s EMS market was valued at US$ 36 bn within that mobile phone and consumer electronics are highly weighted sector.
The outlook for India’s EMS industry is highly optimistic forecasted to reach US$ 135 bn by 2026 with a CAGR of 41.1%. This growth is anticipated to fueled by the increasing in outsourcing by original equipment manufactures (OEMs), decline in imported finished goods, growing demand of consumer electronics and rapidly growing EV sector particularly 2W,3W and 4W.
Indian government also aimed to expand electronic market and implemented some policies includes schemes like Promotion of Manufacturing of Electronics Components and Semiconductors (SPECS), Modified Electronic Manufacturing Clusters (EMC 2.0), Production Linked Incentives (PLI) and Phased Manufacturing Programme (PMP). Government incentivizing 20-25% of the capital expenditure through its M-SIPS schemes for electronic manufacturers. Additionally government allocate INR 76,000 crores for development of semiconductor and display manufacturing in India.
Indian EMS market is set for robust growth in the next decade. Aim to become leading manufacturing hub for electronic manufacturing as OEMs look to diversify their production bases away from china. Government initiatives like ‘Make in India’ and ‘PLI schemes’ will encourage both domestic and foreign companies to manufacture in India.
Key drivers for growth of the Indian EMS Industry
- High Outsourcing by OEMs
- Growing Demand of Electronics
- Large Domestic Market
- ‘China +1’ Strategy
- Government Initiatives
Source: Avalon and Syrma SGS MDA
Global PCB Market Outlook
The printed circuit board assembly (PCBA) market is expected to grew at CAGR of 5% to reach valuation of US$ 145 Bn by the CY2032. This growth is attributed to factor such as rising demand for consumer electronics, automotive electronics and industrial automation and due to the rising expansion of Internet of Things (IoT). The key growth driver for PCBA and PCB is growing need for electronic devices in industries such as consumer electronics, automotive, healthcare and telecommunications.
Source: Kaynes MDA
https://exactitudeconsultancy.com/reports/38060/pcb-pcba-market/
Indian PCB Market Outlook
Indian PCB or PCBA market reached a valuation of US$ 5.4% Bn in CY2023. According to the IMARC group, the market is expected to reach US$ 21.3% Bn representing a CAGR of 16.4% during the period from 2023 to 2032. The rising demand for consumer electronics products, increasing application in electric vehicles and favorable government policy and schemes are the key factor driving the Indian PCB market.
Source: Kaynes MDA and
https://www.imarcgroup.com/indian-pcb-market
Company Overview
Kaynes Technology is engaged in the business of electronic manufacturing, offer end to end and IoT enabled solution, expertise in electronics system design and manufacturing (ESDM) services. It has three decades of experience in providing conceptual design, process engineering, integrated manufacturing and life cycle support. It serves various industries such as automotive, industrial, aerospace, defence, outer-space, nuclear, medical, railways, internet of things (IoT) and Information technology. Kaynes business vertical can be classified as follow:
OEM – Box Build: Kaynes specialize in delivering “Build to Print’ or ‘Build to specifications’ of complex box build, sub-systems and products across various industry verticals.
OEM – Turnkey Solution – Printed Circuit Board Assemblies (PCBA): Kaynes encompass electronic manufacturing of PCBA, cable harnesses, magnetics and plastics ranging from prototyping to product realization including mass manufacturing.
Original Design Manufacturing (ODM): Kaynes offers ODM services in smart metering technology, smart street lighting, BLDC technology, inverter technology, gallium nitride-based charging technology and IoT solutions for smart consumer appliances and devices.
Product engineering and IoT Solutions: Kaynes offer product engineering services include embedded design, firmware and software development, mechanical design. They also provide IoT solution such as cloud based services, IoT data analytics platform.
Diversified Product Portfolio
Kaynes offers a wide-ranging product portfolio having applications across industry verticals such as automotive, telecom, aerospace and defence, space, medical, IoT and industrial, each of which is individually growing. This in turn limits exposure to downturns associated with a particular vertical. It also ensures consistency of revenues across periods on account of customers serving different industry verticals with different business or industry cycles.
Long standing relationship with marquee customer base
Over the past three decades, Kaynes has established long-term relationships with well known customers across the industries it caters to. Kaynes has a diversified customer base and has served 350+ customers in 26 countries. Their continued success is, in part, due to customer-centric practices such as open book costing, internal and external audits, and direct shipments to end customers.
Manufacturing Facility
Kaynes currently operates through its nine advanced manufacturing facilities to undertake high mix and high-value products with variable or flexible volumes. Kaynes’ operations are complying with global standards with 12 global accreditations—most for an ESDM company in India. It has a dedicated research facility at Mysore, Bengaluru and Ahmedabad with a 75+ member R&D team
Share holding pattern
Company’s majority holding held by promoter (57.83%) followed by FIIs 14.27%, DIIs 17.88% and public 10.03% as of June 2024. Promoter holding has declined from 63.57% in Sep 2023 to 57.83% in Dec 2023 due to the dilution of fresh issue. whereas FIIs and DIIs has increased their holding. Public holding has been continuously decreasing from high of 16.48% in Dec 2022 to 10% in June 2024 represent high interest of big hand in the company.
| Shareholding pattern |
Mar-23 |
Mar-24 |
Jun-24 |
| Promoters |
63.57% |
57.83% |
57.83% |
| FIIs |
8.16% |
14.19% |
14.27% |
| DIIs |
12.96% |
18.36% |
17.88% |
| Public |
15.31% |
9.61% |
10.03% |
Since the company listed ( Nov-2022) big spike seen in big shark holding such as FIIs and DIIs. FIIs holding has jump 67% from 8.53% holding in Dec 2022 to 14.27% holding in June 2024 and DIIs holding spike 56% from 11.43% holding to 17.88% holding during the same period. While public holding has declined 39% from 16.48% holding to 10% holding during the same period. This robust growth seen in big shark holding represent strong confidence and high growth potential in the business.
| Shareholding pattern |
Dec-22 |
Mar-23 |
Jun-23 |
45170 |
Dec-23 |
Mar-24 |
Jun-24 |
| Promoters |
63.57% |
63.57% |
63.57% |
63.57% |
57.83% |
57.83% |
57.83% |
| FIIs |
8.53% |
8.16% |
7.96% |
9.90% |
12.71% |
14.19% |
14.27% |
| DIIs |
11.43% |
12.96% |
13.12% |
15.58% |
19.04% |
18.36% |
17.88% |
| Public |
16.48% |
15.31% |
15.35% |
10.94% |
10.41% |
9.61% |
10.03% |
Q1FY25 Results Update
Strong order book promise to fuel revenue growth ahead
Company’s order book jumped 68% YoY and 22% sequentially to reached 5,039 Cr in Q1FY25. Sequentially 22% growth in order book driven by increase in average order inflow per month by 48% QoQ to 476 Cr. This robust growth in order book led by strong demand across verticals specially industrial and EV, Aerospace, outer space and strategic electronics along includes railway segment.
Company has achieved sizable customer in aerospace, outer space and strategic medical electronic vertical will secured revenue growth in upcoming years.
New Business Updates
OSAT business door open soon; government approval in final stage
Company’s new investment in OSAT business is in the final stage of obtaining government approval. Company had already acquired land in the Gujarat where construction will start soon. Company expecting positive response in the OSAT business by FY26. Along with this HDI printed circuit board project going as per plan, in the final stage of land acquisition. Management expecting to post revenue in HDI printed circuit business by FY26.
Robust topline growth but margin slight down
Strong growth post in topline/bottom line due to industrial vertical but margin remain slight lower
During the quarter, revenue grew 70% YoY but QoQ tank by 21% to 504 Cr. strong growth in topline on YoY basis led by strong demand in industrial (includes EV), aerospace & strategic electronics verticals. Segment wise growth driven by Box build (up 145% YoY) and PCBA (up 46% YoY) while ODM and product engineering segment post negative growth by 66% and 58% YoY respectively.
|
Q1FY25 |
Q1FY24 |
YoY% |
Q4FY24 |
QoQ% |
| Net Revenue |
504 |
297 |
70% |
637 |
-21% |
| COGS |
366 |
205.8 |
78% |
479 |
-24% |
| Gross Profit |
138 |
91.2 |
51% |
158 |
-13% |
| Gross Margin% |
27% |
31% |
-11% |
25% |
10% |
| Employee Cost |
33.5 |
24 |
40% |
32 |
5% |
| Other expenses |
37.2 |
28 |
33% |
31 |
20% |
| EBITDA |
67.3 |
39.2 |
72% |
95 |
-29% |
| EBITDA Margin% |
13.35% |
13.20% |
1% |
14.91% |
-10% |
| Depreciation |
8.4 |
5 |
68% |
7 |
20% |
| EBIT |
58.9 |
34.2 |
72% |
88 |
-33% |
| EBIT Margin% |
12% |
12% |
1% |
14% |
-15% |
| Interest expense |
28 |
11 |
155% |
15 |
87% |
| Other Income |
28.3 |
8 |
254% |
29 |
-2% |
| PBT |
59.2 |
31.2 |
90% |
102 |
-42% |
| Total Tax |
13.4 |
7.6 |
76% |
21 |
-36% |
| PAT |
45.8 |
23.6 |
94% |
81 |
-43% |
| PAT Margin% |
9% |
8% |
14% |
13% |
-29% |
| EPS (Diluted) |
7.2 |
4.1 |
76% |
12.7 |
-43% |
| No. of shares |
6.4 |
5.8 |
10% |
6.4 |
0% |
Business Mix
Revenue break up: Kaynes report a revenue of 1,805 Cr in FY24 with 37% CAGR during FY20-FY24. Industrial includes EV was key contributor with 48% mix followed by automotive at 29%, railways at 11%, IoI/IT at 7%, aerospace at 3% and medical at 3%. The Industrial vertical was key driver in the last 5 years and its mix has improved to 48% in FY24 vs 20% in FY19.
Segment wise revenue mix: Segment wise, OEM-PCBA contribute 55% of the revenue mix, followed by OEM-Box Build at 42%, IoT/IT at 2% and ODM at 1% in FY24. OEM-PCBA was key driver in the last five years, and its mix has improved to 55% in FY24 vs 52% in FY19.
Order book up 3.3x in last three years: Kaynes’ order book has grown by 3.3x from 1,517 in FY22 to 5,039 Cr in Q1FY25 during the last three years. This strong order book fuel the revenue visibility in the upcoming years. Automotive orders get 6-9 months in execution, and aerospace and railways get around two years. Weighted average is 1.5 years execution period.
| Year End (March) |
FY20 |
FY21 |
FY22 |
FY23 |
FY24 |
Q1FY25 |
| Order Book |
352 |
670 |
1,517 |
2,486 |
4,115 |
5,039 |
| Change in O.B |
|
318 |
847 |
969 |
1629 |
924 |
| Revenue |
368 |
421 |
706 |
1126 |
1805 |
2309 |
Focus on Widening client base to de-risk
Kaynes has de-risked its business by widening client base. Top 1 client contribute 26% of the business while top-5 and top-10 contribute 53% and 69% respectively. Top-5 and top-10 contribution rose to 53% and 69% in FY24 vs 37% and 51% in FY22 respectively. This trend prove the lower client concentration in the company’s business model.
Kaynes has long-standing relationships with its clients, and the average relationship is in the range of 9-10 years whereas industrial and railways clients are >10 years. In automotive, IJL (India Japan Lighting Pvt Ltd) is the top client while in the industrial vertical, the key customers are from global manufacturers of electronic instruments and electromechanical devices. In the railways vertical, Siemens and Hitachi are the key customers.
Peer Comparison
Kaynes has been one of the fastest growing horse in EMS players, recording revenue/EBITDA/PAT of 37/44/108% over FY20-24. Particularly in topline growth, Kaynes stand first at 37% CAGR followed by Syrma at 30%, Cyient DLM at 21% and Avalon at 6%. This growth momentum will continue in the coming years led by strong order book, industry tailwind and entrance in new business vertical.
Income statement
| Year End (March) |
FY20 |
FY21 |
FY22 |
FY23 |
FY24 |
FY25E |
FY26E |
FY27E |
FY28E |
FY29E |
| Net Revenue |
368 |
421 |
706 |
1126 |
1,805 |
2,996 |
4,195 |
5,523 |
6,689 |
7,693 |
| Growth YoY% |
0% |
14% |
68% |
59% |
60% |
66% |
40% |
32% |
21% |
15% |
| COGS |
242 |
286 |
489 |
780 |
1,330 |
2,067 |
2,894 |
3,811 |
4,616 |
5,308 |
| Gross Profit |
127 |
135 |
217 |
346 |
475 |
929 |
1,300 |
1,712 |
2,074 |
2,385 |
| Gross Margin% |
34.36% |
31.98% |
30.70% |
30.73% |
26.32% |
31.00% |
31.00% |
31.00% |
31.00% |
31.00% |
| Employee Cost |
42 |
46 |
60 |
77 |
103 |
210 |
294 |
387 |
468 |
538 |
| Other expenses |
44 |
48 |
63 |
101 |
118 |
240 |
336 |
442 |
535 |
615 |
| EBITDA |
41 |
41 |
94 |
168 |
254 |
479 |
671 |
884 |
1,070 |
1,231 |
| EBITDA Margin% |
11.08% |
9.72% |
13.27% |
14.95% |
14.07% |
16.00% |
16.00% |
16.00% |
16.00% |
16.00% |
| Depreciation |
7 |
10 |
13 |
19 |
25 |
60 |
84 |
110 |
134 |
154 |
| EBIT |
34 |
31 |
81 |
150 |
229 |
419 |
587 |
773 |
936 |
1,077 |
| EBIT Margin% |
9% |
7% |
11% |
13% |
13% |
14% |
14% |
14% |
14% |
14% |
| Interest expense |
23 |
24 |
26 |
35 |
53 |
52 |
52 |
52 |
52 |
52 |
| Other Income |
2 |
4 |
4 |
11 |
56 |
30 |
42 |
55 |
67 |
77 |
| PBT |
13 |
11 |
59 |
126 |
232 |
397 |
577 |
776 |
951 |
1,102 |
| Total Tax |
2 |
1 |
17 |
31 |
49 |
99 |
144 |
194 |
238 |
275 |
| Tax rate% |
17% |
10% |
29% |
24% |
21% |
25% |
25% |
25% |
25% |
25% |
| PAT |
11 |
10 |
42 |
95 |
183 |
298 |
433 |
582 |
714 |
826 |
| PAT Margin% |
3% |
2% |
6% |
8% |
10% |
10% |
10% |
11% |
11% |
11% |
| EPS |
16.4 |
2.3 |
9 |
16.4 |
28.68 |
46.57 |
67.64 |
90.99 |
111.49 |
129.12 |
| EPS Growth (%) |
0% |
-86% |
291% |
82% |
75% |
62% |
45% |
35% |
23% |
16% |
Balance Sheet
| Year End (March) |
FY20 |
FY21 |
FY22 |
FY23 |
FY24 |
| Sources of funds |
|
|
|
|
|
| Equity Capital |
7 |
8 |
47 |
58 |
64 |
| Reserves |
98 |
131 |
156 |
901 |
2,423 |
| Total Shareholders Funds |
104 |
139 |
203 |
959 |
2,487 |
| Long term Debt |
10 |
17 |
29 |
15 |
11 |
| Short term Debt |
113 |
122 |
140 |
121 |
295 |
| Total Debt |
122 |
140 |
170 |
136 |
306 |
| Net Deferred Taxes |
8 |
5 |
7 |
8 |
4 |
| Other Non Current Liabilities |
3 |
13 |
25 |
25 |
20 |
| Total Sources of Funds |
238 |
297 |
404 |
1,128 |
2,817 |
| Application of Funds |
|
|
|
|
|
| Net Block |
50 |
65 |
82 |
107 |
285 |
| Goodwill |
2 |
2 |
2 |
2 |
15 |
| CWIP |
12 |
13 |
8 |
29 |
76 |
| Intangible assets |
5 |
13 |
29 |
22 |
46 |
| Non Current Investment |
2 |
2 |
2 |
3 |
145 |
| Other Non Current Asset |
8 |
6 |
13 |
24 |
110 |
| Total Non-Current Assets |
79 |
100 |
136 |
188 |
677 |
| Inventories |
151 |
164 |
226 |
413 |
548 |
| Debtors |
95 |
122 |
198 |
227 |
355 |
| Other Current Assets |
35 |
19 |
41 |
105 |
151 |
| Cash & Equivalents |
12 |
14 |
22 |
486 |
1,525 |
| Total Current Assets |
294 |
319 |
486 |
1,231 |
2,579 |
| Creditors |
99 |
95 |
164 |
223 |
360 |
| Other current Liabilities & Provns |
35 |
28 |
55 |
68 |
79 |
| Total Current Liabilities |
134 |
123 |
219 |
291 |
439 |
| Net Current Assets |
160 |
196 |
268 |
940 |
2,140 |
| Total Application of Funds |
238 |
297 |
404 |
1,128 |
2,817 |
Cashflow Statement
| Year End (March) |
FY20 |
FY21 |
FY22 |
FY23 |
FY24 |
| Profit from operations |
43 |
20 |
98 |
171 |
272 |
| Adjustments: |
|
|
|
|
|
| Receivables |
29 |
-28 |
-76 |
-29 |
-142 |
| Inventory |
-29 |
-13 |
-63 |
-187 |
-135 |
| Payables |
16 |
9 |
92 |
87 |
145 |
| Loans Advances |
-12 |
0 |
-29 |
-34 |
-23 |
| Other WC items |
0 |
21 |
1 |
1 |
1 |
| Working capital changes |
4 |
-11 |
-75 |
-162 |
-154 |
| Interest paid |
0 |
21 |
0 |
0 |
0 |
| Direct taxes |
-2 |
-4 |
-2 |
-50 |
-48 |
| Other operating items |
0 |
1 |
0 |
0 |
0 |
| Operating Cashflow |
45 |
27 |
21 |
-41 |
70 |
| Capex |
-31 |
-25 |
-42 |
-58 |
-383 |
| Free cashflow |
14 |
2 |
-21 |
-99 |
-313 |
| Investments |
22 |
1 |
-2 |
-435 |
-1,123 |
| Investing Cashflow |
-9 |
-24 |
-44 |
-493 |
-1506 |
| Proceeds from shares |
0 |
1 |
0 |
660 |
1,344 |
| Proceeds from borrowings |
8 |
7 |
30 |
0 |
174 |
| Repayment of borrowings |
-20 |
-12 |
0 |
-34 |
-4 |
| Interest paid fin |
-24 |
-22 |
-26 |
-35 |
-53 |
| Other financing items |
0 |
26 |
23 |
-37 |
-32 |
| Financing Cashflow |
-36 |
0 |
27 |
554 |
1429 |
|
|
|
|
|
|
| Net Cashflow |
0 |
3 |
4 |
20 |
-7 |
Ratio Analysis
| Year End (March) |
FY20 |
FY21 |
FY22 |
FY23 |
FY24 |
| Profitability (%) |
|
|
|
|
|
| Gross Profit Margin |
34% |
32% |
31% |
31% |
26% |
| EBITDA Margin |
11% |
10% |
13% |
15% |
14% |
| EBIT Margin |
9% |
7% |
11% |
13% |
13% |
| PBT Margin |
4% |
3% |
8% |
11% |
13% |
| PAT Margin |
3% |
2% |
6% |
8% |
10% |
| Return (%) |
|
|
|
|
|
| ROE |
11% |
7% |
21% |
10% |
7% |
| ROCE |
5% |
3% |
10% |
8% |
6% |
| Efficiency (x) |
|
|
|
|
|
| Total Asset Turnover |
1.0 |
1.0 |
1.1 |
0.8 |
0.6 |
| Fixed Asset Turnover |
7.3 |
6.5 |
8.6 |
10.5 |
6.3 |
| Inventory Turnover |
1.6 |
1.8 |
2.5 |
2.4 |
2.8 |
| Debtor Turnover |
3.9 |
3.9 |
4.4 |
5.3 |
6.2 |
| Debtor days |
93 |
104 |
101 |
73 |
71 |
| Inventory days |
225 |
206 |
167 |
191 |
148 |
| Payables days |
148 |
120 |
121 |
103 |
97 |
| Cash conversion cycle (days) |
170 |
190 |
147 |
160 |
122 |
| Leverage |
|
|
|
|
|
| Debt/Equity |
1.2 |
1.0 |
0.8 |
0.1 |
0.1 |
| Debt/Assets |
0.3 |
0.3 |
0.3 |
0.1 |
0.1 |
| Debt/EBITDA |
3.0 |
3.4 |
1.8 |
0.8 |
1.2 |
| Debt/Capital |
0.5 |
0.5 |
0.4 |
0.1 |
0.1 |
| CFO/Debt |
0.4 |
0.2 |
0.1 |
-0.3 |
0.2 |
| Interest Coverage |
1.5 |
1.3 |
3.1 |
4.3 |
4.3 |
| Cash Ratio |
|
|
|
|
|
| Free Cashflow |
14 |
2 |
-21 |
-99 |
-313 |
| CFO/Total Assets |
0.1 |
0.1 |
0.0 |
0.0 |
0.0 |
| CFO/Total Debt |
0.4 |
0.2 |
0.1 |
-0.3 |
0.2 |
| CFO/Capex |
-1.5 |
-1.1 |
-0.5 |
0.7 |
-0.2 |
| Valuations |
|
|
|
|
|
| P/E (x) |
|
|
|
58.81 |
100.41 |
| P/BV (x) |
|
|
|
5.8 |
7.4 |
| EV/EBITDA (x) |
43.5 |
252 |
122.3 |
82.6 |
54.77 |
| Dividend Yield (%) |
0% |
0% |
0% |
0% |
0% |
The image added is for representation purposes only
