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7/30/2019 Styrolution 1Q CY 2013
1/14
Please refer to important disclosures at the end of this report 1
Y/E Dec. (` cr) 1QCY13 4QCY12 % chg (qoq) 1QCY12 % chg (yoy)Total operating income 242 255 (5.0) 236 2.6EBITDA 23 24 (1) 23 3
EBITDA Margin (%) 9.7 9.3 40bp 9.7 (0)bp
Adj. PAT 15 15 1 16 (6)Source: Company, Angel Research
Styrolution ABS (Styrolution) reported a poor set of numbers for 1QCY2013.
Top-line growth for the quarter was flat at 2.6% yoy to `242cr, 6.9% lower than
our estimate of `260cr. The poor performance is attributable to the current
slowdown in the economy which has subdued the growth of user industries. The
EBITDA was higher by 3.0% yoy to `23cr, and 6.13% lower than our expectation,
owing to poor top-line growth. The EBITDA margin for the quarter remained
constant yoy at 9.7%, better than our estimate of 9.6%. The company reported a
net profit of `15cr, 15% lower than our estimates of `18cr.
Persisting short supply coupled with capacity expansion to boost growthStyrolution had expanded its capacity of ABS and SAN. This provides the company
an opportunity to reap benefits owing to domestic ABS demand supply gap (met
by imports) which has persisted for long and continues to exist. In addition to
capacity expansion the company has come up with many tailor made productstaking advantage of ABS flexibility of composition and structure, which allows its
use in diverse applications.
Outlook and valuation: We expect Styrolutions revenue to post a CAGR of 11.2%over CY2012-14E to `1,223cr in CY2014E on the back of consistent
developments by the company. The EBITDA and net profit are expected to post a
CAGR of 11.1% and 11.8% respectively over CY2012-14E. With recent correction
in the stock price, Styrolution is available at an attractive valuation of 11.1x PE
and EV/Sales of 0.7x for CY2014E. As we rollover to CY2014E, we continue tomaintain our Buy recommendation on the stock with a revised target price of`617, based on a target PE of 14x, providing 26% upside from current levels.Key financials (Standalone)
Y/E Dec. (` cr) CY2010 CY2011 CY2012E CY2013E CY2014ENet sales 742 825 989 1,068 1,223% chg 32.8 11.2 19.8 8.1 14.4
Adj. net profit 70 54 62 67 78% chg 43.0 (22.9) 14.8 7.9 15.8
OPM (%) 15.2 9.9 9.6 9.6 9.6EPS (`) 39.8 30.7 35.3 38.1 44.1
P/E (x) 12.3 15.9 13.9 12.9 11.1
P/BV (x) 2.6 2.3 2.0 1.7 1.5
RoE (%) 23.1 15.1 15.2 14.4 14.7
RoCE (%) 50.7 17.9 16.9 17.0 18.5
EV/Sales (x) 1.0 1.0 0.9 0.8 0.7
EV/EBITDA (x) 6.3 10.1 9.2 8.3 6.9
Source: Company, Angel Research
BUYCMP `489
Target Price `617
Investment Period 12 Months
Stock Info
Sector
Net Debt (`cr) 19
Bloomberg Code
Shareholding Pattern (%)
Promoters 87.3
MF / Banks / Indian Fls 2.3
FII / NRIs / OCBs 0.9
Indian Public / Others 9.5
Abs.(%) 3m 1yr 3yr
Sensex (3.0) 11.9 10.8
STYR (26.5) (33.0) 42
Nifty 5,904
Reuters Code STYR.BO
STAL.IN
Avg. Daily Volume 1,469
Face Value (`) 10
BSE Sensex 19,388
52 Week High / Low 847 / 470
Petrochemicals
Market Cap (`cr) 860
Beta 0.5
Twinkle GosarTel: 022- 3935 7800 Ext: [email protected]
Styrolution ABS (India)Performance Highlights
1QCY2013 Result Update | Petrochemicals
April 29, 2013
7/30/2019 Styrolution 1Q CY 2013
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Styrolution ABS | 1QCY2013 Result Update
April 29, 2013 2
Exhibit 1:1QCY2013 performance (Standalone)
Y/E Dec. (` cr) 1QCY13 4QCY12 % chg (qoq) 1QCY12 % chg (yoy) CY12 CY11 % chgTotal operating income 242.1 254.9 (5.0) 235.8 2.6 989.4 826.4 19.7Net raw material 179.3 187.3 (4.3) 179.5 (0.1) 746.3 619.7 20.4(% of Sales) 74.1 73.5 76.1 75.4 75.0
Employee cost 7.2 6.9 4.0 6.7 7.6 27.5 25.8 6.8
(% of Sales) 3.0 2.7 2.8 2.8 3.1
Other Expenses 32.1 37.0 (13.1) 26.9 19.7 121.4 99.8 21.6
(% of Sales) 13.3 14.5 11.4 12.3 12.1
Total expenditure 218.6 231.2 (5.4) 213.0 2.6 895.1 745.3 20.1EBITDA 23.4 23.7 (1.0) 22.8 2.6 94.3 81.1 16.3EBITDA Margin (%) 9.7 9.3 40bp 9.7 (0)bp 9.5 9.8 (28)bp
Interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -
Depreciation 3.2 3.3 (0.3) 3.3 (0.9) 13.1 13.9 (5.8)
Other income 2.2 2.1 7.0 4.2 (48.0) 9.7 10.3 (6.4)
PBT 22.4 22.5 (0.3) 23.8 (5.9) 90.9 77.5 17.2(% of Sales) 9.2 8.8 10.1 9.2 9.4
Tax 7.3 7.6 (3.6) 7.7 (5.2) 30.0 23.5 27.5
(% of PBT) 32.6 33.7 32.4 33.0 30.3
Adjusted PAT 15.1 14.9 1.3 16.1 (6.2) 60.9 54.0 12.7PATM (%) 6.2 5.8 6.8 6.2 6.5
Source: Company, Angel Research
Exhibit 2:Actual v/s Angel Estimates
Actual v/s Angel's Estimates Actual (` cr) Estimate (` cr) % variationTotal Income 242 260 (6.9)EBITDA 23 25 (6)
EBITDA Margin 9.7 9.6 (8)bp
Adjusted PAT 15 18 (15)Source: Angel Research
For 1QCY2013, the top-line reported a flat growth of 2.6% yoy to `242cr, 6.9%
lower than our estimate of `260cr. The poor performance is attributable to the
current slowdown in the economy which has subdued the growth of Styrolutions
user industries like automobile and home appliances. The EBITDA was higher by
3.0% yoy to `23cr, 6.13% lower than our expectation, owing to poor top-line
growth. The EBITDA margin for the quarter remained constant yoy at 9.7%, better
than our estimate of 9.6%. The company reported a net profit of `15cr, 15% lower
than our estimates of `18cr.
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Styrolution ABS | 1QCY2013 Result Update
April 29, 2013 3
Exhibit 3:Sluggish user industry impacts companys growth
Source: Company, Angel Research
Exhibit 4:EBITDA and EBITDA margin
Source: Company, Angel Research
Investment arguments
Capacity expansion to compliment unfulfilled ABS demand
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.
Styrolution has expanded its capacity of ABS from 60,000TPA in 2010to
80,000TPA in 2011 and has plans to extend capacity further to 110,000TPA in
CY2013. This extended capacity will enable Styrolution 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.
Exhibit 5:Unfulfilled domestic demand owing to demand supply gap
Source: Company, Angel Research
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 with
many tailor made products taking advantage of ABS flexibility of composition and
structure, which allows its use in diverse applications.
201
206
208
211
236
236
263
255
242
20.714.7 12.2 (0.2)
17.3 14.4
26.520.7 2.6
(5)
0
5
10
15
20
25
30
0
50
100
150
200
250
300
1QCY11
2QCY11
3QCY11
4QCY11
1QCY12
2QCY12
3QCY12
4QCY12
1QCY13
(%)
(`cr)
Revenue ( LHS) Revenue growth (RHS )
31
24
12
13
23
14
33
24
23
15.4
11.8
6.0 6.4
9.7
6.1
12.7
9.39.7
0
3
6
9
12
15
18
0
10
20
30
40
1QCY11
2QCY11
3QCY11
4QCY11
1QCY12
2QCY12
3QCY12
4QCY12
1QCY13
(%)
(`cr)
EBITD A (LH S) EBITD A M argin (RH S)
0
20
40
60
80
100
120
140
160
180
CY2008 CY2009 CY2010 CY2011 CY2012 CY2013E CY2014E
('000TPA)
ABS Production ABS import ABS demand
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Styrolution ABS | 1QCY2013 Result Update
April 29, 2013 4
Exhibit 6: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
Exhibit 7:Application Industry Composition
Source: Company
Potential delisting candidate and high return ratios
Styrolution, with a 87.3% promoter holding, is considered as a potential de-listing
candidate, since the June 2010 amendment of Securities Contract Act mandates
listed companies to have a minimum of 25% of public shareholding by June 2013.
Moreover, the company has successfully delivered handsome returns of more than
15% on equity as well as invested capital over last five years, thereby assuring
robust returns on one hand and high stock price on the other. If the company goes
for de-listing, it would be a win-win situation on both the fronts.
HomeAppliances
30%
Automobiles
28%Telecom
5%
Electrical&electronics
7%
Businessmachineofficeautomation
8%
Luggage&busbody4%
Stationary/helmet
9%
Textiles
3%
Others
6%
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Styrolution ABS | 1QCY2013 Result Update
April 29, 2013 5
Financials
Exhibit 8: Key assumptions
Particulars (%) CY2013E CY2014ETotal Volume Growth 5.7 6.0
Total Realisation Growth 8.1 14.4
Weighted Change in RM 1.0 4.0
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 5.7% yoy and 6.0% yoy in CY2013E and
CY2014E, respectively.
On the back of increased feedstock prices, raw-material prices are assumed to
grow, which would be passed on to the consumers by price hikes. Hence, theEBITDA margin is expected to remain constant at 9.6% in both CY2013E and
CY2014E.
Exhibit 9: Change in estimates
Y/E Dec. Earlier estimates Revised estimates % changeCY2013E CY2014E CY2013E CY2014E CY2013E CY2014ENet Sales (` cr) 1,069 1,223 1,069 1,223 0.0 0.0EBITDA Margin (%) 9.7 9.7 9.6 9.6 9bp (18)bp
EPS (`) 40 47 38 44 (4.5) (5.2)Source: Angel Research
Net sales to grow at 11.2% CAGR over CY2012-14E
Considering the capacity expansion and other recent developments, coupled with
revived in demand for ABS from the automobile and home appliances sectors, the
companys net sales are expected to grow at a CAGR of 11.2% over CY2012-14E
to `1,223cr in CY2014E.
Exhibit 10: Capacity expansion, revival in user industry to drive growth
Source: Company, Angel Research
559
742
825
989
1,0
68
1,2
23
(7.4)
32.8
11.2
19.88.1
14.4
(10)
(5)
0
5
10
15
20
25
30
35
0
200
400
600
800
1000
1200
1400
CY2009 CY2010 CY2011 CY2012E CY2013E CY2014E
(%)
(`
cr)
Net Sales (LHS) Net Sales growth (RHS)
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Styrolution ABS | 1QCY2013 Result Update
April 29, 2013 6
EBITDA to post a CAGR of 11.1% over CY201214E
On the back of increased sales aided by operational efficiency, the EBITDA for the
company is expected to register a CAGR of 11.1% over CY2012-14E to `117cr in
CY2014E. However, high feedstock prices coupled with substantial rupee
depreciation are expected to raise the manufacturing cost, which in turn will be
passed on to the customers by price hike. Hence, we expect the margin to remain
constant at 9.6% in CY2013E and CY2014E.
Exhibit 11: EBITDA margin to normalise
Source: Company, Angel Research
Owing to stable operating performance, we expect net profit to post a CAGR of
11.8% over CY2012-14E to `78cr in CY2014E and net profit margin to remainconstant at 6.3%.
Exhibit 12: PAT growth on an uptrend
Source: Company, Angel Research
86 113 82 95 103 117
15.4
15.2
9.99.6
9.6
9.6
0
3
6
9
12
15
18
0
20
40
60
80
100
120
140
CY2009 CY2010 CY2011 CY2012E CY2013E CY2014E
(%)
(`c
r)
EBITDA (LHS) EBITDA margin (RHS)
49 70 54 62 67 78
8.8
9.4
6.5 6.36.3
6.3
0
1
2
3
4
5
6
7
8
9
10
0
10
2030
40
50
60
70
80
90
CY2009 CY2010 CY2011 CY2012E CY2013E CY2014E
(%)
(`cr)
PAT (LHS) PAT margin (RHS)
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Styrolution ABS | 1QCY2013 Result Update
April 29, 2013 7
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 13: Butadiene and Styrene price trend
Source: Bloomberg
Exhibit 14: Acrylonitrile price trend
Source: Bloomberg
0
5
10
15
20
2530
35
40
45
0
10
20
30
40
5060
70
80
90
Sep-0
9
Mar-10
Sep-1
0
Mar-11
Sep-1
1
Mar-12
Sep-1
2
Mar-13
(`/pound)
Butadine (LHS) Styrene (RHS)
75
85
95
105
115
125
135
145
155
Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13
('000`/MT)
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Styrolution ABS | 1QCY2013 Result Update
April 29, 2013 8
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.
Exhibit 15: INR-USD exchange rate
Source: Bloomberg
Imports cheap as compared to domestic ABS
Imported ABS is available at a cheaper rate as compared to domestically available
ABS. Though the percentage price difference between international and domestic
ABS has narrowed, there is still a gap of around 18%.
Exhibit 16: International and domestic price variation of ABS
Particulars 2006 2007 2008 2009 2010 2011International ABS price (`) 80,745 83,596 83,820 92,905 84,773 107,686
Styrolution ABS price (`) 96,838 104,262 108,822 122,879 101,097 127,226
Price difference (%) 20 25 30 32 19 18
Source: Company, Department of Commerce
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 17: Relative Valuation
Y/E (TTM) Net Sales(`cr) OPM(%) PAT(`cr) EPS(`) RoE(%) P/E(x) P/BV(x) EV/Sales (x)Styrolution ABS^ 995 9.6 62 35.3 13.8 13.8 1.9 0.9
BASF India* 3,873 6.0 115 26.6 10.0 21.3 2.1 0.7
Clariant Chemicals^ 1,109 12.8 94 35.4 17.2 13.1 2.3 1.7
Source: Company, Capital Line, *TTM ended Dec12 quarter, ^TTM ended Mar13 quarter
40
42
44
46
48
50
52
54
56
58
Sep-09 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13
7/30/2019 Styrolution 1Q CY 2013
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Styrolution ABS | 1QCY2013 Result Update
April 29, 2013 9
Outlook and valuation
We expect Styrolutions revenue to post a CAGR of 11.2% to `1,223cr over
CY2012-14E on the back of consistent expansion plans of the company coupled
with revival in user industry. EBITDA is expected to grow at 11.1% CAGR to `117crin CY2014E. The rise in manufacturing cost due to high feedstock prices and
currency depreciation is expected to be passed on to the consumers by price hike,
thereby offsetting any negative impact on EBITDA margin. Hence, EBITDA margin
is expected to remain constant at 9.6% in CY2013E and CY2014E. The net profit is
expected to post a CAGR of 11.8% to `78cr in CY2014E while margins are to
remain stable at 6.3% owing to stable operating performance. After the recent
correction in the stock price, Styrolution is available at an attractive PE valuation of
11.1x and 0.7x EV/Sales for CY2014E. As we rollover to CY2014E, we maintainour Buy recommendation on the stock with a revised target price of `617 based ontarget PE of 14.0x and implied EV/Sales of 0.9x for CY2014E earnings.Exhibit 18: 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 venturebetween 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.
0100
200
300
400
500
600
700
800
900
Apr-08
Oct-08
Apr-09
Oct-09
Apr-10
Oct-10
Apr-11
Oct-11
Apr-12
Oct-12
Apr-13
(`)
Price 2.5x 8.5x 14.5x 20.5x
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Styrolution ABS | 1QCY2013 Result Update
April 29, 2013 10
Profit and Loss (Standalone)
Y/E December (` cr) CY2010 CY2011 CY2012E CY2013E CY2014EGross sales 816 910 1,090 1,178 1,348
Less: Excise duty 74 84 101 109 125Net Sales 742 825 989 1,068 1,223
Other operating income - - - - -Total operating income 742 825 989 1,068 1,223% chg 32.8 11.2 19.8 8.1 14.4
Net Raw Materials 522 620 750 814 932
% chg 44.8 18.8 21.0 8.6 14.5
Other Mfg costs 36 41 46 45 52
% chg 5.7 12.9 10.7 (0.6) 14.4
Personnel 20 24 27 30 34
% chg 16.1 16.1 16.2 8.1 14.4
Other 51 59 71 77 88
% chg (15.9) 15.9 19.8 8.1 14.4
Total Expenditure 629 744 894 965 1,105
EBITDA 113 82 95 103 117% chg 31.0 (27.6) 16.4 8.2 14.1
EBITDA Margin 15.2 9.9 9.6 9.6 9.6
Depreciation & Amortisation 14 14 14 16 16
EBIT 99 68 82 87 102% chg 38.0 (31.5) 20.3 7.2 16.0
(% of Net Sales) 13.3 8.2 8.3 8.2 8.3
Interest & other Charges 2 2 1 - -
Other Income 5 11 11 12 13
(% of Net Sales) 0.7 1.4 1.1 1.1 1.1
Recurring PBT 97 66 81 87 102% chg 37.9 (31.9) 22.0 8.3 16.0
PBT (reported) 103 78 92 99 115Tax 33 24 30 32 37
(% of PBT) 31.8 30.3 32.6 32.6 32.6
PAT (reported) 70 54 62 67 78Extraordinary Expense/(Inc.) (0) (0) - - -
ADJ. PAT 70 54 62 67 78% chg 43.0 (22.9) 14.8 7.9 15.8
(% of Net Sales) 9.4 6.5 6.3 6.3 6.3
Basic EPS (`) 40 31 35 38 44Fully Diluted EPS (`) 40 31 35 38 44% chg 43.0 (22.9) 14.8 7.9 15.8
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Styrolution ABS | 1QCY2013 Result Update
April 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 317 362 416 475 544
Shareholders Funds 334 380 434 493 562Minority Interest - - - - -Total Loans - 131 67 67 67
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 356 544 533 592 661APPLICATION OF FUNDSGross Block 318 335 362 372 384
Less: Acc. Depreciation 181 195 209 224 240
Net Block 136 140 153 148 144Capital Work-in-Progress 12 - - - -
Lease adjustment - - - - -
Goodwill - - - - -
Investments 93 101 17 21 25Long Term Loans and advances - 35 28 43 49
Other non-current assets - 0 0 0 0
Current Assets 281 318 439 492 572
Cash 60 63 31 57 87
Loans & Advances 41 35 136 147 169
Inventory 71 95 95 98 100
Debtor 109 124 175 189 216
Other current assets - 1 1 1 1
Current liabilities 166 51 104 112 128
Net Current Assets 115 268 335 380 444Mis. Exp. not written off - - - - -
Total Assets 356 544 533 592 661
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Styrolution ABS | 1QCY2013 Result Update
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Cash Flow (Standalone)
Y/E December (` cr) CY2010 CY2011 CY2012 CY2013E CY2014EProfit Before Tax 103 78 92 99 115
Depreciation 14 14 14 16 16Change in WC 16 (330) (99) (20) (34)
Other income (5) (11) (11) (12) (13)
Direct taxes paid (33) (24) (30) (32) (37)
Cash Flow from Operations 95 (273) (34) 51 46(Incr)/ Decr in Fixed Assets (8) (5) (27) (11) (11)
(Incr)/Decr In Investments (21) (43) 91 (18) (10)
Other income 5 11 11 12 13
Cash Flow from Investing (24) (37) 75 (17) (8)Issue of Equity/Preference - 0 - - -
Incr/(Decr) in Debt (2) 142 (65) - -
Dividend Paid (Incl. Tax) (7) (7) (8) (8) (8)
Others (39) 179 - - -
Cash Flow from Financing (48) 314 (73) (8) (8)Incr/(Decr) In B/S Cash 22 4 (32) 25 30
Opening Cash balance 37 60 63 31 57Closing cash balance 60 63 31 57 87
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Styrolution ABS | 1QCY2013 Result Update
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Key Ratios (Standalone)
Y/E December CY2010 CY2011 CY2012 CY2013E CY2014EValuation Ratio (x)P/E (on FDEPS) 12.3 15.9 13.9 12.9 11.1
P/CEPS 10.2 12.7 11.4 10.4 9.2
P/BV 2.6 2.3 2.0 1.7 1.5
Dividend yield (%) 0.8 0.8 1.0 1.0 1.0
EV/Net sales 1.0 1.0 0.9 0.8 0.7
EV/EBITDA 6.3 10.1 9.2 8.3 6.9
EV / Total Assets 2.0 1.5 1.6 1.4 1.2
Per Share Data (`)EPS (Basic) 40 31 35 38 44
EPS (fully diluted) 40 31 35 38 44
Cash EPS 48 39 43 47 53DPS 4 4 4 4 4
Book Value 190 216 247 280 320
DuPont AnalysisEBIT margin 13.3 8.2 8.3 8.2 8.3
Tax retention ratio 0.7 0.7 0.7 0.7 0.7
Asset turnover (x) 3.8 2.2 2.0 2.1 2.2
ROIC (Post-tax) 34.6 12.5 11.4 11.5 12.5
Cost of Debt (Post Tax) - - - - -
Leverage (x) (0.5) (0.1) 0.0 (0.0) (0.1)
Operating ROE 18.8 11.4 11.9 11.2 11.5
Returns (%)ROCE (Pre-tax) 27.5 12.5 15.3 14.8 15.4
Angel ROIC (Pre-tax) 50.7 17.9 16.9 17.0 18.5
ROE 23.1 15.1 15.2 14.4 14.7
Turnover ratios (x)Asset TO (Gross Block) 2.3 2.5 2.7 2.9 3.2
Inventory / Net sales (days) 35 36 36 36 36
Receivables (days) 54 54 54 54 54
Payables (days) 96 92 96 95 94
WC cycle (ex-cash) (days) 27 90 112 110 107
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 (0.1) (0.4)
Int. Coverage (EBIT/ Int.) 55.0 42.1 102.0 - -
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Styrolution ABS | 1QCY2013 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 investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should makesuch investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies
referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and
risks of such an investment.
Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document 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 and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
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 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 Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify,nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. WhileAngel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory,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 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 or in
the past.
Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or 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, pleaserefer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited andits affiliates may have 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%)