1. business and industrial

Company Update | Textile
October 13, 2014
Siyaram Silk Mills
BUY
Earnings traction leads to re-rating
CMP
Target Price
Siyaram Silk Mills (SSML) is a major player in the branded textile business with
portfolio of strong and value-for-money brands like Siyaram’s, J Hampstead,
Oxemberg and Mistair. With the enhanced capacity and increasing diversification
in the revenue profile, the company would be able to sustain its growth
momentum and improve its EBIDTA margin. Further, rise in outsourced
manufacturing and repayment of debt will enable the company to post higher
profits, going forward.
Widening of Portfolio and foray into ladies wear segment to spur growth:
Improvement in market conditions coupled with introduction of new brands and
segments will help SSML to maintain its high growth trajectory. SSML has
launched two new premium cotton brands – Zenesis and Moretti, and has
penetrated further into new growth areas like cotton shirting, linen fabrics etc. The
company has recently forayed into ladies wear (SKD) and ethnic women’s wear
under the brand Siya which is a long term growth driver. This will enable the
company to post a revenue CAGR of 17.8% over FY2014-16E to `1,810cr.
Margins to improve on better product mix: SSML is aiming to increase the share
of readymade garments segment in its product mix, which has higher margins,
thus leading to an overall improvement in the EBITDA margins. The revenue share
of readymade garments is expected to increase to 20% in FY2016E from 16.3%
in FY2014 which will lead to higher EBIDTA margins of 11.4% in FY2016E.
Higher Asset turnover and declining debt to boost profitability: The asset turnover
(gross block) is expected to improve from 2.4x in FY2014 to 3.1x in FY2016E as
the company has already incurred the required capex. We believe there would be
minimum capex requirement going forward as the company would be
outsourcing manufacturing, which will prove to be more profitable. In addition,
with the cash flow coming in, the company will be able to reduce its debt, thereby
easing interest expenses and improving profitability. Hence, we expect the profit
to grow at a CAGR of 32.1% over FY2014-16E to `111cr.
`718
`947
Investment Period
12 Months
Stock Info
Sector
Market Cap (` cr)
Net debt (` cr)
Beta
52 Week High / Low
Avg. Daily Volume
Face Value (`)
BSE Sensex
Textile
673
270
0.4
850 / 213
6,059
10
26,384
Nifty
Reuters Code
Bloomberg Code
7,884
SIYR.BO
SIYA IN
Shareholding Pattern (%)
Promoters
67.1
MF / Banks / Indian Fls
6.6
FII / NRIs / OCBs
4.9
Indian Public / Others
21.4
Abs.(%)
3m
1yr
3yr
Sensex
5.4
28.5
56.3
SSML
32.6
228.0
163.0
Valuation: SSML is trading at a PE of 6.1x on FY2016E earnings, which is
attractive. We reiterate our Buy rating on the stock with an upgraded target price of
`947, valuing the stock at a revised target PE of 8x FY2016E earnings.
Key financials
Y/E March (` cr)
Net Sales
% chg
Adj. Net Profit
% chg
OPM (%)
EPS (`)
P/E (x)
P/BV (x)
RoE (%)
RoCE (%)
EV/Sales (x)
EV/EBITDA (x)
FY2012
916
6.5
57
(1.4)
12.7
60.5
11.9
2.5
23.3
18.5
1.0
7.6
FY2013
1,041
13.7
55
(3.0)
10.6
58.7
12.2
2.1
18.9
15.2
0.9
8.3
FY2014
1,303
25.2
64
15.6
10.7
67.8
10.6
1.8
18.6
16.4
0.7
6.7
Source: Company, Angel Research; Note: CMP as of October 13, 2014
Please refer to important disclosures at the end of this report
FY2015E
1,536
17.8
80
25.9
10.9
85.4
8.4
1.5
19.8
17.5
0.6
5.2
FY2016E
1,810
17.9
111
38.6
11.4
118.4
6.1
1.3
22.7
20.8
0.5
4.0
Bhavin Patadia
022-39357800 Ext: 6862
bhavin.patadia@angelbroking.com
1
Siyaram Silk Mills | Company Update
1QFY2015 performance
Y/E March (` cr)
Net Sales
Operating profit
1QFY15
1QFY14
% chg. (yoy)
4QFY14
% chg. (qoq)
302
251
20.3
406
(25.6)
32
26
24.4
43
(25.5)
OPM (%)
10.6
10.3
35bp
10.6
1bp
Adj. PAT
12
11
7.9
20
(42.6)
Source: Company, Angel Research
SSML reported a decent set of numbers for 1QFY2015. The company's top-line for
the quarter grew by 20.3% yoy to `302cr, led by an improving product mix and
aggressive marketing. The EBIDTA margin for the quarter improved by 35bp yoy
to10.6%. The depreciation cost increased by 60.1% yoy (adhering to the new
Companies Act 2013) and came in at `10.8cr. As a result, the net profit grew by a
modest 7.9% yoy to `12cr.
Exhibit 1: 1QFY2015 performance
Y/E March (` cr)
1QFY15
1QFY14
% chg. (yoy)
4QFY14
% chg. (qoq)
FY2014
FY2013
% chg
Net Sales
302
251
20.3
406
(25.6)
1,303
1,041
25.2
Net raw material
147
124
18.8
222
(33.9)
671
532
26.2
(% of Sales)
48.6
49.3
(63)
54.8
(614)
51.5
51.1
Employee Cost
29
26
12.1
29
(0.3)
108
89
(% of Sales)
9.6
10.3
(70)
7.1
242
8.3
8.6
Other Expenses
21.0
94
76
24.2
111
(15.5)
384
310
(% of Sales)
31.2
30.2
98
27.5
371
29.5
29.7
Total Expenditure
270
225
19.8
363
(25.6)
1,163
931
24.9
Operating Profit
OPM (%)
Interest
24.0
32
26
24.4
43
(25.5)
140
110
27
10.6
10.3
35
10.6
1
10.7
10.6
16
8
7
20.7
8
0.5
29
25
14.2
Depreciation
11
7
60.1
8
41.8
29
22
33.6
Other Income
4
4
-
4
(9.2)
16
19
(14.8)
5.5
32
(46.1)
98
82
19.8
7.5
7.9
PBT
17
16
(% of Sales)
5.6
6.4
Tax
(% of PBT)
Reported PAT
Extraordinary Expense/(Inc.)
5
5
32.1
33.6
12
11
-
-
Adjusted PAT
12
11
PATM (%)
3.8
4.3
7.8
0.7
11
(52.2)
34
27
35.1
32.7
(42.6)
64
55
-
-
(42.6)
64
55
4.9
5.3
36.2
7.9
20
7.9
20
5.0
28.6
15.6
15.6
Source: Company, Angel Research
October 13, 2014
2
Siyaram Silk Mills | Company Update
Investment arguments
Leadership in blended fabric & widening of portfolio to drive growth
Revenue to growth at a CAGR of 17.8%
over FY2014-16 to `1,810cr
SSML is the largest manufacturer of blended high fashion suitings, shirtings and
apparels. Increasing demand for polyester viscose fabric, shifting preference of
consumers from unbranded fabrics to branded blended fabrics on the back of
improved standard of living, and rising disposable incomes in tier II and tier III
cities would likely aid the company’s growth prospects. A portfolio of strong and
value-for-money brands like Siyaram’s, J Hampstead and Mistair in the fabric
segment, place SSML in a sweet spot. The company has launched two new
premium cotton brands – Zenesis and Moretti, and has penetrated further into new
growth areas like cotton shirting, linen fabrics etc.
SSML has been able to differentiate itself from unorganized and organized
competitors in a highly fragmented market. With a strong market position,
pan-India presence and high brand recognition, along with the increasing
diversification in its revenue profile, we expect the company’s revenue to grow at a
CAGR of 17.8% over FY2014-16E to `1,810cr.
Strengthening financials make the company a lucrative investment
In the last few years, SSML has enhanced its fabrics and garments manufacturing
capacity to meet growing demand for its branded products with funding coming in
through internal accruals and loans. Additionally, with improving operational
efficiency on the back of gradually increasing contribution of outsourced
manufacturing from 40% in FY2014 to 60% by FY2016E and consolidation of
expenses, the asset turnover (Gross Block) is expected to improve from 2.4x in
FY2014 to 3.1x in FY2016E.
Exhibit 2: Asset turnover to improve
3.1
3.0
(`)
2.7
FY2016E
FY2014
2.0
FY2015E
2.3
FY2013
2.4
2.3
FY2012
2.5
Source: Company, Angel Research
October 13, 2014
3
Siyaram Silk Mills | Company Update
Angel ROIC estimated at 22.3% in
FY2016E compared to 16.6% in FY2014
In addition, with the cash flow coming in, the debt is expected to reduce to `201cr
in FY2016E from `275cr in FY2014, thereby easing interest expenses. All these
factors will lead to improvement in return ratios to the earlier levels (Angel ROIC
estimated at 22.3% in FY2016E from 16.6% in FY2014), making the company a
lucrative investment candidate. Moreover, following its trend, we expect the
company to increase dividend pay out to `12/share in FY2016E from `8/share
issued in FY2014.
Exhibit 3: Return ratios to improve to earlier levels
24.0
23.3
22.7
Exhibit 4: Expect dividend payout to increase
14.0
12.0
12.0
7.0
8.0
18.5
6.0
8.0
Source: Company, Angel Research
FY2016E
FY2016E
ROE
FY2015E
FY2015E
FY2014
FY2014
Angel ROIC (Pre-tax)
FY2011
FY2013
5.0
4.0
16.6
15.7
FY2012
7.5
6.0
19.3
15.0
7.5
FY2013
18.6
FY2009
18.0
10.0
10.0
FY2010
(%)
18.9
22.3
(`)
19.8
FY2012
21.0
Source: Company, Angel Research
Rigorous advertisement and retail expansion to push demand
SSML spent ~`36cr in FY2014 on
advertisement
SSML has built a strong brand presence in the country through continuous
advertisement and brand-building efforts. Its emphasis on latest fabrics, innovative
and latest designs and affordable pricing points give it an edge over competition.
Every brand holds a distinct position in the consumers’ minds which has helped the
company in creating a niche for itself in a highly competitive industry.
Additionally, the company has been spending rigorously on advertising for the
recognition of its brands. The company has signed up celebrities like M S Dhoni
(Siyaram’s, MSD), Neil Nitin Mukesh (Mistair), Saif Ali Khan (Oxemberg) and
Hrithik Roshan (J. Hampstead) as brand ambassadors for its products. In FY2014,
the company spent ~`36cr on advertising.
Moreover, SSML has one of the largest distribution networks in the country with
over 1,600 dealers and 500 agents supplying to more than 40,000 outlets across
India. This enables the company to launch new products with a high success ratio
and low marketing cost, giving it an edge over competition. In order to expand its
retail footprint, the company continues to add stores through the franchise model
(franchisees invest ~`25lakh on an average for interior works and inventory with
minimum space requirement being 800 sq ft). It plans to increase the number of
stores through franchisees to 500 by FY2017E.
October 13, 2014
4
Siyaram Silk Mills | Company Update
Venturing into women’s segment – a long term driver
Company has roped in celebrities like
Parineeti Chopra and Karishma Kapoor
to endorse Siya
October 13, 2014
The company has ventured into the salwar kameez and ethnic women’s wear
segment with its brand - Siya. The Siya brand comprises of semi-stitched cotton,
polyester and embroidered designer fabrics, with prices ranging from `700 to
`7,000. In FY2014, the company generated a revenue of `30cr and it plans to
grow it to `500cr in the coming four to five years as there are hardly any
national-level mass brands in the category. SSML has roped in celebrities Parineeti
Chopra and Karishma Kapoor to endorse the brand through photo shoots. As per
industry reports (Technopak study in 2011), salwar kameez and ethnic women’s
wear is a `20,690cr category, growing at a CAGR of 10%, which gives immense
opportunity to the company.
5
Siyaram Silk Mills | Company Update
Financials
In FY2014, the company showed a promising revenue growth of 25.2% yoy to
`1,303cr, aided by robust volume growth and some price hike. The garment
segment grew by 48.6% for the year (30.8% volume and 13.6% value) to `213cr
followed by 19.7% growth in the fabric segment (11.4% volume and 7.5% value
growth) to `995cr. Going ahead, the growth in these segments is expected to
moderate, but still will be relatively higher on account of rigorous advertisement
and value-for-money positioning. Moreover, we believe that factors like
1) leadership position in blended fabric manufacturing, 2) increasing demand for
polyester viscose fabric, 3) shift in demand from unbranded fabrics to branded
ones in tier II and tier III cities, and 4) focus on improving product mix towards
premium and high margin products, will continue to drive revenue growth for the
company. On back of these driving factors, we expect the revenue to grow at a
CAGR of 17.8% over FY2014-16E to `1,810cr in FY2016E.
Exhibit 5: Revenue growth momentum to continue
30
25.2
1,600
(` cr)
3.8
10.5
3.1
12.7
3.7
13.7
83.5
81.8
79.8
80
3.8
3.5
16.3
18.8
20.0
76.4
77.5
76.5
3.5
25
1,400
1,200
1,000
20
17.9
17.8
15
13.7
800
600
1,810
1,536
1,303
916
860
6.5
1,041
10
400
200
100
35
30.3
0
FY2012
FY2013
Revenue (LHS)
Source: Company, Angel Research
FY2014 FY2015E FY2016E
Revenue growth (RHS)
40
20
5
0
FY2011
60
(%)
1,800
(%)
2,000
Exhibit 6: Mix to improve in favour of garments
0
FY2011
FY2012
FY2013E
FY2014E
FY2015E
Finish Cloth
Readymade Garments
Yarn
FY2016E
Others
Source: Company, Angel Research
The increasing share of readymade garments segment in SSML’s product mix,
which has higher margins, will contribute towards an improvement in the overall
EBITDA margins. Polyester viscose, which is a crude derivative, forms ~85% of the
company’s raw material. With declining crude oil prices, the raw material cost is
expected to decline gradually. Thus, we expect improvement in the EBIDTA margin
by FY2016E to 11.4%. We will continue to see higher depreciation expenses going
ahead, due to new provisioning requirements in the Companies Act. With cash
flow coming in and capex requirement expected to be minimal, we expect the
company to start repaying its debt. We estimate the debt to stand at `201cr in
FY2016E from `275cr in FY2014, thereby easing the interest expense for the
company. Consequently we expect the profit to grow substantially at a CAGR of
32.1% over FY2014-16E to `111cr in FY2016E.
October 13, 2014
6
Siyaram Silk Mills | Company Update
Exhibit 8: PAT margin to improve on lower interest cost
250
15.0
12.7
10.6
150
10.7
11.4
100
9.0
50
7.0
6.1
6.2
80
11.0
10.9
6.7
100
13.0
(%)
(` cr)
200
120
(` cr)
12.8
6
5.2
5.3
4.9
60
7
5
(%)
Exhibit 7: EBIDTA margins to improve
40
110
117
110
140
168
206
FY2011
FY2012
FY2013
FY2014
FY2015E
FY2016E
0
4
20
5.0
EBITDA (LHS)
58
57
55
FY2011
FY2012
FY2013
PAT (LHS)
80
111
3
EBITDA Margin (RHS)
Source: Company, Angel Research
64
0
FY2014
FY2015E
PATM (RHS)
FY2016E
Source: Company, Angel Research
Exhibit 9: Relative valuation
Mcap
Sales
OPM
PAT
EPS
RoE
P/E
P/BV
EV/Sales
EV/
(` cr)
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
EBITDA (x)
FY2015E
673
1,536
10.9
80
85.4
19.8
8.4
1.5
0.6
5.2
FY2016E
673
1,810
11.4
111
118.4
22.7
6.1
1.3
0.5
4.0
FY2015E
7,285
8,195
13.8
433
16.7
16.0
17.7
2.6
1.3
9.3
FY2016E
7,285
9,659
14.0
536
20.7
17.3
14.3
2.3
1.1
7.7
FY2015E
2,824
5,149
10.7
154
25.7
9.7
16.8
1.6
0.8
7.5
FY2016E
2,824
5,756
11.0
209
35.2
11.8
12.3
1.5
0.7
6.5
Company
Year end
SSML
Arvind Ltd.*
Raymond*
Source: Company, Angel Research; * Bloomberg estimates
SSML is trading at a much lower valuation than its peers despite its higher ROE
and lower EV/EBITDA, which makes the company a strong investment candidate.
October 13, 2014
7
Siyaram Silk Mills | Company Update
Outlook and valuation: We believe that with market leadership in blended fabrics,
strong brand building, wide distribution channel, strong presence in tier II and tier
III cities and emphasis on latest designs and affordable pricing points, SSML will be
able to post a revenue CAGR of 17.8% over FY2014-16E to `1,810cr with an
EBITDA margin of 11.4%. We expect the profit to grow at a CAGR of 32.1% over
FY2014-16E to `111cr. On account of the improved brand acceptance and strong
profit growth, we reiterate our Buy rating on the stock with an upgraded target
price of `947, valuing the stock at a revised target PE of 8x FY2016E earnings.
Exhibit 10: One-year forward P/E band
700
600
500
(`)
400
300
200
100
Price (`)
2x
4x
6x
Sep-14
Mar-14
Sep-13
Mar-13
Sep-12
Mar-12
Sep-11
Mar-11
Sep-10
Mar-10
Sep-09
0
8x
Source: Company, Angel Research
Concerns
Competition from the unorganized sector: SSML, being in a sector that’s
highly unorganized, faces intense competition from unorganized players as they
usually sell their products at a much cheaper rate compared to it. However, due to
strong branding efforts, huge distribution network and affordable price points, the
company is easily able to differentiate its products from those of competitors.
Fluctuation in raw-material prices: SSML operates in a highly price-sensitive
market. Any fluctuation in raw-material prices can lead to margin compression, as
the company may not be able to pass on the entire increase to the end-user. Also,
polyviscose is a crude derivative, so any wide fluctuation in crude prices may
further affect the EBIDTA margin of the company.
October 13, 2014
8
Siyaram Silk Mills | Company Update
Company background
SSML is the largest manufacturer of blended fabrics in India. The company enjoys
a strong brand presence across the country, with brands such as Siyaram’s,
Mistair, MSD, J. Hampstead and Oxemberg in its kitty. The company has also
recently launched three premium brands - Royal Linen (linen fabrics for men and
women), Moretti (cotton shirting) and Zenesis (cotton suitings). SSML has built a
strong brand presence in the country through continuous advertisement and
brand-building efforts over the past 30 years. The company has created a niche
for itself in a highly competitive industry.
It has a wide distribution network comprising 1,600 dealers and 500 agents
supplying to more than 40,000 outlets across India and has ~160 franchise stores
with plans to increase the network to 500 stores by FY2017E. The company
operates four plants – one at Tarapur near Mumbai for weaving and yarn dyeing,
two at Daman for garments and one at Silvassa for weaving.
October 13, 2014
9
Siyaram Silk Mills | Company Update
Profit and loss statement
Y/E Mar. (` cr)
Net Sales
Other operating income
Total operating income
% chg
Net Raw Materials
% chg
Power and Fuel
FY2013
FY2014
FY2015E
FY2016E
916
1,041
1,303
1,536
1,810
-
-
-
-
-
916
1,041
1,303
1,536
1,810
6.5
13.7
25.2
17.8
17.9
460
532
671
768
894
5.7
15.7
26.2
14.3
16.4
16
19
27
31
36
18.4
21.5
37.9
14.3
17.9
63
89
108
124
147
% chg
34.5
41.8
21.0
15.4
17.9
Other
260
290
357
445
528
% chg
Personnel
% chg
2.3
11.6
23.1
24.7
18.5
Total Expenditure
799
931
1,163
1,368
1,604
EBITDA
117
110
140
168
206
% chg
6.0
(5.4)
27.1
19.8
22.8
12.7
10.6
10.7
10.9
11.4
Depreciation
22
22
29
44
45
EBIT
94
88
111
124
161
% chg
5.9
(6.2)
25.5
11.9
29.8
10.3
8.5
8.5
8.1
8.9
24
25
29
25
21
(% of Net Sales)
(% of Net Sales)
Interest & other Charges
Other Income
11
19
16
20
25
(% of Net Sales)
1.2
1.8
1.2
1.3
1.4
Recurring PBT
70
63
82
99
140
(5.1)
(9.9)
30.0
21.0
40.9
81
82
98
119
166
% chg
PBT (reported)
Tax
(% of PBT)
PAT (reported)
Extraordinary Expense/(Inc.)
24
27
34
39
55
30.1
32.7
35.1
33.0
33.0
57
55
64
80
111
-
-
-
-
-
57
55
64
80
111
(1.4)
(3.0)
15.6
25.9
38.6
6.2
5.3
4.9
5.2
6.1
Basic EPS (`)
60.5
58.7
67.8
85.4
118.4
Fully Diluted EPS (`)
60.5
58.7
67.8
85.4
118.4
% chg
(1.4)
(3.0)
15.6
25.9
38.6
7
7
8
9
11
50
48
56
71
100
ADJ. PAT
% chg
(% of Net Sales)
Dividend
Retained earnings
October 13, 2014
FY2012
10
Siyaram Silk Mills | Company Update
Balance sheet
Y/E Mar. (` cr)
FY2012
FY2013
FY2014
FY2015E
FY2016E
SOURCES OF FUNDS
Equity Share Capital
9
9
9
9
9
Reserves& Surplus
258
305
360
429
527
Shareholders’ Funds
267
314
370
439
536
Total Loans
215
241
275
237
201
23
23
26
28
31
Other Long Term Liabilities
Long Term Provisions
3
5
6
6
7
16
19
22
19
16
525
602
698
729
791
Gross Block
403
499
570
584
601
Less: Acc. Depreciation
173
194
220
264
309
Net Block
230
305
349
320
292
15
16
3
5
5
-
-
-
-
-
3
0
0
0
0
20
8
13
15
18
Deferred Tax (Net)
Total liabilities
APPLICATION OF FUNDS
Capital Work-in-Progress
Goodwill
Investments
Long Term Loans and advances
Other Non-current asset
Current Assets
Cash
Loans & Advances
-
-
-
-
458
530
613
739
2
3
6
33
47
78
33
39
46
63
Inventory
188
222
225
263
310
Debtors
190
200
260
271
320
-
0
0
-
-
Current liabilities
201
186
198
225
264
Net Current Assets
257
273
333
388
476
-
-
-
-
-
525
602
698
729
791
Other current assets
Misc. Exp. not written off
Total Assets
October 13, 2014
458
11
Siyaram Silk Mills | Company Update
Cash flow statement
Y/E Mar. (` cr)
Profit before tax
Depreciation
FY2013
FY2014
FY2015E
FY2016E
81
82
98
119
166
22
22
29
44
45
Change in Working Capital
(26)
(15)
(57)
(28)
(74)
Direct taxes paid
(24)
(27)
(34)
(39)
(55)
Others
8
6
30
(20)
(25)
61
68
66
76
57
(Inc.)/Dec. in Fixed Assets
(30)
(97)
(58)
(16)
(18)
(Inc.)/Dec. in Investments
15
3
(0)
(0)
(0)
1
12
(5)
(3)
(3)
Cash Flow from Operations
(Incr)/Decr In LT loans & adv.
Others
Cash Flow from Investing
Issue of Equity
5
10
2
20
25
(8)
(73)
(61)
2
5
-
-
-
-
-
(30)
26
34
(39)
(36)
(8)
(8)
(9)
(11)
(13)
Others
(16)
(12)
(28)
0
0
Cash Flow from Financing
(54)
6
(3)
(50)
(49)
Inc./(Dec.) in loans
Dividend Paid (Incl. Tax)
Inc./(Dec.) in Cash
October 13, 2014
FY2012
(1)
1
2
28
13
Opening Cash balances
3
2
3
6
33
Closing Cash balances
2
3
6
33
47
12
Siyaram Silk Mills | Company Update
Key ratios
Y/E Mar.
FY2012
FY2013
FY2014
FY2015E
FY2016E
Valuation Ratio (x)
P/E (on FDEPS)
11.9
12.2
10.6
8.4
6.1
P/CEPS
8.5
8.8
7.3
5.4
4.3
P/BV
2.5
2.1
1.8
1.5
1.3
EV/Net sales
1.0
0.9
0.7
0.6
0.5
EV/EBITDA
7.6
8.3
6.7
5.2
4.0
EV / Total Assets
1.7
1.6
1.4
1.2
1.1
EPS (Basic)
60.5
58.7
67.8
85.4
118.4
EPS (fully diluted)
60.5
58.7
67.8
85.4
118.4
Cash EPS
84.3
82.0
99.0
132.1
166.5
Per Share Data (`)
DPS
Book Value
7.5
7.5
8.0
10.0
12.0
285.0
335.2
394.5
468.2
572.5
10.3
8.5
8.5
8.1
8.9
0.7
0.7
0.6
0.7
0.7
DuPont Analysis
EBIT margin
Tax retention ratio
Asset turnover (x)
ROIC (Post-tax)
Cost of Debt (Post Tax)
Leverage (x)
1.9
1.8
2.0
2.3
2.5
13.5
10.6
10.8
12.4
14.9
7.3
7.4
7.2
6.4
6.4
0.8
0.8
0.7
0.5
0.3
18.3
12.9
13.4
15.1
17.4
ROCE (Pre-tax)
18.5
15.2
16.4
17.5
20.8
Angel ROIC (Pre-tax)
19.3
15.7
16.6
18.5
22.3
ROE
23.3
18.9
18.6
19.8
22.7
Asset TO (Gross Block)
2.3
2.3
2.4
2.7
3.1
Inventory / Net sales (days)
67
72
63
58
58
Receivables (days)
77
68
64
64
64
Operating ROE
Returns (%)
Turnover ratios (x)
Payables (days)
84
76
60
60
60
102
94
92
84
87
Net debt to equity
0.8
0.8
0.7
0.5
0.3
Net debt to EBITDA
1.8
2.2
1.9
1.2
0.7
Int. Coverage (EBIT/ Int.)
3.9
3.5
3.9
5.0
7.7
WC cycle (ex-cash) (days)
Solvency ratios (x)
October 13, 2014
13
Siyaram Silk Mills | Company Update
Research Team Tel: 022 - 39357800
E-mail: research@angelbroking.com
Website: www.angelbroking.com
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Disclosure of Interest Statement
Siyaram Silk Mills
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):
October 13, 2014
Buy (> 15%)
Reduce (-5% to -15%)
Accumulate (5% to 15%)
Sell (< -15%)
Neutral (-5 to 5%)
14