Indo Count Industries: PAT growth of 22% & revenue growth of 18% for FY24 at a PE of 20
Doubling revenue by FY27 to reach Rs 6,000 cr on a base of FY23 revenue. FY24-27 revenue CAGR of 19%. ICIL is guiding for 14-19% volume growth in FY25 with 16-18% EBITDA margin
1. The Largest Global Home Textile Bed Linen Company
indocount.com | NSE: ICIL
Comprehensive product portfolio in the premium segment that comprises of bed sheets, fashion bedding, utility bedding and institutional bedding
Indo Count is recognized among the top three Global bed sheet suppliers in the US
Going forward the company is focused on expanding in value added segments such as Fashion Bedding, Utility Bedding and Institutional Bedding
2. FY20-24: PAT CAGR of 47% & Revenue CAGR of 14%
3. Weak FY23: PAT down 23% & Revenue up 4%
4. Strong 9M-24: PAT up 35% & Revenue up 12% YoY
5. Weak Q4-24: PAT down 3% & Revenue up 35% YoY
6. Strong FY24: PAT up 22% & Revenue up 18% YoY
7. Business metrics: Strong return ratios
8. Strong outlook: 20-34% volume growth in FY24
i. FY25: 14-19% volume growth
ii. FY24: EBITDA Margin Guidance of 16-18%
Q4 EBITDA margin of 15% was on account of onetime promotional activities, which increased the other expenses and therefore, impacted EBITDA margin by around 2%. This is one-off scenario was in this particular quarter. We expect the benefits of this to play in the coming quarters and are confident to maintain the EBITDA in our guided band of 16% to 18%.
iii. FY24-27: Revenue CAGR of 19%
ICIL is guiding to reach a revenue of Rs 6,000 cr in FY27 from Rs 3,601 cr in FY24 implying FY24-27 revenue CAGR of 19%
On doubling of revenue from Rs 3,000 cr of FY23:
But definitely, our endeavour is to see that we do this revenue growth to doubling it by, say, 2027, like FY '27, we should safely take it.
9. PAT growth of 22% & Revenue growth of 18% in FY24 at a PE of 20
10. So Wait and Watch
If I hold the stock then one may continue holding on to ICIL
Based on FY24 performance by ICIL, one can take confidence in its ability to deliver as per FY25 guidance. .
In FY '24, we have achieved our highest ever quarterly and yearly revenue of INR1,093 crores and INR3,601 crores, respectively. Additionally, we have recorded our highest ever annual EBITDA in FY '24, amounting to INR603 crores.
We have delivered on our volume and margin as per guidance.
The guidance to deliver Rs 6,000 cr revenue by FY27 provides a reason to continue in the business which is expected to grow its top-line at FY24-27 revenue CAGR of 19%
11. Join the ride
If I am looking to enter ICIL then
ICIL has delivered PAT growth of 22% and revenue growth of 18% in FY24 at a PE of 20 which makes the valuations fully priced in the short term.
With a longer term revenue CAGR of 19% to reach Rs 6,000 cr revenue by FY27 at a PE of 20 makes the valuations reasonable over the longer term.
Previous coverage of ICIL
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