Buy Apcotex Industries, target price Rs 722: Anand Rathi

Anand Rathi has buy call on Apcotex Industries with a target price of Rs 722. The current market price of Apcotex Industries is Rs 643.9. Time period given by analyst is one year when Apcotex Industries Ltd. price can reach defined target.

Apcotex Industries Ltd., incorporated in the year 1986, is a Small Cap company (having a market cap of Rs 3343.74 Crore) operating in Rubber sector.

Apcotex Industries Ltd. key Products/Revenue Segments include Synthetic Rubber Lattices, Export Incentives, Scrap and Other Operating Revenue for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Standalone Total Income of Rs 279.02 Crore, up 10.28 % from last quarter Total Income of Rs 253.02 Crore and up 47.66 % from last year same quarter Total Income of Rs 188.95 Crore. Company reported net profit after tax of Rs 30.90 Crore in latest quarter.

Investment Rationale
Apcotex's strong technology & management, extensive experience , and high-profile clientele have aided it in building major entry barriers for potential competitors and new entrants. As a result, it has a significant market share in each of the industrial verticals in which it operates. Moreover, upcoming and ongoing new capacity additions, growing export demand for NBR related products (Nitrile & XNBR latex etc.) and improving domestic demand in underlying industries like paper, carpets, construction etc, is expected to drive further growth for the company. THe brokerage expects Apcotex’s Revenue/EBITDA/PAT to grow at a CAGR of 18%/21%/16% respectively by FY24 with margins being relatively stable. It initiates coverage on Apcotex Industries Limited (APCOTEXIND)with a BUY rating and a target price of ₹772 per share.

Promoter/FII Holdings
Promoters held 58.15 per cent stake in the company as of 31-Mar-2022, while FIIs owned 0.91 per cent, DIIs 0.08 per cent.