Mehabe score: 2 G Factor: 4 Piotski Score: 4 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 4.
Description
Apex Frozen Foods is an integrated producer and exporter of shelf stable quality aquaculture products.
Apex Frozen Foods Ltd, one of the leading producers and exporters of processed shrimp began its operations in 1995 # The company’s operations comprise hatchery, farming, pre-processing, processing, and exporting of shelf-stable quality aquaculture products like shrimp.
Main Points
Product
The company produces variants of processed White shrimp (L. Vannamei) and Black Tiger shrimp (P. Monodon). These are mostly sold under the brands owned by the customers and through its own brands namely Bay Fresh, Bay Harvest, and Bay Premium. #Site:APEX
Market Cap:
Rs 849 cr
Price:
271.0
Trading pe:
18.8x
Book-value:
137/share
Div yield:
0.74 %
Earning yield:
7.19%
Face-value:
10.0/share
52week high:
328.80
52week low:
199.95
Technical Analysis
Stock trades at 271.0, above its 50dma 257.26. It also trades above its 200dma 257.42. The stock remains bullish on techicals
The 52 week high is at 328.80 and the 52week low is at 199.95
Price Chart
P/E Chart
Sales and Margin
Strengths
– has delivered good profit growth of 27.05% CAGR over last 5 years
Weakness
– The company has delivered a poor sales growth of 6.65% over past five years.
– might be capitalizing the interest cost
Competition
– The industry trades at a mean P/E of 32.0x. BKV Industries trades at the industry’s max P/E of 103.71x. APEX trades at a P/E of 18.8x
– Industry’s mean G-Factor is 2.7 while the mean Piotski score is 6.0. APEX has a G-Factor of 4 and Piotski scoreof 4.
– Average 1 month return for industry is 18.5%. The max 1- month return was given by BKV Industries: a return of 47.99 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 181.91 cr compared to Rs 140.66 cr for period ended Mar 2020, a rise of 29.3%
Operating Profits reported at Rs 18.99 cr for period ended Mar 2021 vis-vis 13.34 for period ended Mar 2020 .
Operating Margins expanded 95.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 2.68 compared to Rs 0.72 for previous quarter ended Dec 2020 and Rs 2.93 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 818.0 cr for period ended Mar 2021 vis-vis sales of Rs 827.0 cr for the period ended Mar 2020, a fall of 1.1%. The 3 year sales cagr stood at -6.4%.
Net Profit reported at Rs 44.0 cr for period ended Mar 2021 vis-vis sales of Rs 61.0 cr for the period ended Mar 2020, falling 38.6%.
Company reported a poor Net Profit CAGR of -17.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 16.0% compared to 22.0% over the last 3 Years. – The stock has given a return of 3% on a 1 Year basis vis-vis a return of -13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -9% vis-vis a compounded sales growth of 6% over the last 3 Years. – The compounded profit growth on a TTM basis is -25% vis-vis a compounded profit growth of 34% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.09% vis-vis 0.19% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 21.37% vis-vis 16.27% for Dec 2020
Conclusion
– has delivered good profit growth of 27.05% CAGR over last 5 years – The company has delivered a poor sales growth of 6.65% over past five years.
– might be capitalizing the interest cost
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 257.26 and is trading at 271.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
