Mehabe score: 7 G Factor: 3 Piotski Score: 7 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 3 and Piotski score of 7.
Description
Apcotex Industries is engaged in the Business of Manufacture of synthetic rubber and Manufacture of other products or preparations of kind used in the textile, paper, leather and like industries.Site:APCOTEXINDMain Symbol:APCOTEXIND
Stock trades at 347.0, above its 50dma 308.35. It also trades above its 200dma 234.66. The stock remains bullish on techicals
The 52 week high is at 385.00 and the 52week low is at 107.55
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 56.00%
Weakness
– has a low return on equity of 13.26% for last 3 years.
Competition
– The industry trades at a mean P/E of 21.3x. Elgi Rubber Co trades at the industry’s max P/E of 299.87x. APCOTEXIND trades at a P/E of 40.8x
– Industry’s mean G-Factor is 4.3 while the mean Piotski score is 7.0. APCOTEXIND has a G-Factor of 3 and Piotski scoreof 7.
– Average 1 month return for industry is 7.9%. The max 1- month return was given by Pix Transmission: a return of 35.85 %
Quarterly Results
Sales for period ended Jun 2021 is Rs 185.0 cr compared to Rs 60.0 cr for period ended Jun 2020, a rise of 208.3%
Company reported operating profit of Rs 29.0 cr for period ended Jun 2021, operating profit margin at 15.7 %.
Operating profit was negative for the same period last year thus company has improved its margins this year
The EPS for Jun 2021 was Rs 4.22 compared to Rs 4.36 for previous quarter ended Mar 2021 and Rs -1.29 for Jun 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 666.0 cr for period ended TTM vis-vis sales of Rs 541.0 cr for the period ended Mar 2021, a healthy growth of 18.8%. The 3 year sales cagr stood at 2.1%.
Operating margins expanded to 15.0% for period ended TTM vis-vis 13.0% for period ended Mar 2021, expansion of 200.0 bps.
Net Profit reported at Rs 73.0 cr for period ended TTM vis-vis sales of Rs 44.0 cr for the period ended Mar 2021, rising 39.7%.
Company recorded a healthy Net Profit CAGR of 15.8% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 75.0 cr for period ended Mar 2021 vis-vis Rs 36.0 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 178% on a 1 Year basis vis-vis a return of 16% over the last 3 Years. – The compounded sales growth on a TTM bassis is 9% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is 175% vis-vis a compounded profit growth of 3% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Jun 2021 fii holding stood at 1.35% vis-vis 0.0% for Mar 2021 – Public shareholding has remained largely constant. The Jun 2021 public holding stood at 39.96% vis-vis 40.97% for Mar 2021
Conclusion
– has reduced debt.
– is almost debt free.
– is expected to give good quarter
– has been maintaining a healthy dividend payout of 56.00% – has a low return on equity of 13.26% for last 3 years.
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 308.35 and is trading at 347.0 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
