Saturday, June 13, 2020

Apcotex Industries Ltd – Richly Priced


Apcotex Industries Ltd closes   at  107.60 with  a  Gain    of   +0.50 %   on    12-June- 2020   with formation of  a  Small Green  Candle    on Daily  Price Chart.
About the Company : Apcotex is one of the leading producers of Synthetic Rubber (NBR & HSR) and Synthetic Latex (Nitrile, VP latex, XSB & Acrylic latex) in India. The company has one of the broadest range of Emulsion Polymers available in the market today. The various grades of Synthetic Rubber find application in products such as Automotive Components, Hoses, Gaskets, Rice Dehusking Rollers, Printing and Industrial Rollers, Friction Materials, Belting and Footwear. Apcotexs range of Latexes are used for Paper / Paper Board Coating, Carpet Backing, Tyre Cord Dipping, Construction etc.
The company is has  post  Net Sales  of 496.00 Cr & Net Profit   of 17.00 Cr in FY2020 and  and  expected to Post Net Sales of 521.00 Cr & Net Profit of 22.00 Cr in FY2021 & Net Sales of 599.00  Cr & Net Profit of 31.00 Cr in FY2022.
Valuations  : The Company is now Trading at X 1.90   of its Value. We have valued the company with its full  Financial  year 2020 earnings  ( PAT ), which is now almost ~90% Premium  to its value & X1.47  of its FY2021 earning with a Premium  of ~47%  and X 1.04  of its FY2022  earnings with a Premium  of ~0.04%  .Margin of Safety (1Yr Bond Yield: Value>1 ) is now 0.8 , which indicates ~20% fall makes it Attractive for Long Term Holding. Its Fair price with FY-2021 earnings considerations is 73.50
Disclaimer : We are / may going to take exposure shortly.
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