Fundamental Analysis

APCOTEX INDUSTRIES LTD.

Ticker : 523694
BUY : Rs 225.00
Target : Rs 256

Apcotex Industries Limited is engaged in the business of producing synthetic emulsion polymers. The quarterly financials show that its revenue rose by 50.2 per cent to Rs 164.6 crore in Q3FY21 from Rs 109.6 crore reported in Q3FY20. The company reported an operating profit of Rs 21.4 crore in Q3FY21 as against the operating loss of Rs 1.8 crore posted in Q3FY20. Apcotex Industries gained a net profit of Rs 16.6 crore in Q3FY21 as against a net loss of Rs 1.4 crore incurred in Q3FY20. In Q3FY21, the company achieved its highest-ever quarterly revenue as well as quarterly volume sales including exports. The company has developed a strong research & development base and is considered to be one of the leading producers of synthetic rubber and synthetic latex in India. Considering robust demand growth and operational performance, the company is expected to see a healthy volume & price growth in the upcoming quarters. Hence, BUY.