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523694: Capacity Expansion At Valia Facility Will Drive Sales Momentum

Global Export Improvements And Capacity Expansions Will Define Future Success

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523694
AnalystConsensusTarget
Not Invested
Published 15 Feb 2025

Update shared on 25 Nov 2025

Fair value Increased 15%
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Analysts have raised their price target for Apcotex Industries from ₹490 to ₹564. They cite improved revenue growth forecasts, even though the outlook for profit margins is slightly lower.

What's in the News

  • The Board of Directors has approved a significant capital expenditure of INR 2,100 million to expand capacity at the Valia, Gujarat manufacturing facility, with phased completion expected by the first quarter of FY27 (Board Meeting).
  • Planned capacity addition includes 37,000 MTPA of Synthetic Latex and 14,600 MTPA of Nitrile Rubber and Allied Products. This will enhance overall production capabilities (Business Expansions).
  • The expansion aims to meet rising demand and boost sales across domestic and international markets (Business Expansions).
  • At the recent board meeting on November 5, 2025, directors also reviewed the audited financial results for the quarter and half year ended September 30, 2025 (Board Meeting).

Valuation Changes

  • Consensus Analyst Price Target has increased from ₹490 to ₹564, reflecting higher expectations for the company's future performance.
  • Discount Rate has decreased marginally from 13.70% to 13.51%, suggesting a slightly lower perceived risk in projections.
  • Revenue Growth forecast has risen noticeably from 10.97% to 16.28%, indicating stronger anticipated sales momentum.
  • Net Profit Margin estimate has declined from 7.54% to 6.53%, pointing to modest pressure on profitability despite growth.
  • Future P/E multiple has risen from 24.89x to 28.90x, which implies a higher valuation on expected earnings.

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Disclaimer

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