Apcotex Industries (BSE:523694) - Share price, News & Analysis

Q: What is the Fair Price of 523694 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

523694 (₹545.45) is trading above our estimate of [[fair value]] (₹130.94)

523694 fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	5/6
Past Performance	5/6
Financial Health	5/6
Dividends	4/6

523694 Stock Overview

Apcotex Industries Limited produces and sells synthetic emulsion polymers in India.

Rewards

Earnings are forecast to grow 23.84% per year

Earnings grew by 52% over the past year

Risk Analysis

Dividend of 1.1% is not well covered by earnings

Apcotex Industries Competitors

Thirumalai Chemicals

BSE:500412

₹23.4b

I G Petrochemicals

BSE:500199

₹19.2b

NOCIL

BSE:500730

₹44.4b

Panama Petrochem

BSE:524820

₹18.6b

Price History & Performance

Summary of all time highs, changes and price drops for Apcotex Industries
Historical stock prices
Current Share Price	₹545.45
52 Week High	₹678.00
52 Week Low	₹293.95
Beta	0.48
1 Month Change	1.89%
3 Month Change	0.67%
1 Year Change	58.51%
3 Year Change	158.81%
5 Year Change	239.63%
Change since IPO	27,871.80%

Shareholder Returns

	523694	IN Chemicals	IN Market
7D	2.7%	0.5%	1.3%
1Y	58.5%	10.0%	8.1%

Return vs Industry: 523694 exceeded the Indian Chemicals industry which returned 10% over the past year.

Return vs Market: 523694 exceeded the Indian Market which returned 8.2% over the past year.

Price Volatility

Is 523694's price volatile compared to industry and market?
523694 volatility
523694 Average Weekly Movement	7.3%
Chemicals Industry Average Movement	6.4%
Market Average Movement	6.4%
10% most volatile stocks in IN Market	9.0%
10% least volatile stocks in IN Market	4.1%

Stable Share Price: 523694 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 523694's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1980	483	Abhiraj Choksey	https://www.apcotex.com

Apcotex Industries Limited produces and sells synthetic emulsion polymers in India. It offers synthetic latexes, such as carboxylated styrene butadiene, styrene acrylic, vinyl pyridine, and nitrile latexes; and synthetic rubber, including nitrile, NBR polyblend and powder, and high styrene rubber products. The company’s synthetic latexes are used in applications, such as tire cord dipping, paper and paperboard coating, carpet backing, concrete modification/water proofing, non-wovens, textile finishing, paints, gloves, etc.; and synthetic rubber for use in various applications comprising footwear, automotive components, rice rolls, molded items, V-belts, conveyor belts, hoses, etc. It also exports its products.

Apcotex Industries Fundamentals Summary

How do Apcotex Industries's earnings and revenue compare to its market cap?
523694 fundamental statistics
Market Cap	₹28.28b
Earnings (TTM)	₹1.10b
Revenue (TTM)	₹10.78b

25.6x

P/E Ratio

2.6x

P/S Ratio

Is 523694 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
523694 income statement (TTM)
Revenue	₹10.78b
Cost of Revenue	₹7.25b
Gross Profit	₹3.53b
Other Expenses	₹2.43b
Earnings	₹1.10b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	21.31
Gross Margin	32.77%
Net Profit Margin	10.25%
Debt/Equity Ratio	12.7%

How did 523694 perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

23%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is 523694 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 523694?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 523694. This is calculated by dividing 523694's market cap by their current preferred multiple.
What is 523694's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹28.28b

523694 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.7x
Enterprise Value/EBITDA	18x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does 523694's PE Ratio compare to its peers?

523694 PE Ratio vs Peers

The above table shows the PE ratio for 523694 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.4x
500412 Thirumalai Chemicals	8.5x	n/a	₹23.4b
500199 I G Petrochemicals	6.5x	n/a	₹19.2b
500730 NOCIL	22.8x	19.5%	₹44.4b
524820 Panama Petrochem	7.8x	n/a	₹18.6b
523694 Apcotex Industries	25.6x	23.8%	₹28.3b

Price-To-Earnings vs Peers: 523694 is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the peer average (11.4x).

Price to Earnings Ratio vs Industry

How does 523694's PE Ratio compare vs other companies in the IN Chemicals Industry?

Price-To-Earnings vs Industry: 523694 is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the Indian Chemicals industry average (18.7x)

Price to Earnings Ratio vs Fair Ratio

What is 523694's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

523694 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	25.6x
Fair PE Ratio	22.3x

Price-To-Earnings vs Fair Ratio: 523694 is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the estimated Fair Price-To-Earnings Ratio (22.3x).

Share Price vs Fair Value

What is the Fair Price of 523694 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 523694 (₹545.45) is trading above our estimate of fair value (₹130.94)

Significantly Below Fair Value: 523694 is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Apcotex Industries forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

23.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 523694's forecast earnings growth (23.8% per year) is above the savings rate (6.8%).

Earnings vs Market: 523694's earnings (23.8% per year) are forecast to grow faster than the Indian market (18.5% per year).

High Growth Earnings: 523694's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 523694's revenue (23.2% per year) is forecast to grow faster than the Indian market (10.5% per year).

High Growth Revenue: 523694's revenue (23.2% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if 523694's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Apcotex Industries performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

26.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 523694 has high quality earnings.

Growing Profit Margin: 523694's current net profit margins (10.2%) are lower than last year (10.9%).

Past Earnings Growth Analysis

Earnings Trend: 523694's earnings have grown significantly by 26.6% per year over the past 5 years.

Accelerating Growth: 523694's earnings growth over the past year (52%) exceeds its 5-year average (26.6% per year).

Earnings vs Industry: 523694 earnings growth over the past year (52%) exceeded the Chemicals industry 20.3%.

Return on Equity

High ROE: 523694's Return on Equity (27.9%) is considered high.

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Financial Health

How is Apcotex Industries's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 523694's short term assets (₹3.0B) exceed its short term liabilities (₹1.6B).

Long Term Liabilities: 523694's short term assets (₹3.0B) exceed its long term liabilities (₹438.4M).

Debt to Equity History and Analysis

Debt Level: 523694's net debt to equity ratio (8.3%) is considered satisfactory.

Reducing Debt: 523694's debt to equity ratio has increased from 10.7% to 12.7% over the past 5 years.

Debt Coverage: 523694's debt is well covered by operating cash flow (94.6%).

Interest Coverage: 523694's interest payments on its debt are well covered by EBIT (52.8x coverage).

Balance Sheet

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Dividend

What is Apcotex Industries's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

1.10%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 523694's dividend (1.1%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: 523694's dividend (1.1%) is low compared to the top 25% of dividend payers in the Indian market (1.7%).

Stability and Growth of Payments

Stable Dividend: 523694's dividends per share have been stable in the past 10 years.

Growing Dividend: 523694's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.5%), 523694's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 523694 is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure

CEO

Abhiraj Choksey (45 yo)

12.25yrs

Tenure

₹14,348,000

Compensation

Mr. Abhiraj Atul Choksey has been the Managing Director of Apcotex Industries Ltd., since May 1, 2010 and serves as its Executive Director. Mr. Choksey serves as a Director of Titan Trading & Agencies Limi...

CEO Compensation Analysis

Compensation vs Market: Abhiraj's total compensation ($USD180.20K) is below average for companies of similar size in the Indian market ($USD281.63K).

Compensation vs Earnings: Abhiraj's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: 523694's management team is considered experienced (3 years average tenure).

Board Members

Experienced Board: 523694's board of directors are seasoned and experienced ( 10.1 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: 523694 insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/13 00:00
End of Day Share Price	2022/08/12 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31