This company reports excellent Q3 numbers; Buy

Firstcall India Equity | Jan. 7, 2016, midnight


- Apcotex Industries Ltd. is one of the leading producers of Performance Emulsion Polymers in India.

- Revenue for the 3rd quarter rose by 19.30% to Rs. 849.44 million from Rs. 712.04 million over the corresponding quarter last year.

- Net profit for the quarter increased by 95.48% to Rs. 60.50 million from Rs. 30.95 million, when compared with the prior year period.

- During Q3 FY15, EBITDA increased by 69.81% to Rs. 114.35 million from Rs. 67.34 million over the corresponding quarter last year.

- Earnings per Share for the company were Rs. 5.79 compared to Rs. 2.96 in Q3 FY14, registered a growth of 95.48%.

- During Q3 FY15, Profit before Tax increased by 119.57% to Rs. 85.26 million from Rs. 38.83 million over the corresponding quarter of the previous year.

- Net profit grew by 99.65% to Rs. 189.09 million for the end of 9M FY15 from Rs. 94.71 million for the end of 9M FY14.

- Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 33% each over 2013 to 2016E respectively.

Outlook and Recommendation:
At the current market price of Rs.466.10, the stock P/E ratio is at 19.06 x FY15E and 16.09 x FY16E respectively. Investors are recommended to buy the stock for a price target of Rs.520.00 for medium to long term investment.


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