Apcotex: Medium-term opportunities priced in

Unstable macro and pricing environment are key risks to watch for Apcotex

Anubhav Sahu
May 04, 2022 / 09:47 AM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook

Apcotex Industries (CMP: Rs 623; Market Cap: Rs 3,228 crore) has posted a stellar set of results for Q4FY22. Its top line grew 48 percent, and this was equally contributed by pricing and volumes. Demand for medical gloves lifted export sales (20 percent of sales). Overall, volume growth was led by a strong demand in the end-user markets of paper, carpet, and construction. This was backed by the availability of additional capacity of 10,000 tonnes through de-bottlenecking in Q3FY22. Since capacity...