Weekly Tactical Pick – Why this chemical stock warrants a look?

Apcotex is a beneficiary of the import substitution theme and volumes should drive growth with a subsequent pick-up in margins

Moneycontrol Research
May 19, 2023 / 09:54 AM IST
Weekly Tactical Pick – Why this chemical stock warrants a look?

Apcotex, a leading synthetic latex and rubber company, warrants attention.

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

The quarter gone by has been a differentiator for chemical names in terms of financial performance. Only few were able to sustain margins and fewer had guided for a strong growth visibility in the current fiscal. Apcotex (CMP: Rs 478; Market Cap: Rs 2,477 crore, Nifty: 18,130), a leading synthetic latex and rubber company, warrants attention in this context. In the recent past, the company has been struggling with high-cost inventory. A couple of products — latex for medical gloves...