Apcotex Industries Q1 Review - Nitrile Latex Continues To Weigh On Margins; Maintain Hold: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Apcotex Industries Ltd. reported revenue of Rs 337 crore, marking a notable 21% increase YoY and 8% QoQ, in line with our estimate. However, gross margins declined to 26.7%, down by 359 basis points compared to the previous quarter.Apcotex reported an Ebitda of Rs 32 crore, representing a 25% increase YoY and a 1% increase QoQ, missing our estimate of Rs 36 crore. The company reported Ebitda margins of 9.4%, up by 25 bps YoY but down by 65 bps QoQ.Profit after tax amounted to Rs 15 crore, reflecting a substantial 22% increase YoY and a 3% decrease QoQ, missing our estimate of Rs 19 crore..We marginally revise our estimates considering recent performance and persistent uncertainties in the sector. While we remain optimistic about a rebound in profitability, we are cautious about the potential risk of prolonged sluggishness.We value the company at 15 times FY26E earnings, with a target price of Rs 451 per share, implying a limited downside of 3% from the current market price. We maintain our 'Hold' rating on the stock..Key risks to our estimates and target priceProlonged weakness in Latex Margins and other product margins forcing the company to switch to other products/reduced utilization levels.Imposition of Anti Dumping Duties resulting in improved competitive position.Faster-than-expected ramp-up in utilisation level in new plants..Click on the attachment to read the full report:.Ajanta Pharma Q1 Results: Profit Rises 18%, Beats Estimates.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Apcotex Industries Q1 Review - Nitrile Latex Continues To Weigh On Margins; Maintain Hold: Axis Securities

While the brokerage remains optimistic about a rebound in profitability, but are cautious about the potential risk of prolonged sluggishness.

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Apcotex Industries Q1 Review - Nitrile Latex Continues To Weigh On Margins; Maintain Hold: Axis Securities

While the brokerage remains optimistic about a rebound in profitability, but are cautious about the potential risk of prolonged sluggishness.

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