Apcotex Industries - Q2FY21 First Cut - ICICI Securities

(CMP: Rs. 161, MCap: Rs. 833 crore)

Operating margins better than estimates on the back of higher gross margins.

Q2FY21 Earnings Summary

- Apcotex reported topline growth of 4.2% YoY to Rs. 129 crore which was primarily led by volume growth. We believe that better demand from auto led an improvement in the business performance for NBR segment

- Better gross margins (+900bps YoY) largely on the back of lower key RMAT prices along with lower pass on the benefit to end users owing to better demand, expanded operating margins for the quarter. OPM expanded by 800bps YoY to 14% translating into EBITDA growth of 171% YoY to Rs. 19 crore

- Lower taxes along with better operational performance improved bottomline growth, which was remained at 200% YoY to Rs. 12 crore

- The company managed to reduce working capital cycle, which helped it to generate CFO to the tune of Rs. 43.7 crore as against Rs. 5.93 crore last year. Large part of the CFO was invested into upcoming capex

Shares of APCOTEX INDUSTRIES LTD. was last trading in BSE at Rs.160.6 as compared to the previous close of Rs. 164.8. The total number of shares traded during the day was 56386 in over 1622 trades.

The stock hit an intraday high of Rs. 164.25 and intraday low of 157.1. The net turnover during the day was Rs. 9004869.

Source : Equity Bulls

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