The stock of this rubber company has jumped 76% in two months


Shares of Apcotex Industries were stuck in the upper 10% circuit, hitting a record high of 640.30 rupees on BSE in Monday’s trade, expecting strong earnings.

The rubber products company’s stock has surpassed its previous high of Rs 630 which it hit on May 2, 2022. Over the past two months, the stock has soared 76% after the company reported a strong run. figures for the quarter ended in March. 2022 (Q4FY22).



Apcotex is one of the leading producers of synthetic rubber (NBR and HSR) and synthetic latex (nitrile, VP latex, XSB and acrylic latex) in India. Apcotex’s latex range is used for paper or board coating, carpet backing, tire cord dipping, construction, glove examination, surgical and industrial uses, and more.

For the fourth quarter of FY22, Apcotex reported a 36.7% year-on-year (YoY) increase in profit after tax (PAT) of Rs 30.9 crore, driven by 48.5% growth in YoY operating revenue at Rs 278 crore. Meanwhile, earnings before interest, tax, depreciation and amortization (EBITDA) margin improved 27 basis points to 16.32% from 16.05% in Q4FY21.

“The company hit all-time highs in Q4FY22 across all financial metrics. As quarterly volumes grew 24% year-over-year with balanced growth across industries, geographies and product groups, work on new expansion projects are on schedule and expected to be completed in Q3FY23,” the company said.

Overall, the company is optimistic about its prospects with all the steps taken over the past 2 years. Management expects good business momentum across all product groups to continue in the first half of the new fiscal year (FY23).

“Sales of the new Nitrile Latex product line for the glove industry recovered strongly during the year. The company plans to make this product line one of the future growth drivers. The company is building new latex capabilities at Taloja and Valia which are scheduled to come online during the fiscal year. The company will continue to seek opportunities in new adjacent products as well as inorganic growth opportunities,” added management.

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor

About Virginia Ahn

Check Also

RDA Financial Network increases its equity holdings in The Boeing Company (NYSE:BA)

RDA Financial Network increased its stake in The Boeing Company (NYSE:BA – Get Rating) by …