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.