📌 At a Glance
Apcotex Industries — once the unsung hero of tyre cord chemicals and synthetic rubbers — has had a bumpy 5-year ride. From FY21’s post-COVID recovery to FY25’s margin pressure, this chemical midcap has swung like a rubber band. PAT peaked in FY23, only to deflate as input costs, demand cyclicality, and stiff global competition kicked in. But is the story really over? Or is Apcotex just charging up for its next chemical rally?
🏭 About Apcotex Industries
- Sector: Auto Tyres & Rubber Products
- Founded: 1986 (Split from Asian Paints)
- Products:
- Synthetic latexes: Nitrile, SBR, VP Latex
- Synthetic rubber: NBR
- Applications: Tyre cord dipping, gloves, carpets, paper, textiles, concrete waterproofing
- Plants: Taloja (Maharashtra), Valia (Gujarat)
👨💼 Key Managerial Personnel (FY25)
| Name | Designation | Remuneration (FY25) |
|---|---|---|
| Abhiraj Choksey | Vice Chairman & MD | ₹2.36 Cr |
| Atul C. Choksey | Chairman (Non-Executive) | ₹1.24 Cr |
| Ravishankar Sharma | Executive Director | ₹1.04 Cr |
| Sachin Karwa | CFO | Not Disclosed |
📊 Financial Performance: FY21–FY25
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 882 | 1,132 | 1,194 | 1,323 | 1,402 |
| YoY Growth (%) | – | 28.4% | 5.5% | 10.8% | 6.0% |
| EBITDA (₹ Cr) | 157 | 218 | 222 | 139 | 125 |
| EBITDA Margin (%) | 17.8% | 19.3% | 18.6% | 10.5% | 8.9% |
| PAT (₹ Cr) | 88 | 126 | 137 | 75 | 54 |
| PAT Margin (%) | 10.0% | 11.1% | 11.5% | 5.7% | 3.8% |
| EPS (₹) | 16.3 | 23.3 | 25.3 | 13.9 | 10.4 |
📉 Observation: Peak profit in FY23, followed by margin compression. EPS halved in 2 years.
💸 Balance Sheet & Cash Flow Highlights
- Net Worth (FY25): ~₹650 Cr
- Debt-to-Equity: Negligible — consistently under 0.1
- Cash Equivalents: Stable (~₹50–60 Cr range)
- Capex History:
- 2022–23: Commissioned 50,000 MT Nitrile Latex plant (Valia)
- 2023–24: Multi-purpose latex plant at Taloja
👉 Still debt-light. But is growth Capex paying off?
📈 Stock & Market Performance
- CMP (June 6, 2025): ₹375.10
- 52W Range: ₹287 – ₹490
- 1-Year Return: -5.5%
- 3-Month Return: +20.9%
- Beta (1Y): 0.8 (Mildly volatile)
📦 Shareholding Pattern (Mar 2025)
| Category | Holding (%) |
|---|---|
| Promoters | 58.23 |
| FIIs | 0.52 ↑ |
| Mutual Funds | 0.01 |
| Public | 41.24 |
🎯 Forward-Looking Fair Value Estimate (FY27E)
- Assumptions:
- FY27E EPS: ₹15–₹18
- PE Range: 18x–22x
🎯 FV Range: ₹270 – ₹396
So current CMP of ₹375 implies market expects a strong recovery already — there’s little upside unless margins rebound.
🔬 Industry & Competitive Outlook
- Tailwinds:
- Growth in tyres, gloves, healthcare, waterproofing sectors
- Shift away from China = Opportunity for Indian polymers
- Headwinds:
- Global overcapacity in nitrile latex
- Input volatility (Butadiene, Acrylonitrile)
- FY25 shows weak demand pickup despite expansion
🧪 Peers: NOCIL, Balkrishna Industries (as customers), Jubilant Ingrevia (as chemical peer)
🧠 EduInvesting Take
So here’s the chemical roast:
- You spend ₹150–₹200 Cr expanding latex capacity.
- Your EPS goes from ₹25 to ₹10.
- Your OPM drops from 18% to under 9%.
- And now you declare a dividend of ₹4.50 per share, like it’s Diwali?
This is the midcap version of:
“Bhai ne gym join kiya, protein liya, supplements liye… aur weight badh gaya — fat ka.”
Apcotex isn’t a fraud — let’s be clear — but it’s stuck in that awkward midcap puberty phase. Not a high-growth chemical story anymore, but not cheap enough to be defensive. This is the IndiaMart of polymers. Great product, confused valuation.
⚠️ Risks & Red Flags
- 🧯 Capex ROI not visible in margins or PAT
- 🔋 Overdependence on auto, tyre, and glove sectors
- 💸 FY25 saw profit drop despite revenue rise — demand quality suspect
- 🧮 PEG Ratio (TTM): 104.3 — a statistical insult
🎁 Dividend History (Last 3 Years)
| Date | Type | Amount |
|---|---|---|
| 13-Jun-2025 | Final | ₹4.50 |
| 03-Feb-2025 | Interim | ₹2.00 |
| 19-Jul-2024 | Final | ₹3.50 |
| 05-Feb-2024 | Interim | ₹2.00 |
Still a decent dividend payer, but beware: it’s being funded by flattish profits.
🧾 Verdict
Is Apcotex a multibagger?
Not unless it fixes margins.
Is it stable?
Yes, but boringly so.
Is it cheap?
On FY25, no. On FY27 dreams, maybe.
Tags: Apcotex Industries, Synthetic Latex, FY25 Results, Tyre Chemicals, Chemical Stocks, Dividend Stocks, Midcap Earnings, Nitrile Latex India
Author: Prashant Marathe
Date: 7 June 2025
Meta Description: Apcotex Industries 5-Year Recap: Revenue grows but profits shrink. Is this chemical midcap worth a second look or is it flatlining post-Capex? Read full analysis.
