Apcotex Industries Ltd (APCOTEXIND) AI Stock Analysis

• Market Cap: ₹17.79B
• Dividend Yield: 1.75%
• Average Volume (3M): 2.45K
• Price to Earnings (P/E): 21.8
• Beta (1Y): 0.57
• Revenue Growth: 12.89%
• EPS Growth: 39.39%
• Country: IN
• Employees: 565
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 4.29
• Shares Outstanding: 51,844,960
• 10 Day Avg. Volume: 2,048
• 30 Day Avg. Volume: 2,447
• PEG Ratio: 80.49
• Price to Book (P/B): 3.03
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 48.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 14.7
• Revenue Forecast (FY): ₹14.42B

• Rating: 71 Outperform
• Price Target: ₹379.00 ▲(2.63% Upside)
• Action: Upgraded Date: 11/07/25
• Date: Action: Upgraded 11/07/25

Apcotex Industries Ltd's strong financial performance, characterized by consistent revenue growth and a stable balance sheet, is the primary driver of its stock score. Technical indicators suggest a cautious outlook due to mixed signals, while the valuation remains reasonable with a moderate P/E ratio and a modest dividend yield.

Positive Factors

Conservative leverage and strong equity backing

A low debt-to-equity ratio and a 55.4% equity ratio provide durable financial flexibility. This conservative capital structure reduces refinancing risk during cycles, supports steady investment in capacity or R&D, and underpins the company's ability to sustain operations through sector downturns.

Improving cash generation and rising free cash flow

A large year-over-year free cash flow increase and strong operating-cash-to-net-income ratio indicate robust cash conversion from operations. This supports capex, working capital needs and potential shareholder returns while lowering dependence on external financing over the medium term.

Niche specialty-chemicals business serving tyre and rubber markets

Focused production of NBR, NBR latex and rubber chemicals positions the company in higher-value, industrial B2B markets. Close ties to tyre and rubber manufacturers create sticky demand, product customization advantages, and barrier-to-entry dynamics that support sustained revenue streams.

Negative Factors

Low net profit margin despite high operating margins

A wide gap between healthy EBIT margin and a low net margin suggests significant non-operating costs, interest, taxes or one-offs eroding bottom-line returns. Persistently low net margins constrain retained earnings and limit the firm's ability to build reserves or fund growth internally.

High capital expenditure pressure reducing free cash flow conversion

Material capex needs lower FCF-to-net-income conversion, indicating ongoing investment intensity. Sustained high capex can limit discretionary spending, compress return on invested capital, and require continued operational efficiency to justify the outlays over multiple cycles.

Rising absolute debt over time

Although current leverage is moderate, a trend of rising total debt increases interest and refinancing exposure if growth slows. Continued debt accumulation without commensurate margin or cash-flow improvement could weaken the balance sheet and reduce strategic flexibility.

Apcotex Industries Ltd Business Overview & Revenue Model

Company Description

Apcotex Industries Limited produces and sells synthetic emulsion polymers in India. It offers synthetic latexes, such as carboxylated styrene butadiene, styrene acrylic, vinyl pyridine, and nitrile latexes; and synthetic rubber, including nitrile, NBR polyblend and powder, and high styrene rubber products. The company's synthetic latexes are used in applications, such as tire cord dipping, paper and paperboard coating, carpet backing, concrete modification/water proofing, non-wovens, textile finishing, paints, gloves, etc.; and synthetic rubber for use in various applications comprising footwear, automotive components, rice rolls, molded items, V-belts, conveyor belts, hoses, etc. It also exports its products. The company was formerly known as Apcotex Lattices Limited and changed its name to Apcotex Industries Limited in 2005. Apcotex Industries Limited was founded in 1980 and is headquartered in Mumbai, India.

How the Company Makes Money

Apcotex makes money mainly by manufacturing and selling (1) synthetic rubber and latex and (2) rubber chemicals to industrial customers. Synthetic rubber and latex revenues are generated from supplying NBR and NBR latex that are used in applications such as automotive and industrial rubber goods (including hoses, seals, gaskets) and latex-based products; pricing and volumes are driven by customer demand, application mix, and prevailing market prices for synthetic rubber. Rubber chemicals revenues come from selling compounding additives (e.g., accelerators and antioxidants) to tyre and non-tyre rubber manufacturers; these products are typically sold business-to-business and are linked to customers’ rubber production levels. The company’s earnings are also influenced by raw-material and feedstock costs common to petrochemical-linked inputs, product mix (higher-value specialty grades vs. commodity grades), export vs. domestic sales mix, and utilization of its manufacturing capacities. Specific information on material partnerships, customer concentration, or contract structures is null.

Apcotex Industries Ltd Financial Statement Overview

Summary

Apcotex Industries Ltd exhibits robust financial health with consistent revenue and profit growth, supported by a strong balance sheet and improving cash flows. While its leverage remains manageable, the company must monitor debt levels closely to sustain financial flexibility.

Income Statement

Apcotex Industries Ltd has demonstrated strong revenue growth, with a 25% increase in total revenue from 2024 to 2025 and consistent growth over the past several years. The gross profit margin improved to 26% in 2025, and the net profit margin remained stable at about 3.9%. The EBIT margin has shown improvement, reaching 20.7% in 2025, indicating efficient management of operational expenses. However, the EBITDA margin decreased slightly, suggesting increased depreciation and amortization expenses.

Balance Sheet

The company's balance sheet is stable with a debt-to-equity ratio of 0.34, reflecting a conservative approach to leveraging. Return on equity (ROE) is moderate at 9.8%, indicating reasonable profitability relative to shareholder equity. The equity ratio stands at 55.4%, showcasing strong asset backing by equity. However, the increase in total debt over the years is a point of caution.

Cash Flow

Cash flow analysis reveals a positive trend in free cash flow, which grew significantly by 179% from 2024 to 2025. The operating cash flow to net income ratio is strong at 1.57, indicating efficient cash generation from operations relative to profit. However, free cash flow to net income ratio is lower at 0.64, suggesting significant capital expenditures that need to be managed carefully.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.17B	13.92B	11.13B	10.69B	9.51B	5.38B
Gross Profit	3.58B	3.62B	3.30B	3.56B	1.99B	1.95B
EBITDA	1.62B	1.25B	1.22B	1.66B	1.48B	747.81M
Net Income	727.66M	540.65M	538.79M	1.08B	988.06M	441.59M
Balance Sheet
Total Assets	9.41B	9.99B	9.22B	8.03B	6.05B	4.52B
Cash, Cash Equivalents and Short-Term Investments	809.80M	616.38M	377.27M	302.00M	172.71M	248.63M
Total Debt	1.35B	1.89B	1.88B	1.52B	502.64M	145.90M
Total Liabilities	3.61B	4.46B	4.00B	3.27B	2.09B	1.46B
Stockholders Equity	5.80B	5.53B	5.22B	4.76B	3.96B	3.05B
Cash Flow
Free Cash Flow	861.48M	347.68M	124.39M	-656.34M	-204.09M	514.77M
Operating Cash Flow	1.07B	847.20M	402.12M	1.21B	475.44M	752.24M
Investing Cash Flow	-117.66M	-287.49M	-196.35M	-1.79B	-670.64M	-368.93M
Financing Cash Flow	-840.20M	-444.87M	-129.89M	707.79M	119.27M	-462.58M

Apcotex Industries Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 369.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:APCOTEXIND, the sentiment is Negative. The current price of 369.3 is above the 20-day moving average (MA) of 362.67, above the 50-day MA of 360.80, and below the 200-day MA of 380.40, indicating a bearish trend. The MACD of -4.81 indicates Positive momentum. The RSI at 32.65 is Neutral, neither overbought nor oversold. The STOCH value of 19.82 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:APCOTEXIND.

Apcotex Industries Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APCOTEXIND	71 Outperform	₹17.79B	21.84	―	1.75%	12.89%	39.39%
BEPL	71 Outperform	₹21.19B	13.36	―	4.47%	―	―
SHREEPUSHK	68 Neutral	₹9.83B	17.66	―	0.52%	28.67%	50.12%
PRAKASH	63 Neutral	₹21.56B	7.56	―	1.10%	-12.15%	-6.47%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MOL	46 Neutral	₹10.81B	-115.81	―	―	―	―

Apcotex Industries Ltd Corporate Events

Apcotex faces Rs 1.02 crore tax demand, sees no material impact

Apcotex Industries Ltd has disclosed that it received an order from the National Faceless Appeal Centre of the Income Tax Department imposing a demand of Rs 1.02 crore in tax, penalty, fine, and interest. The demand stems from additions related to alleged non-reporting of certain transactions during FY 2016-17 by its erstwhile subsidiary Apcotex Solutions India Private Limited, which has since been merged into Apcotex Industries.

The company is evaluating the order and, based on counsel’s advice, will determine its next steps in response to the tax authority’s action. Apcotex has stated that it does not expect the order to have any material financial impact on its operations, suggesting limited implications for its ongoing business activities and stakeholders.

Apcotex to Meet Investors at Valorem Conference in Mumbai

Apcotex Industries Limited has announced its participation in the 11th Annual Valorem Conference – Resilient Corporates, Relentless India, to be held in Mumbai on March 23, 2026, with in-person group meetings scheduled from 9:00 a.m. onwards. The company has informed the stock exchanges that this interaction with institutional investors, analysts, and investment advisors will not involve sharing any unpublished price-sensitive information, underscoring its adherence to SEBI’s disclosure and corporate governance norms.

Apcotex Promoter Plans Internal Transfer of Shares Among Promoter Group

Promoter Rita Ashok Parekh has notified the stock exchanges of her plan to acquire 62,280 shares, representing about 0.12% of Apcotex Industries Ltd’s share capital, from fellow promoters Mrs. Rita Ashok Parekh and Mrs. Janaki Parekh via an inter-se promoter transfer. The shares are to be transferred on March 18, 2026, without any consideration, under an exemption from the open-offer requirement, signaling an internal realignment of promoter holdings rather than a change in overall promoter control or external stake acquisition.

The transaction falls under Regulation 10(1)(a)(i) of SEBI’s Substantial Acquisition of Shares and Takeovers Regulations, 2011, with reference to the recent volume-weighted average market price on NSE. As this is an internal transfer among promoters at nil price and a small percentage of total equity, it is unlikely to materially affect minority shareholders but does clarify the intended restructuring of ownership within the promoter group and ensures compliance through prior disclosure to the exchanges.