KR Choksey is bullish on Apcotex Industries has recommended buy rating on the stock with a target price of Rs 447 in its research report dated June 19, 2017.
KR Choksey's research report on Apcotex Industries
Incorporated in 1986, Apcotex is one of the leading producers of Synthetic Rubber (NBR & HSR) and Synthetic Latex (Nitrile, VP latex, XSB & Acrylic latex) in India.
The company has one of the broadest range of Emulsion Polymers available in the market today. The company’s major raw materials are Butadiene, Acrylonitrile and Styrene, which are petrochemical based products.
This all provides strong business outlook from medium to long term perspective. In terms of PEG, the stock has been available at 0.23x, while the same for BASF and Dow are available at around 1.3x on 2yr fwd basis.
This also provides comfort in terms of demanding higher valuations and hence assigning a P/E multiple of 18x (PEG: 0.3x), we have arrived a target price of INR 447, an upside potential of 20%. We have a BUY rating on the stock.
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