Apcotex Industries Stock Research

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Apcotex Industries Overview

Apcotex Industry is one of the leading producers of Synthetic Rubber (NBR & HSR) and Synthetic Latex (Nitrile, VP latex, XSB & Acrylic latex) in India (as per company website). The company is headed by Mr. Atul Choksey former Managing director of Asian paints.

The products created by Apcotex have uses in variety of Industries. So it does not supply directly to consumer. Various Industries are consumer of products created by it.

Synthetic Rubber find application in products such as Automotive Components, Hoses, Gaskets, Rice De-husking Rollers, Printing and Industrial Rollers, Friction Materials, Belting and Footwear.

Synthetic Latex are used for Paper/Paper Board Coating, Carpet Backing, Tyre Cord Dipping, Construction, Paint Emulsion and Textile Finishing.

There are not many companies operating in this segment in India. It has near monopoly in Synthetic rubber production in India. India is 4th largest producer of natural Rubber.

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With growing economy the demand of rubber will increase. It will benefit Apcotex Industry. Having said that lets see how this company has performed over the years on Stock Exchange.

Apcotex Share Price Performance

Below image shows share price performance of Apcotex Industries for past eighteen year period. This will show how well the company has performed for investors.

Apcotex Industries Share Price Performance 2018
Apcotex Industries Share Price Performance 2018

As you can see above the prices were around 8 mark in year 1999. Till year 2010 there was not significant movement in prices. It was slow gradual movement. But one thing is worth noting. The prices never had slow decline for brief period.

This means company has maintained the performance or had flat results but never had back to back negative results. This is reflected in price movement. After the year 2010 the prices moved more rapidly than past.

The last five years were golden period in its run. In this time frame it moved from 80 odd levels to 600 odd levels making good fortune for investors. The dividend yield at current price is also above 1%.

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So investors are rewarded with positive price movement as well as dividend yield. The best part is people have made money in this company if they have invested in past. The company had slow rising graph from start. This is indeed hall mark of a good company.

Apcotex Industry My Opinion

I would like to disclose that I am invested in Apcotex industries as of now. Ihave reviewed this company here because it is present in the portfolio of Vijay Kedia.

The company meets all the points I am looking for investment. It has good pedigree management in form of Atul Choksey. It is operating in niche segment of Synthetic rubber and Synthetic latex.

In this segment it has monopoly in India and there are not too many listed players in India. The demand of rubber and latex will increase with time. I am playing for transformation of India from developing nation to developed nation.

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India imports the synthetic rubber and synthetic latex to fulfill its requirement. The company has the opportunity to produce and cater the home market.

Based on above basic principles of Fundamental investing I have invested in this company and all track the company for any news. If you are interested in this company then you should do your own analysis on top of what I have shared above. That will help you understand the company better before making a decision.

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