India Equity Value investor, Trivikram Consultants

Prashant Vaishampayan

India Equity Value investor

Picking Long Term Multi-bagger stocks

Trivikram Consultants

Trivikram Consultants is an equity research service founded by Prashant Vaishampayan, a registered Research Analyst with SEBI in India. Prashant has done equity research since 1992.  He worked with Jardine Fleming, SG Securities, UBS and Kotak Securities. Since 2010, he is managing his portfolio and doing outsourced equity research for institutional clients. A team of six professionals helps him in equity research. We focus on pharma, agro-chemicals, auto and auto components, banks and financial services, specialty chemicals and niche manufacturing sectors.   

Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/13310" target="_blank" data-smartkarma-citation="entities:13310:1">Apcotex Industries (APCO IN)</a>   reported a strong result in 1QFY19 with a growth of 25% YoY in revenues to Rs. 1501 Mn. EBITDA Margins expanded 478 bps YoY to 11.9%. PAT was reported at Rs. 112 mn with 115% YoY growth.</li>
<li>
<p>Our PAT estimates for FY19E-20E remain unchanged. We expect the PAT to grow at a CAGR of 23% over a period of FY18-20E with PAT margins to be in the range of 8-9% from current levels of 7%. </p>
</li>
<li>We have changed the valuation methodology of the company. We now value Apcotex chemical business at 24x the EPS of Rs.26.9 for the year ending June 20E. We add net cash per share of Rs.31 as on March18 to arrive at a Fair value estimate of Rs.675/-.</li>
</ul>
<table class="table table-striped">
<tbody>
<tr>
<td style="width: 164px;"> Particulars</td>
<td style="text-align: right; width: 156.242px;"> FY17 </td>
<td style="text-align: right; width: 171.758px;"> FY18 </td>
<td style="text-align: right; width: 169px;"> FY19E </td>
<td style="text-align: right; width: 183px;"> FY20E </td>
</tr>
<tr>
<td style="width: 164px;">PE (x)</td>
<td style="text-align: right; width: 156.242px;">                   38</td>
<td style="text-align: right; width: 171.758px;">                     31</td>
<td style="text-align: right; width: 169px;">                    24</td>
<td style="text-align: right; width: 183px;">              20</td>
</tr>
<tr>
<td style="width: 164px;">ROE</td>
<td style="text-align: right; width: 156.242px;">13%</td>
<td style="text-align: right; width: 171.758px;">17%</td>
<td style="text-align: right; width: 169px;">18%</td>
<td style="text-align: right; width: 183px;">19%</td>
</tr>
<tr>
<td style="width: 164px;">ROCE</td>
<td style="text-align: right; width: 156.242px;">16%</td>
<td style="text-align: right; width: 171.758px;">22%</td>
<td style="text-align: right; width: 169px;">24%</td>
<td style="text-align: right; width: 183px;">24%</td>
</tr>
</tbody>
</table>
<div class="content-caption">
<p>Source:Apcotex Annual Report 2018, Trivikram Consultants research as of 6 August 2018</p>
</div>



Apcotex Industries (APCO IN)   reported a strong result in 1QFY19 with a growth of 25% YoY in revenues to Rs. 1501 Mn. EBITDA Margins expanded 478 bps YoY to 11.9%. PAT was reported at Rs. 112 mn with 115% YoY growth.

Our PAT estimates for FY19E-20E remain unchanged. We expect the PAT to grow at a CAGR of 23% over a period of FY18-20E with PAT margins to be in the range of 8-9% from current levels of 7%. 

We have changed the valuation methodology of the company. We now value Apcotex chemical business at 24x the EPS of Rs.26.9 for the year ending June 20E. We add net cash per share of Rs.31 as on March18 to arrive at a Fair value estimate of Rs.675/-.




 Particulars
 FY17 
 FY18 
 FY19E 
 FY20E 


PE (x)
                   38
                     31
                    24
              20


ROE
13%
17%
18%
19%


ROCE
16%
22%
24%
24%




Source:Apcotex Annual Report 2018, Trivikram Consultants research as of 6 August 2018


Apcotex Industries -1QFY19 -Strong Revenue Growth Continues