Monday, May 25, 2009

Apcotex Ind..........My old call............

I remember I gave a call on Apcotex Ind on 13 th May 2008.At that time people someone named Ramesh under annonymous id wrote me that why I gave a call when it is time to offload?
I am pasting that comment here:

"I dont know why this is being mentioned now after it has risen more than 50% in 10 days, is it time to offload the operators share???Beter be safe in these markets than to be sorry, as the correctons can be real savage and painful."

My reply to him:

May 14, 2008 2:06 AM

Rajeev Desai said...
Mr Anonymous,That I have already written.............due diligence is must for everyone.It is yours own money and you all have to decide when to buy...but you have no courage to come out with name.....

Then his reply :
Anonymous said...
Hi its me Anonymous again. Its not that I dont have courage to mention my id, but I dont have any id, dont want to create one as long as I can post one anonymous.My name is Ramesh and I live in UK, a small time investor who is fascinated by the indian dynamics and the future. I believe in fundamentals & turnaround stories, but as small investors are the ones at the bottom of the communication chain, things can go very wrong if not invested with diligence.Anyway your mentioning about 30% dividend, how can they actually pay that money as they are not making any profits......Check, they have a profit margin of 0.01%, very very less to call it a profit.Thanks for your good work, will definitely buy others you have mentioned.
May 18, 2008 8:22 PM

My Commnets now on that:

Well, I was charged that I wanted to sell and hence I am recomending it.He gave reasons that they have a very less profit margin......
The latest result that was annouced on bse site today says that on sales of 25 cr they have earned a NP of 1.8 cr which gives a profit margin of 7% .Gving an EPS of 3.35 for the qr.
Apcotex Ind has declared a Div of 40% and that says about my pick.
What I want to say here is it is easy to critisize and allege someone but when the person who alleges goes wrong then he needs to come back and atleast apprecite my call ........and for that one needs to track someone properly and till the end .........

Tuesday, May 13, 2008

Apcotex Ind...........A turn around story..........
Apcotex IndEq : 5.5 crBV : 90CMP : 61FV : 10Apcotex was established in the year 1980 as a division of Asian Paints (India) Ltd., the largest paint manufacturer in India. Apcotex spun-off as a separate company in 1991 and is now part of the 'APCO' group of companies headed by Mr. Atul Choksey, Chairman of Apcotex Industries Ltd. and former Managing Director of Asian Paints. With basic engineering and process know-how from Chemische Werke Huls (CWH) Germany, Apcotex pioneered the production of Vinyl Pyridine Latex, an important raw material for the tyre industry, in India. Subsequently, products such as Carboxylated Styrene Butadiene Latices, Nitrile Latices and Styrene Butadiene Rubbers were developed in-house.Apcotex Industries Ltd. is one of the leading producers of Synthetic Latices (VP latex, XSB latex, Nitrile latex) and Synthetic Rubber (HSR, SBR) in India. The company has one of the broadest ranges of products based on Styrene – Butadiene chemistry available in the market today. Their range of Latices is used, among other applications, for TYRE CORD DIPPING, PAPER/PAPER BOARD COATING, CARPET BACKING, CONCRETE MODIFICATION/WATER PROOFING and TEXTILE FINISHING. The various grades of Synthetic Rubber find application in products such as footwear, automotive components, v-belts, conveyer belts and hoses.Over the past several years,they have developed a strong Research & Development base, which has enabled them to develop, manufacture and export products and compete effectively against global players. Through their technical service team and well-equipped application laboratory, they also provide value added services to enable customers to constantly improve the quality of their final product.Their manufacturing plants are located at Taloja, 50 kms. outside of Mumbai. The manufacturing facilities incorporate state-of-the-art emulsion polymerization technology as well as adequate monomer and finished goods storage facilities and efficient utility support. Additionally, sophisticated DCS control systems ensure fine control over operating parameters.Apcotex believes in implementing best practices across all departments of the company. They adhere to high quality, safety and environmental standards. Apcotex, an ISO 9001: 2000 certified company, is also in the process of implementing the TOTAL PRODUCTIVE MAINTENANCE (TPM) program under the guidance of the JAPAN INSTITUTE OF PLANT MAINTENANCE (JIPM). They have state-of-the-art manufacturing facilities, with plants strategically located just outside the port city of Mumbai, on the west coast of India.TECHNOLOGY,RESEARCH&DEVELOPEMENTApcotex is constantly incorporating latest manufacturing/processing technologies and introducing new products to meet changing customer requirements. A range of sophisticated laboratory analytical instruments, well-equipped pilot plant facilities and close interaction with renowned institutions like The National chemical Laboratory (Pune), Indian Rubber manufacturer’s research Association (Mumbai) and Central Pulp and Paper Research Association (Saharanpur) for advanced analytical services, helps the company achieve its objectives.Their Research and Development laboratory is recognized by the Department of Scientific and Industrial research (DSIR), Ministry of Science & Technology, Government of India.To have world-class manufacturing facilities, Apcotex has been practicing TPM for the last few years with the help of the Japanese Institute of Plant Maintenance (JIPM). The objective is to achieve zero defects, zero losses, zero accidents and zero breakdowns.Apcotex Ind is making profit since last 3 qr and hence can safely assumed that it can show and EPS of over 10 this year ending Mar 09.While other rubber product co getting valuation higher of around over 20 P/E then with a conservative P/E of 12-15 , Apcotex Ind can touch 110-120 in a year time and hence can be a good buy at this level for a 70-80% return.Apcotex Ind is available below BV and promoters has increased the stake since couple of years from below 40% to now over 51% which shows the confidence of promoters in the company.This is my view and due diligence is a must for everybody.One should cross check the information given here and take a call.Update:Apcotex Ind recomended dividend after many years and the Div declared is 30%.This again confirms my take that company is now on a growth path and will deliver profits constantly otherwise there was no need for a dividend decalartion and that too as big as 30%.....even 10% div would have been suffice to show the investment community that company is out of woods....Keeping my fingures crossed.....


  1. Dear Rajeevji,

    How long do you think this rally in mid caps will sustain? Though the prices of mid caps were slaughtered last year and early this year for no fundamental reason, do you see this mid cap rally being carried on longer?

  2. Dear Ram,
    Seems you are not reading what I write properly.Either you read it casually or just don't graps it properly or don't believe it.
    Sorry for the harsh words but I think what ever I write should be read properly and need to be remembered in mind.
    I have written here more then 2-3 times recently that those who will held Cash Gr stocks for 2-3 yrs will have big return.
    I have also written that Mid/small cap should have to outpeform the sensex from hereon.
    I am explaning this since very long citing all reasons....but seems my readers do not read me properly or do not believe me what I write.No bad feeling because I have been proved wrong for whole last year.........

  3. Dear Rajeev,

    Its been a wonderful three months for me. I started buying stocks when there was gloom all around and now my portfolio is already at its boom value in jan 2008. The best part is the bull market has just begun.

    I booked part profit in some of my stocks which went up by 300% and am wondering in which stock to reinvest.

    Can u please advice ??

  4. Dear Rajeevji,
    I respect your views and that is why I am in this blog.
    I was referring to the current rally in the mid-cap and I got the answer from the market today in the form of this breather.
    There was no malice in my earlier post that warranted such reply from you.


  5. Dear Ram,
    I know there is no malice in your post.
    Well, what I wanted to tell here is even in breather some stocks will go down ,but not much.We may never see the Lows we saw in Mar or Oct 08.
    But every breather or every reaction is going to be a good opportunity to buy....that is all I can say.....