Current Rating and Its Implications
The 'Hold' rating assigned to Apcotex Industries Ltd indicates a neutral stance for investors. It suggests that while the stock is not currently a strong buy, it also does not warrant a sell recommendation. Investors are advised to maintain their existing positions and monitor the company’s developments closely. This rating reflects a balanced view of the company’s quality, valuation, financial trends, and technical indicators as they stand today.
Quality Assessment
As of 22 January 2026, Apcotex Industries demonstrates a solid quality profile. The company boasts a high return on equity (ROE) of 17.89%, signalling efficient management and effective utilisation of shareholder capital. Additionally, its return on capital employed (ROCE) stands at a healthy 15.6%, underscoring the firm’s ability to generate profits from its capital base. The company’s management efficiency is further highlighted by its low Debt to EBITDA ratio of 0.68 times, indicating a strong capacity to service debt without undue financial strain.
Valuation Considerations
The valuation of Apcotex Industries is currently assessed as fair. The stock trades at an enterprise value to capital employed ratio of 2.9, which is at a discount compared to its peers’ historical averages. This suggests that the market is pricing the stock conservatively relative to its capital base. The company’s price-to-earnings-to-growth (PEG) ratio is 0.8, indicating that earnings growth is not fully reflected in the stock price, which could be attractive to value-oriented investors. Despite this, the stock’s returns over the past year have been negative at -5.19%, reflecting some market caution.
Financial Trend and Performance
The financial trend for Apcotex Industries remains positive. The company has delivered consistent growth in key metrics, with net sales increasing at an annual rate of 27.88% and operating profit surging by 66.61%. Over the past year, profits have risen by 31.7%, demonstrating robust operational performance. The company has reported positive results for the last three consecutive quarters, with an operating profit to interest coverage ratio peaking at 13.72 times, indicating strong earnings relative to interest expenses. Dividend payments remain healthy, with a dividend per share of Rs 6.50 and a payout ratio of 62.33%, reflecting a balanced approach to rewarding shareholders while retaining capital for growth.
Technical Analysis
From a technical perspective, the stock exhibits mildly bearish signals as of 22 January 2026. The short-term price movements have been mixed, with a one-day gain of 1.86% offset by declines over longer periods: -1.69% over one week, -9.32% over one month, and -11.39% over six months. Year-to-date, the stock has declined by 7.18%. These trends suggest some near-term caution among traders, although the company’s underlying fundamentals remain sound.
Market Position and Sector Context
Apcotex Industries holds a significant position within the industrial products sector. With a market capitalisation of approximately ₹1,766 crores, it is the second-largest company in its sector, representing 9.77% of the entire industry. Its annual sales of ₹1,417.12 crores account for 42.25% of the sector’s total, underscoring its importance as a key player. The majority shareholding remains with promoters, providing stability in ownership and strategic direction.
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Investor Takeaway
For investors, the 'Hold' rating on Apcotex Industries Ltd suggests a cautious but steady outlook. The company’s strong quality metrics and positive financial trends provide a solid foundation, while the fair valuation and mild technical weakness advise prudence. Investors should consider maintaining their current holdings and watch for further developments in earnings growth and market sentiment. The stock’s discount to peers and attractive PEG ratio may offer upside potential if operational momentum continues and market conditions improve.
Summary of Key Metrics as of 22 January 2026
• ROE: 17.89%
• ROCE: 15.6%
• Debt to EBITDA: 0.68 times
• Net Sales Growth (Annual): 27.88%
• Operating Profit Growth (Annual): 66.61%
• Operating Profit to Interest Coverage (Quarterly): 13.72 times
• Dividend per Share: Rs 6.50
• Dividend Payout Ratio: 62.33%
• Enterprise Value to Capital Employed: 2.9
• PEG Ratio: 0.8
• 1-Year Stock Return: -5.19%
These figures collectively underpin the current 'Hold' rating, reflecting a company with strong fundamentals but facing some valuation and technical headwinds in the near term.
Conclusion
Apcotex Industries Ltd’s current 'Hold' rating by MarketsMOJO, last updated on 12 Nov 2025, is supported by a comprehensive evaluation of quality, valuation, financial trends, and technical factors as of 22 January 2026. While the company exhibits robust operational performance and efficient management, the stock’s recent price performance and mild bearish technical signals counsel a measured approach. Investors should keep a close eye on upcoming quarterly results and sector developments to reassess the stock’s potential trajectory.
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