Apex Frozen Foods Hits New 52-Week High of Rs.306 Marking Significant Milestone

The stock of Apex Frozen Foods, a key player in the FMCG sector, recorded an intraday high of Rs.306, representing a 4.69% rise on the day. This new peak marks a significant elevation from its 52-week low of Rs.179.2, highlighting a substantial recovery and growth trajectory over the past year. The stock has been on a consecutive five-day gain streak, delivering a cumulative return of 10.96% during this period.

Trading above all major moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — Apex Frozen Foods demonstrates strong technical positioning. This upward momentum contrasts with the broader FMCG sector, which has seen a gain of 7.54% in the aquaculture segment, though Apex Frozen Foods underperformed the sector by 5.52% on the day of the new high.

Over the last year, Apex Frozen Foods has delivered a total return of 25.21%, significantly outpacing the Sensex’s 9.59% return over the same period. The broader market, represented by the BSE500, recorded an 8.13% return, further emphasising the stock’s relative outperformance. The Sensex itself closed at 85,019.56 points, up 0.41% on the day, and remains close to its own 52-week high of 85,290.06.

Financially, Apex Frozen Foods has shown notable figures in recent quarters. The company’s operating profit for the latest period grew by 283.51%, while profit before tax excluding other income (PBT LESS OI) for the quarter stood at Rs.6.82 crores, reflecting a growth of 351.66%. Net sales for the latest six months reached Rs.496.50 crores, with a growth rate of 28.79%. The company’s return on capital employed (ROCE) for the half-year period was recorded at 6.39%, the highest in recent times.

In terms of valuation, Apex Frozen Foods holds a return on equity (ROE) of 4.1 and a price-to-book value of 1.8, indicating a fair valuation relative to its peers. The stock is trading at a discount compared to the average historical valuations of similar companies in the FMCG sector. Over the past year, profits have risen by 338.6%, with a price/earnings to growth (PEG) ratio of 0.1, suggesting a valuation that reflects the company’s earnings growth.

Institutional investors have increased their stake in Apex Frozen Foods by 0.66% over the previous quarter, collectively holding 5.39% of the company’s shares. This participation reflects a growing interest from entities with extensive resources to analyse company fundamentals.

Despite the positive recent performance, it is noteworthy that the company’s operating profit has shown a negative annual rate of change of 22.11% over the last five years, indicating a more cautious long-term growth perspective. This contrast between short-term gains and longer-term trends provides a balanced view of the company’s financial journey.

On the broader market front, the Sensex opened flat with a minor decline of 29.24 points but recovered to close higher by 375.78 points. The index is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish market environment. Mega-cap stocks led the gains, contributing to the Sensex’s overall positive movement.

In summary, Apex Frozen Foods’ attainment of a new 52-week high at Rs.306 is supported by a combination of strong recent returns, favourable financial metrics, and technical strength. The stock’s performance over the past year has notably outpaced key market indices, reflecting a period of momentum within the FMCG sector.

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