275% Payout In FY23: Small Cap Stock Okays Rs 2/Share Interim Dividend In FY24; Buy?

On Thursday, Apcotex Industries, a small-cap company in the capital goods category, closed on the BSE with a market valuation of Rs 2,537.03 Cr. Based on styrene-butadiene and butadiene-acrylonitrile chemistry, the firm is one of India's top manufacturers of synthetic rubber (NBR & HSR) and synthetic latex (Nitrile, VP latex, XSB & Acrylic latex).

Paper, tyre cords, carpets, construction materials, textiles, footwear, gloves, automobile components, rice dehusking rollers, hoses, and speciality items are among the markets it serves. In addition, Apcotex is the only producer of NBR, HSR, and X-NBR latexes in India. The company's products are widely utilised in carpet backing, paints, geo textiles, footwear, gloves, conveyor belts, hoses, automotive components, paper and paper boards, water-proofing and repair, cork sheets and gaskets and tyre cord dipping.

Apcotex Industries Dividend

The Board of Directors considered and approved "Declaration of Interim Dividend of Rs. 2/- per equity share of Rs. 2/- each for the financial year 2023-2024. Accordingly, the Board has fixed Monday, 5th February 2024 as a record date for determining entitlement of members for the purpose of payment of interim dividend," said Apcotex Industries in a stock exchange filing.

Apcotex Industries has announced an equity dividend of 275.00% at a face value of Rs 2 for the year ended in March 2023, or Rs 5.5 per share. This generates a dividend yield of 1.14% at the current share price of Rs 489.35. For the past five years, the firm has regularly distributed dividends and has a strong dividend track record. Trendlyne data shows that Apcotex Industries Ltd. has issued 26 dividends since April 24, 2000.

Apcotex Industries Financials

In the December 2023 quarter, the firm recorded revenue from operations of Rs. 257.00 crore, up 9.77% from the year-ago quarter of Rs. 234.13 crore. In Q3FY24, its net profit of Rs. 11.13 crore was recorded, a 45.35% drop from Rs. 20.37 crore in Q3FY23. EBITDA decreased 15.6% from Rs. 32.51 crore in the same quarter last year to Rs. 27.44 crore in the quarter under review.

Apcotex Industries Share Price Target

Apcotex Industries is slightly bullish on the Daily charts but faces strong resistance at 537. A daily close below support of 475 could lead to a target of 437 in the near term. Next resistance above 537 will be at 594, said AR Ramachandran from Tips2trades.

Disclaimer

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