Scripscan: APM Industries Ltd(FV-2)
Sales 259.82 243.62
PBDT 24.13 26.66
Depreciation 4.62 4.71
PBT 19.51 21.95
PAT 12.60 13.82
Equity 4.32 4.32
Eps Rs 5.83 6.39
For FY12, APM ind had reported 6.65% rise in its sales. But Pat declined by 9% due to erosion in profit margins in H2 due to sudden fall in realisation. APM had declared 30% dividend for the year.
Q U A R T E R E N D ED H A L F Y E A R E N D E D
30.9.2012 30.9.2011 30.9.2012 30.9.2011
Sales 89.21 84.48 149.63 146.19
PBT 9.20 6.37 14.14 12.50
PAT 6.18 4.08 9.41 8.29
Eps Rs 2.86 1.89 4.36 3.83
APM Industries has reported fabulous results for quarter ended Sept 2012 wherein Pat has risen by 50% to 6.18 crores. Eps for Q2 ALONE is 2.86. Eps for H1 is Rs 4.36 as against 3.83 in corresponding half of previous year. APM has declared Interim dividend of 30% i.e 60 Paise.
In FY12, profit margin of APM had declined in H2 due to unexpected slowdown. However, as per industry sources, now there are no signs of slow down. Rather , fibre prices (raw material for producing yarn) have declined recently. and hence, APM should continue maintain its profit margins in H2.
For FY13, APM Industries is likely to achieve Sales of 280 cr and PAT can be Rs 19 crores. Thus, Eps for FY13 should be Rs 8.80. Its Book Value as on 31st march 2012 was Rs 31.40 and should be Rs 38-39 as on 31st march 2013.
Stock is trading at just 2xFY13E Eps and 0.45xFY13E Book Value. APM will definitely declare handsome final dividend also and may also cheer with first-ever Bonus issue. Management is extremely reliable, efficient with low overheads. Few years back when majority of yarn companies reported losses, even at that time, APM continued to report profit which proves investor-friendly attitude of management. Its such a counter which offers a superb dividend yield of over 7% at present prices.A mere forward 3 PE multiple helps me to arrive at a target price of 26rs.Members can expect appreciation of 40-45% in 6-9 months.