APM INDUSTRIES CHEAP VALUVATION HUGE POTENTIAL

APM INDUSTRIES earlier known as orient syntex

Apm industries is in synthetic blended yarn sector located in Bhiwandi industrial area with a spindle capacity nearly of 60000 It has more than 5% div yield. P/E is less than 7 and P/BV 0.6 Cash flow yield is about 30%. EPS and sales growth are consistent. Net profit margin is growing and consistent. Promoter holding is 61% and increased holding Dividend is growing too. ROE is at an adequate position and consistent around 12-13%. Debt to equity is almost 0.

Having said that, why is such a value opportunity not utilized yet in this Bull Run or is this value trap? Am I missing something?

The financial numbers speak that APM Industries Limited is a descent business, which has been growing at a moderate pace of 8-10% per year while maintaining 10-12% operating margins. Net profit margins have also improved over last 4-5 years to 6-8%.

APM Industries is paying its due tax as the rate of tax paid is about 33-35%, which is a good sign.

Profits are being collected in cash and the operating efficiency levels are improving year on year whether we measure it by asset turnover, inventory turnover or receivables days. APM Industries has been generating good cash from operations and has used repay debt now it is debt free cash flow for the last three yrs at 37 cr 22 cr and 32 cr

APM Industries has been sharing its earnings with shareholders as it has started paying dividend since FY2011, the year since its profitability has shown improvements. Dividends have increased over the years with growth of the company.

Its market capitalization is INR 112 P/E ratio is currently 6 and Evebita of 4 now Welspun syntex is quoting at At 12 PE 8 Evebita and 3 times book value with a debt of 180 cr

Now seniors please throw some light on valuations and promoter history and corporate governance
Discl. I have invested a tracking qty

 

Good things are the ones that you had mentioned: Low P/E, low debt and market cap and regular dividend play. One thing that struck me is the growth story, company's topline has not grown very fast (241 - 308cr in 5 years) and the PAT, EBITDA and EPS also have been fluctuating a bit. Having said that, I don't think that the price fluctuation matters a lot on these things a lot . At least in short to medium term, since this sector itself is seeing a lot of momentum, I think you should see good growth in the stock as well in 1-2 years. All the best!

 

Check it out. https://goo.gl/ikufBg

 

With heavy delivery volume it is clear some huge accumulation is going on now days one thing is clear the big guys first beat the stock create panic buy lower from weak hands and the real value comes and HNI and operater make money retail investor should not sell in panic and hold to such good stocks like this and even associated alcholol discussed here they created panic first and now see hitting uc

 

this was earlier reccommended by valuepickblog vp sir and also it been discussed in valuepickr
ayushmitAyush MittalVP Moderator, Top Contributor
19h
indirachitra
Forgot to mention the good thing in APM is consistent rise in dividends and dividend payout.

 

already the stock discussed by them associated alcholos has gone up by 80% so we should keep track of it these guys will tell some negative and buy low see what happened to associated alcholol i think apm industries can go upto 86 that is the book value of the stosk and 19 cr net profit for fy 15 and cash flow above 30 cr with just 11 cr debt the june qtr result was also resinable hence we are getting a chance to buy it low

 

Somebody is trying to accumulate at lower price with very good fundamental this is a good stock were you apply the Monish Prabhai principle HEADS I WIN AND TAILS I DONT LOOSE principle with no downside but a potential upside in short term is possible in near term

 

Vardhman textiles is one of the best company worth investing in textiles.This is most efficient ,top qualty producer with presence in spinning, weaving,dyeing,processing, fibre production ,sewing thread,garments , knitting yarn,woolen knitting yarns ,special steels etc.This is the undisputed leader of textiles in India.Company with low debt,financially very strong,always showing profit even in down turn ,history of bonus and dividends.All other textiles stocks are very weak and you can check them for last 5 to 10 years and weakness of all will be exposed..RSWM is distant second which has got leadership in synthetics and is also a reasonably good company.Vardhman has got leadership in cotton and blended.All other textiles stocks are Barsati Mendak,so stay away from them.Even so called experts investing in page industry and other fancy stocks etc will lose their shirts with in maximum two years.
I am deeply associated with textile industry for more than last three decades .I am invested in Vardhman Textiles and biased with self interst, this is my disclosure. So only after proper study and taking opinion of your financial adviser,U can buy Vardhman on weakness.