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