Apex Frozen Foods Ltd. share price target

Q3FY22 revenue grew by 39% YoY (-19% QoQ) supported by low base (-20%YoY in Q3FY21 and improvement in realisation (+8%YoY). Volumes grew by 30%YoY on low base. The demand in export market is picking up with re-opening of restaurants & Caterings segment which had seen a sharp contraction during lockdown period. However, the current marine logistic issue is impacting volumes which is gradually improving. Export prices have also improved supported by better demand, better product mix and partially compensate for higher freight charge. Ramp-up in the newly added capacity along with higher contribution of value-added products will support...

Currently, the stock trades at 11x 1Yr Fwd P/E (3Yr Avg=16x). We value the stock at 11X FY23E EPS, factoring the current logistic issues. Current marine logistic issues impacted volumes Q2FY22 revenue grew by 2% YoY (+20%QoQ) despite current sea transport issues aided by improvement in realisation (~6%YoY). Volumes de-grew by 3.5%YoY partially impacted by the non-availability of shipping containers which we believe is temporary. In export markets, demand is picking up with re-opening of restaurants & Caterings segments which had seen a sharp contraction during lockdown period....

Q1FY22 revenue grew by 2% YoY (+23%QoQ) aided by recovery in demand along with firm realisation, despite reduction in export incentive. In export markets, demand from restaurants & catering had seen a sharp contraction during lockdown period which was partly compensated by higher demand from the retail segment. Now, with reopening of institutional segment, demand is picking up. However, the volumes were partially impacted by the non-availability of shipping containers which we believe is temporary. Export prices have also improved supported by better demand. Ramp-up in the newly added capacity along with higher contribution of value-added products will support future growth. We expect revenue growth of 34% CAGR over FY21-23E....

Currently, the stock trades at 9x 1Yr Fwd P/E (2Yr Avg=14x). We value the stock at 9X FY23E EPS, factoring the current uncertain situation. Healthy volumes in challenging conditions Q4FY21 revenue grew by 29% YoY aided by recovery in volumes along with firm realisation despite reduction in export incentive. In export markets, demand from restaurants & catering saw a sharp contraction which was partly compensated by higher demand from retail segment. Now, with re-opening of institutional segment, demand is likely to pick up. Export prices have also improved recently supported by...

Currently the stock trades at 13x 1Yr Fwd P/E (2Yr Avg=16x). We value the stock at 12X FY22E EPS, considering the current uncertain situation. Covid-19 impacts volumes but better than expected The COVID-19 pandemic has disrupted the industry supply-chain significantly due to global lock-down. Q1FY21 volumes de-grew by 11.4% YoY. April witnessed a significant impact, while May & June saw near-normal levels of operations. The revenue de-growth was mere at 1.6% YoY aided by improvement in realisation and benefit from rupee depreciation. In export markets, demand from restaurants &...

Apex Frozen Foods Ltd (Apex) is an integrated producer and exporter of processed shrimps in Andhra Pradesh with an own capacity of 29,240MT . The global lockdown on account of COVID19 pandemic has disrupted...

New capacity will improve volume & realisation Apex Frozen Foods Ltd (Apex) is an integrated producer and exporter of processed shrimps in Andhra Pradesh. Q2FY20 revenue grew by 5.4%YoY aided by growth in both volumes (2%YoY) and realization (2%YoY). EBITDA margin improved by 410bps YoY supported by improvement in realization, backward integration (hatchery & farms), reduction in storage & processing cost and stable currency. Apex has commenced commercial production from the new capacity (20,000MT, ~2x existing capacity), but waiting for certain approvals for export to US and EU which is expected by December. From the new capacity, 5000MT is for ready to eat (will improve realisation & margin) and management expects no major delay in...

New capacity ready, support volume & realisation Apex Frozen Foods Ltd (Apex) is an integrated producer and exporter of processed shrimps in Andhra Pradesh. Q1FY20 revenue de-grew by 7%YoY. Adjusting for a one-time item in Q1FY19, decline was 2.8%. Volumes declined by 2%YoY. Gross margin declined by 1150bps due to the procurement of raw material at a relatively higher price on account of pending order execution of the previous quarters....

Apex Frozen Foods Ltd (Apex) is an integrated producer and exporter of processed shrimps in Andhra Pradesh. Revenue de-grew by 19%YoY (below expectation) due to 13%YoY decline in volumes and 7% decline in realization. Deficit in supply of required size of shrimps and high base impacted volumes....

Apex Frozen Foods Ltd (Apex) is an integrated producer and exporter of processed shrimps in Andhra Pradesh. The company has processing capacity of 15,240MT including leased capacity of 6,000MT. Apex has almost doubled its processing capacity during FY14-18 to...

The offer comprises a fresh issue of 72.5 lakh equity shares (~| 125 crore) and an offer for sale of 14.5 lakh equity shares (~| 25 crore). The IPO proceeds will be used for funding new shrimp processing unit of ~20, 000 MTPA (~| 90 crore) and for general...

Incorporated in 1995, Apex Frozen Foods Limited is in the business of produces and exports aquaculture products. It supplies products to food companies, retail chains, restaurants, club stores and distributors. Apex produces two kinds of shrimps namely the Whiteleg shrimp (Litopenaeus vannamei) and the Black Tiger Shrimp (Penaeus monodon). It has operations in the United States, United Kingdom and various European countries. The company's output majorly comprises of variants of processed Vannamei shrimp (White...

Apex Frozen Foods Ltd. (AFFL) is one of the integrated producer and exporter of shelf stable quality aquaculture products. It supplies its ready-to-cook products to a diversified client base and distributors spread across the USA, UK and various European countries. The company will be utilizing around 70% (Rs. 901.5mn) of the net proceeds for setting up a new shrimp processing unit, while the rest...