Buy Apex Frozen Foods, target price Rs 355: Geojit

Geojit has buy call on Apex Frozen Foods with a target price of Rs 355. The current market price of Apex Frozen Foods Ltd. is Rs 293.4. Time period given by analyst is one year when Apex Frozen Foods Ltd. price can reach defined target.
Apex Frozen Foods Ltd., incorporated in the year 2012, is a Small Cap company (having a market cap of Rs 932.66 Crore) operating in Aquaculture sector.

Apex Frozen Foods Ltd. key Products/Revenue Segments include Food Products and Export Incentives for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Standalone Total Income of Rs 269.90 Crore, up 18.63 % from last quarter Total Income of Rs 227.51 Crore and up 2.31 % from last year same quarter Total Income of Rs 263.80 Crore. Company reported net profit after tax of Rs 22.03 Crore in latest quarter.


Investment Rationale
The brokerage believes the current issue of shortage in shipping containers is temporary and industry outlook has improved given the re-opening of restaurants & caterings in export markets along with strong shrmp export prices. Apex currently trades at 11x 1Yr Fwd P/E (3Yr Avg=16x). It values at 11x on FY23E EPS considering current uncertain situation in the short-term, arrived at a revised Target of Rs.355, and maintain Buy rating.

Promoter/FII Holdings
Promoters held 72.62 per cent stake in the company as of 30-Sep-2021, while FIIs owned 0.11 per cent, DIIs 7.53 per cent.