Synopsis:
Apex Frozen Foods surged sharply after reporting a staggering 364% increase in net profit on a QoQ basis, followed by a 31% jump in revenue over the same period.
The shares of this shrimp exporter are in focus after the company announced its financial results. In this article, we will dive more into the details. With a market capitalization of Rs 745 crore, the shares of Apex Frozen Foods Ltd are currently trading at Rs 238 per share, representing a decline of 17 percent from its 52-week high of Rs 285.35 per share. Over the past five years, the stock has delivered a negative return of 6 percent.
Q1 Highlights
Apex Frozen Food’s revenue for Q1 FY26 came in at Rs 258.16 crore, registering a 39 percent growth from Rs 185.99 crore in the same quarter last year. Additionally, on a sequential basis, revenue increased by 31 percent from Rs 197.32 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit surge of 139 percent to Rs 9.10 crore in Q1 FY26 as compared to Rs 3.80 crore in Q1 FY25. Additionally, on a QoQ basis, it jumped 364 percent from Rs 1.96 crore.
The company reported export benefits in revenue from operations of Rs 13.61 crore in Q1 FY26, a nice jump from Rs 10.09 crore in Q1 FY25. In Q4 FY25, those benefits were at Rs 10.85 crore, and for the entire FY25, they added up to Rs 45.40 crore.
Export benefits are incentives provided by the government to motivate companies to market their products abroad. These can come in various forms, like tax refunds, duty drawbacks, or financial aid, all aimed at lowering the company’s expenses and boosting the competitiveness of their products in international markets.
The stock delivered a poor ROE and ROCE of 0.78 percent and 2.46 percent respectively, and is currently trading at a high P/E of 81.21x as compared to its industry P/E of 46x.
Written by Satyajeet Mukherjee
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