APM INDUSTRIES - BUY

APM INDUSTRIES is a Rajastan base Synthetic blended

yarn manufacturing company  with a capacity of 49280

Spindles . Company is performing well for the past

many years . Recently company has initiated various

steps to improve its capacity utilization and cutting

costs which is expected to augur well for the company

to reap better financials in near future. At a time of

re-rating in textile sector stocks are going on ,

one may add in small quantity for decent return in

medium term. For the full year ended APM posted a

turnover of Rs.196 Cr a net profit of Rs.6.6 Cr.

On an equity base of 4.32 Cr. ,EPS is around Rs.15/- .

For the June qtr ended 3 months ,Company posted a

turnover of Rs.54 Cr v/s Rs.44 Cr and a net profit

of Rs.3.16 Cr v/s Rs.1 Cr .EPS for three month is

Rs.7.3 v/s Rs.2.5/- on FV 10 Share . Company’s corporate governance

quality is a bit concerning factor and limiting an

aggressive BUY call .So take limited exposure at

current market price of Rs.69/-