Buy Apex Frozen Foods; target of Rs 284: Geojit Financial Services

About this update from Apex Frozen Foods Ltd.

Geojit Financial Services research report on Apex Frozen FoodsApex Frozen Foods Ltd. (Apex) is a South India (Andhra Pradesh) based exporter of processed shrimps with a capacity of 34,240MT. In Q1FY26, revenue increased 39% YoY to Rs.258cr, supported by 17% growth in volumes and a 19% improvement in realisations, partly aided by INR depreciation. Gross margin rose 140 bps YoY to 32.9% YoY, while EBITDA margin widened 30 bps YoY to 6.0%. However, profitability remains below pre-Covid levels of ~10– 11%, primarily due to softer realizations and elevated farm-gate costs. Recently, the US imposed a 50% tariff along with a 5.77% countervailing duty on Indian exports. This development poses a major headwind for India’s export sector, while trade negotiations between the two countries are still underway. Apex has been actively diversifying its market presence, helping mitigate risks from a high US dependency amid tariff challenges. The contribution of non-US markets to total sales has risen to ~45%, up from ~24% over the past seven years.OutlookExpect revenue/EBITDA to grow at 13%/85%, respectively, over FY25-27E. We value Apex at 17X P/E and recommend BUY rating with a revised target price of Rs. 284.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Apex Frozen Foods - 10092025 - geo

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