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

Geojit Financial Services research report on Apex Frozen Foods

Apex 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.

Outlook

Expect 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.

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Apex Frozen Foods - 10092025 - geo