Apar Industries stock opened lower at Rs 3035 on BSE in the current session. It closed at Rs 2601.15, 14.78% lower against the previous close on BSE Shares of power equipment major Apar Industries Ltd slipped 24% from their record high today on profit-booking a day after the firm announced its Q4 and annual earnings for the March 2023 quarter. Apar Industries stock fell 24.05% to Rs 2503.60 on BSE against an all-time high of Rs 3296.40 hit on May 8, 2023. From the previous close of Rs 3052.40, the stock slipped 17.98% intraday to Rs 2503.6 on BSE today. The stock opened lower at Rs 3035 on BSE in the current session. It closed at Rs 2601.15, 14.78% lower against the previous close on BSE.
In terms of technicals, the relative strength index (RSI) of the stock stands at 73.1, signaling it's trading in the overbought territory. Apar Industries shares have a beta of 0.9, indicating low volatility in a year. Apar Industries shares are trading higher than the 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.
The stock has risen 311.38% in one year and gained 45.06% since the beginning of this year. The share has lost 4.54% in a month. Total 0.60 lakh shares of the firm changed hands amounting to a turnover of Rs 16.31 crore on BSE today. Market cap of the firm slipped to Rs 9954.24 crore today against Rs 11,710 crore in the previous session.
The firm reported a 35.4% rise in sales to Rs 4,056.53 crore in the March 2023 quarter against Rs 3003.90 crore in the March 2022 quarter. Net profit zoomed 194% to Rs 242.73 crore in Q4 against Rs 82.61 crore in the March 2022 quarter. Earnings per share rose to Rs 63.43 in Q4 against Rs 21.49 in the March quarter of 2022.
The company recommended dividend for the financial year 2022-23 at Rs 40 per share aggregating to Rs 153.07 crore on 38,268,619 Equity shares of Rs 10/- each fully paid.
YES Securities has assigned a price target of Rs 3451 against the current market price of Rs 3056. The target price amounts to an upside of 13% over the CMP.
"We like the company given its global leadership position, robust prospects of valueadded products, strong positioning across product categories and consistent dividend pay-out. At CMP, the stock is trading at a P/E of 13.9x/10.6x and EV/EBITDA of 7.7x/5.9x for FY24E/25E. We upgrade our FY24/25 earnings estimates factoring in a) higher share of exports and b) rising premiumisation within the domestic market. We maintain our ADD rating with an upward-revised target price of Rs 3,451,” said the brokerage.
Amit Anwani – Research Analyst at Prabhudas Lilladher said, “The firm posted robust quarterly performance and margin expansion was led by strong exports. Consolidated sales grew 35.7% YoY to Rs 40.9 bn (PL estimate of Rs 46.3 bn and consensus estimate of Rs 399 bn), comprising Conductors/ Speciality Oil/ Cables ~52%/~29%/~23% of total sales. Conductors segment reported a growth of 41.1% YoY to Rs 21.2 bn, owing to strong volume growth (up 46% YoY) and strong growth in exports (up 81% YoY). Cables reported a 38.1% YoY growth to Rs 9.4 bn owing to strong growth in exports and elastromeric products. Speciality oil segment revenue grew 28% YoY to Rs 11.8 bn, driven by volume growth and higher base oil price. Gross margin expanded by 488 bps YoY to 27.1%,(PL estimates of 24.9%) aided by better product mix and geography mix. At the current market price, the stock is currently trading at 22x/19.5x FY24/25E.”
Apar Industries Limited is a manufacturer and supplier of conductors, a variety of cables, specialty oils, polymers and lubricants. The company’s segments include conductor, transformer & specialities oils and power/telecom cables. It provides diverse fields of electrical and metallurgical engineering offering value-added products and services in power transmission conductors, petroleum specialty oils, and power & telecom cables.