Shares of Apar Industries Ltd have delivered multibagger returns in the long term. Apar Industries shares climbed 516%, 1176% and 2264.60% in two, three and five years, respectively. The multibagger stock, which closed at Rs 795.75 on January 14, 2022 was trading at Rs 10,125 in the afternoon session today. Of late, Apar Industries has seen correction, falling up to 4.35% in three months.
In the current session, the Apar Industries stock slipped 2.27% to Rs 10,084 against the previous close of Rs 10,318.15. Total 2,531 shares of the firm changed hands amounting to a turnover of Rs 2.59 crore on BSE. Market cap of the firm fell to Rs 40,505 crore.
The stock has a beta of 0.8, indicating low volatility in a year. Brokerage Nuvama has initiated coverage on the stock with a price target of Rs 12,700. Referring to the stock as an outperformer, Nuvama said Apar is a favoured play on India’s T&D capex super-cycle that would spur demand for high value-added/efficient conductors. "Re-conductoring and exports pickup can further charge up growth (~18%+ EPS CAGR over FY24–27E at ~23% RoE). Initiate at ‘BUY’ with an SotP-based TP of INR12,700 on 38x blended PE," said the brokerage.
It mentioned global shocks, high competitive intensity, adverse working capital management and slowdown in T&D ordering as key risks for its assumptions.
Global brokerage Nomura has a target price of Rs 11,700. It is a proxy play on grid electrification as it specializes in highly technology-oriented products (HTLS and HeC conductors, 800kV transformer oil, and E-beam cables), said Nomura.
The brokerage expects an earnings CAGR of 17% over FY24-27F.
Nirmal Bang has a hold rating on the stock with a price target of Rs 9945.
In terms of technicals, the relative strength index (RSI) of Apar Industries stands at 49.5, signaling it's trading neither in the overbought nor in the oversold territory. Shares of Apar Industries are trading lower than the 5 day, 10 day, 20 day, 30 day but higher than the 50 day, 100 day, 150 day and 200 day moving averages.
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.