Rs 294 to Rs 3,000: This power stock turned into a multibagger in three years, hit record high today

Shares of Apar Industries Ltd have rallied 929% in the last three years. The mid cap stock, which closed at Rs 294.5 on May 4, 2020 rose to a record high of Rs 3031 on the BSE today (May 4, 2023). An amount of Rs 1 lakh invested in the shares of Apar Industries three years ago would have turned into Rs 10.29 lakh today. In comparison, Sensex has risen 93.93 per cent during the period. The stock rose 2.06% to Rs 3031 on BSE today. It has gained 10.18% in the last five sessions. The stock opened marginally higher at Rs 3029.95 today against the previous close of Rs 2969.90 on BSE.

In terms of technicals, the relative strength index (RSI) of the stock stands at 71.6, signaling it's strongly overbought. Apar Industries shares have a beta of 0.9, indicating low volatility in a year. Apar Industries shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has risen 361% in one year and gained 67% since the beginning of this year. The share has climbed 15.4% in a month. Total 3132 shares of the firm changed hands amounting to a turnover of Rs 93.82 lakh on BSE. Market cap of the firm stood at Rs 11,430 crore on BSE.

13 promoters held 60.64 per cent stake in the firm and 62,713 public shareholders owned 39.36 per cent for the quarter ended Match 2023. Of these, 60207 public shareholders held 35.34 lakh shares or 9.24% stake with capital up to Rs 2 lakh. Only 17 shareholders with 2.47% stake held capital above Rs 2 lakh for the quarter ended March 2023. 126 foreign portfolio investors (FPIs) held 6.22% in Q4 of the last fiscal.

Apar Industries has outperformed its peers in terms of stock market returns in the last three years. Shares of ABB Ltd have risen 314.24% and stock of BHEL has gained 265.49% in three years. Stock of another competitor HPL Electric has risen 265.49% during the period.

Financial Performance

The stellar rally in the Apar Industries stock reflects the financial performance of the firm in the last three years. In the December quarter, the firm reported a 209% rise in net profit to Rs 169.90 crore against Rs 54.96 crore in the corresponding quarter of previous fiscal. Sales rose 76.88% to Rs 3942 crore in the December quarter against Rs 2228.83 crore in the December quarter of 2021.

Operating profit rose 196.15% to Rs 346.67 crore for the quarter ended December against Rs 117.06 crore in the corresponding quarter of the previous fiscal.

On a quarter-on-quarter basis, the firm reported a 65.55% rise in net profit from Rs 102.23 crore in the September 2022 quarter. Sales climbed 21.87% from Rs 3234 crore in Q2 of the last fiscal.

On an annual basis, net profit zoomed 60% to Rs 256.73 crore for the fiscal ended March 2022 against Rs 160.50 crore for the fiscal ended March 2021. For the fiscal ended 2020, net profit stood at Rs 135.15 crore.

Sales climbed 45.91% to Rs 9319 crore in the March 2022 fiscal against Rs 6388 crore for the fiscal ended March 2021. For the fiscal ended 2020, sales stood at Rs 7425 crore.

About the Company

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.

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