Rs 302 to Rs 3,660: This power stock turned into a multibagger in three years; likely to hit Rs 7,000 in a year

Shares of multibagger Apar Industries Ltd have delivered over 1,100% returns to investors in the last three years. The stock of the power equipment major, which closed at Rs 302.65 on August 6, 2020, ended at Rs 3660.35 in the previous session (August 4, 2023), delivering 1121% returns during the period. In comparison, Sensex has risen 74.38% in three years.

On Friday, Apar Industries stock zoomed 0.30% to Rs 3660.35 on BSE. Earlier, the stock opened higher at Rs 3719.95, also the intraday high against the previous close of Rs 3649.45 on BSE.

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The firm reported a 61 percent rise in June quarter net profit on July 28, 2023. The firm logged a 22.25% rise in total income to Rs 3786 crore in the June 2023 quarter against Rs 3097 crore in the June 2022 quarter. Net profit zoomed 61.22% to Rs 197.43 crore in Q1 against Rs 122.46 crore in the June 2022 quarter. Earnings per share zoomed 61.22% to Rs 51.59 in Q1 against Rs 32 in the June quarter of 2022.

After the earnings last month, analysts and brokerages expect the stock to reach the target of up to Rs 7,000 in a year.

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Vaibhav Kaushik, Research Analyst, GCL Broking said, “The stock is in a strong upmove but right now it is overbought. So, buying on dips is advisable. One can keep a stop loss of Rs 2900 for the target of Rs 4000.”

Ravi Singh, Vice President and Head of Research, Share India said, “Apar Industries is looking strong on daily and weekly chart pattern with most of the momentum indicators in buy zone. However, the stock may witness some momentarily correction but may bounce back from the lower levels. The stock may touch the level of Rs 3800 from medium term perspective.”

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Manoj Dalmia, CEO of Proficient Equities said, “Apar Industries is a leading manufacturing conductors and 3rd largest global manufacturer of transformer oil. The company mainly focuses on growing exports and premium products. The sales have shown a 20% CAGR growth in the last 5 years. Moreover, a profit growth at 35% CAGR in the last 5 years was recorded. Long-term prospects are great as the stock has performed unexpectedly well for the last 4 quarters. Investors can track and buy at dips. One can expect a long-term target of Rs 7,000 from current levels.”

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Abhijeet from Tips2trades said “Apar Industries is slightly bullish on the Daily charts with good support at Rs 3545. A daily close above the resistance of Rs 3750 could lead to a target of Rs 4000 in the near term."

The share hit an all-time high of Rs 3966.70 on August 1, 2023 backed by strong Q1 earnings. It has gained 204.60% in a year and risen 100.61% this year. Total 1868 shares of the firm changed hands amounting to a turnover of Rs 68.56 lakh on August 4. Market cap of the firm climbed to Rs 14,007 crore. The stock hit a 52-week low of Rs 1150 on August 12, 2022.

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In terms of technicals, the relative strength index (RSI) of the stock stands at 56, signaling it's trading neither in the overbought nor in the oversold zone. Apar Industries shares have a beta of 0.9, indicating low volatility in a year. Apar Industries shares stand higher than the 20 day, 50 day, 100 day and 200 day but lower than the 5 day and 10 day moving averages.

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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