9 APARINDS share price target reports by brokerages below. See what is analyst's view on APARINDS share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Apar Industries (Apar) reported 13% YoY decline in consolidated revenue to Rs18.4bn on a high base (3QFY19 sales grew by 41% YoY), 10% below our estimate. Domestic market slowdown, credit tightness at utilities/EPCs and payment delays led to decline in sales of Conductors (23% volume & 18% value), Oil (12% volume & 19% value) and Cables (7% value). However, favourable revenue mix, led by increased share of high margin products, led to better profitability. EBITDA/MT of Conductors jumped 50% YoY to Rs12,409 (HEC conductor at 22% of sales), EBITDA/KL of Oil rose 8% QoQ to Rs3,082 (auto lube & industrial oil at 24% of sales) while EBITDA margin of Cables rose 80bps YoY to 10.6%. Gross margin was up 420bps YoY and 190bps QoQ to 24.1%. Consolidated EBITDA grew by 8% YoY to Rs1.2bn while EBITDA margin was up 130bps YoY at 6.7%, above our estimate of 5.6%. Aided by lower tax rate at 27% (versus 41% YoY), PAT rose 6% YoY to Rs367mn, 7% above our estimate of Rs344mn. Capex outlay planned for FY20 is Rs1.7bn (Rs1.1bn incurred in 9MFY20) and will materially reduce to Rs650mn from FY21 onwards. The company believes that domestic demand will get a fillip with incremental TBCB orders (10 LoIs already issued) and revival in credit situation once payment arrears are cleared. We cut our earnings estimates and retain Buy rating on the stock with a revised target price of Rs630 (Rs705 earlier) based on 11x September 2021E EPS.
We revise our estimates taking into consideration the slowdown in various sectorsand credit tightening. Apar currently trades at 10.5x to FY21 EPS. Company beingthe market leader in the key segments with attractive valuations, we reiterate our“BUY” rating for a target price of Rs. 602 representing an upside potential of 19%.
Apar Industries (APR) reported weak set of numbers for 2QFY20. Revenue performance (-3% YoY at Rs18 bn) was impacted due to lower domestic demand, extended monsoon, extreme credit tightness and slowdown in automotive segment. All the segments of the company reported weak revenue performance with Transformers Specialty Oils/Power Telecom Cables were down by 9%/16 YoY and Conductors revenue remained flat. EBITDA margin came in at 6% against 5.8% in 2QFY19. While Interest and Depreciation increased 28%/22%, other income was down 45% YoY. Hence, PBT was down 49% YoY at Rs222 mn. PAT grew by 18% YoY at Rs340 mn mainly on account of lower tax rate due to change in the corporate tax rate. While management remains cautiously positive for 2HFY20, however we believe that the recovery would be gradual. We have cut our earnings estimates by 19.%/20.6% for FY20/21 respectively. The stock is currently trading at 12x/10x for FY20/21E. We maintain Accumulate rating on the stock with revised TP of Rs646.
We remain positive on Apar as it is well placed to capitalise on the uptick in T&D with improved product mix leading to a strong 36% PAT CAGR over FY19–21E. We maintain‘BUY’ with TP of INR698 (11x Q3FY21E EPS). At CMP, the stock trades at 10.5x FY20E/8.7x FY21E EPS.
While Apar’s 1QFY20 results are good, it believes the market conditions are challenging owing to tepid demand and credit crunch (led by delay in receipt of payments even from government entities). Currently, Power and Telecom sectors are negatively impacted, but Railway and Defence sectors continue to see healthy government spending and timely payment. We have marginally tweaked our estimates and retain Buy rating on Apar with a revised target price of Rs785 (Rs800 earlier) based on 13x FY21E EPS.
Strong quarter in challenging environment Apar Industries (Apar) reported strong set of numbers for 1QFY20 with revenue/PAT up 33%/42% YoY to Rs20bn/Rs412 mn (PLe Rs17bn/Rs334 mn). The top-line growth was led by growth across segments that is Conductors/Transformers Specialty Oils/Power Telecom Cables which grew by 61%/8%/24% YoY respectively. EBITDA margin of 6.9% was higher than PLe of 6.6% due to improvement in Cable segment (+370bps YoY). PAT for the quarter grew 42% YoY to Rs0.4 bn (PLe Rs0.3 bn). Going ahead, management indicated of weak demand, mainly in the power sector related segments (Conductor and Transformer Oil) due to delay in payments by state utilities. However, strong capex in Railways and Defence augers well for Cable segment. Improving revenue mix by increasing share of high-margin products in all the three segments in FY20 to improve overall profitability. We have maintained our earnings estimates for FY20/21E. The stock is currently trading at 11.4/9.1x FY20/21E. We maintain our Accumulate rating on the stock with TP of Rs 795.
We revise our estimates taking into consideration the higher copper conductor sales and tone down our margins due to volatility in oil prices. Apar currently trades at 11.2x to FY21E EPS. We reiterate our “BUY” rating for a target price of Rs. 775 valuing the company at 13x to FY21E EPS representing an upside potential of 16%.
Cable segment posted highest-ever quarterly sales (at Rs5.1bn, up 51% YoY) and EBITDA margin (at 13.7%, up 330bps YoY) led by improved product mix. Consolidated EBITDA grew 8% YoY at Rs1.4bn, while PAT grew 9% YoY at Rs437mn, in line with our estimate. Apar aims to improve its revenue mix (increase share of high-margin products) in all the three segments in FY20, which would lead to much higher profitability. We have cut our earnings estimates for FY20/FY21 by 6%/7%, respectively. We retain Buy rating on the stock with a revised target price of Rs800 (from Rs865 earlier) based on 13x FY21E EPS.
The company expects to improve its revenue mix by increasing share of high-margin products in all the three segments in FY20, thus leading to higher profitability. We have raised EPS estimates by 3%/4% for FY20/21E to capture higher revenue growth in FY19. The stock is currently trading at 14/11x FY20/21E. We maintain our Accumulate rating on the stock with revised TP of Rs 795.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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