Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy Apar Industries; target of Rs 1834: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Apar Industries has recommended buy rating on the stock with a target price of Rs 1834 in its research report dated November 04, 2022.

November 07, 2022 / 08:47 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Apar Industries

Apar Industries (APR) reported a robust quarterly performance driven by healthy exports growth, increasing contribution of premium products, price pass through and volume growth. Conductor segment reported a volume growth of 4% YoY, while it was flat for Speciality oil segment (down 0.5% YoY). Speciality oil segment margins are likely to be impacted in Q3FY23 owing to higher inventory cost and expected to normalize from Q4FY23. On volume front, given the strong conductors volume growth in H1FY23 (up 29% YoY to 66,104MT) management has revised upwards its guidance for conductor volumes from ~1,30,000MT to ~1,40,000MT for FY23. Cables business is likely to clock strong revenues of Rs30bnfor FY23 and thereafter grow at ~25-30%, driven by healthy demand for Low Duty Cables, Elastomeric cables from Railways, defense & renewables and strong exports growth. We believe APR’s focus towards value added products and exports business likely to benefit in long run and aid profitability going forward. We revise upwards our EPS estimates by 18.3%/30% for FY23/24, factoring in increasing contribution from premium products, expanding international footprints, strong outlook for cables business and management focus on profitable growth.

Outlook

The stock is currently trading at PE of 16.2x/13.2x/11.2x FY23/24/25E. We roll forward our TP to FY25E with revised TP of Rs1,834 (Under Review earlier), valuing it at PE of 14x FY25E and assign BUY rating on stock.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Apar Industries - 05-11-2022 - prabhu

Broker Research
first published: Nov 7, 2022 08:47 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347