Listed below is one of the multi-bagger stocks that started manufacturing power transmission cables and further expanded to three broad business segments, Conductors, Transformer and specialty oils (TSO), and Power/telecom Cables. The stock has delivered multi-bagger returns of 3,361 percent to the shareholders of the company in just 5 years.
Stock Performance
On November 18, 2024, the shares of APAR Industries Limited traded at Rs. 8,772.30 exhibiting a gain of around 3,361 percent compared to the current price. For example, if someone had invested Rs. 1 lakh into the company’s stock 5 years ago, it would have turned to ~Rs. 43.61 Lakhs.
Company Overview
APAR Industries Limited is a prominent Indian conglomerate specializing in electrical and metallurgical engineering. It is a leading global manufacturer of power transmission conductors and transformer oils, with a diverse product portfolio that includes specialty cables and lubricants.
Orderbook
As of Q2 FY25, APAR Industries has reported a pending order book of approximately Rs.6,615 crores. This reflects a strong demand across its business verticals, with new order inflows during the quarter amounting to Rs. 2,234 crores. The company continues to experience significant growth in its domestic market, contributing positively to its overall performance.
Strategic Developments
Apar Industries Limited is strategically transitioning from ACSR to premium AL-59 conductors, while actively pursuing reconductoring opportunities in existing infrastructure. The company is developing specialized synthetic transformer oils with biodegradable properties, expanding capacity across segments, and maintaining strong engagement with regulatory bodies for future growth initiatives.
Apar Industries is diversifying into energy storage solutions to complement renewable energy growth, while simultaneously developing specialized products for data center cooling applications under the testing phase.
Also read….
Global Footprints
APAR Industries shows global outreach with exports to over 140 countries, accounting for 45.2% of revenue while maintaining 54.8% in domestic sales during FY 2023-24. The company’s ten manufacturing facilities, including nine in India and one in Sharjah, UAE, feature advanced testing centers, emphasizing quality and innovation through robust R&D initiatives.
Recent quarter results and ratios
Apar Industries Limited’s revenue has increased from Rs. 14,336 crore in Q2 FY24 to Rs. 16,153 crore in Q2 FY25, which has grown by 12.67 percent YOY. The net profit of Kalpataru Projects International Limited has also grown by 29.31 percent, from Rs. 638 crore in Q2 FY24 to Rs. 825 crore in Q2 FY25.
Apar Industries Limited’s revenue and net profit have grown at a CAGR of 21.45 percent and 57.23%, respectively, over the last four years.
In terms of return ratios, the company’s ROCE and ROE should be 44% and 26.8%, respectively. The debt-to-equity ratio of the company is to be 0.13x, which shows the company is almost debt-free. Apar Industries Limited’s EPS is to be Rs. 212.
Business Segment Performance
The company showed strong growth across all segments in Q2 FY’25, with Cable leading at 39% growth, followed by Conductor at 18.3% and Oil at 12.1%. While the Cable segment showed strong domestic demand with 77.8% growth, its EBITDA margins were affected by competition. The Oil business improved operational efficiency with a 34.1% increase in EBITDA per KL.
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
