Shares of Indias largest conductor manufacturing company surged 6 per cent today!

For the latest September quarter, the company's revenue increased by more than 80 per cent.

On December 1, the shares of Apar Industries Ltd surged 6 per cent. The stock opened at Rs 1485.8 and made an intraday high and low of Rs 1648.4 and Rs 1480, respectively.   

Apar Industries Ltd is a highly-trusted manufacturer and supplier of conductors, a wide variety of cables, speciality oils, polymers, and lubricants. Established in 1958, it exports to over 140 countries, serving more than 10 industries. Power Grid Corporation of India Limited, Adani Group, and Mazagon Dock Shipbuilders are among the major clients of the company.  

On November 4, the company announced its September Quarterly Results. For Q2FY23, the company’s consolidated revenue jumped by 42 per cent to Rs 3215 crore from Rs 2262 crore, reported in Q2FY22. While, for the same quarter, consolidated net profit YoY improved by more than 80 per cent.  

About the shareholding pattern, 60.64 per cent of the company’s stake is owned by the promoters, 6.3 per cent by FIIs, 16.76 per cent by DIIs, and the rest 16.3 per cent by non-institutional investors.   

The company has a market capitalisation of Rs 5958 crore and is trading at a PE multiple of 16.55x.  

Following are the trigger points for the stock:  

• India is poised to add 27,000 circuit kilometres (already added 6,500) of interstate power transmission network by 2024. This helps the company’s demand to grow.  
• ‘China Plus One’ supply chain diversification strategy is creating rapid opportunities for Indian exporters and the Indian government’s focus on the purchase of military hardware will help to improve the demand for the company.  
• Renewable energy installation in railways for both locomotives and coaches will help to increase the demand for elastomeric cables.  
• With the fourth new e-beam machine, the company is likely to start manufacturing windmill cables in Q3FY23.  
• In the next three years, the management expects to increase building wire revenue from Rs 200 crore to Rs 500 crore