This conductor manufacturer stock is trading near its all-time high price

Power Grid Corporation of India Limited, Adani Group and Mazagon Dock Shipbuilders are among the major clients of the company.

On December 27, Apar Industries Ltd was among the Top Gainers in BSE group ‘A’. The stock was trading near an all-time high. The shares of Apar Industries Ltd surged 4 per cent and closed trading at Rs 1724. The stock opened at Rs 1678.7 and made an intraday high and low of Rs 1736 and Rs 1670.35, respectively. The company has a market capitalisation of Rs 6600 crore. The stock is trading at a PE multiple of 18.71x.    

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. According to FY22, about 38.2 per cent of the revenue comes from exports while 61.8 per cent comes from the domestic market.   

It operates mainly into four segments- conductors, electrical, telecom and elastomer cables, speciality oils and lubricants (auto & industrial). Power Grid Corporation of India Limited, Adani Group and Mazagon Dock Shipbuilders are among the major clients of the company.    

Q2FY23 remained the highest-ever quarter for the company in terms of both revenue and net profit generated. 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. As per the FY22 period ending, the company has an ROE and ROCE of 16.22 per cent and 28.51 per cent, respectively.   

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.