Accumulate Apar Industries; target of Rs 5630: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Apar Industries with a target price of Rs 5630 in its research report dated October 26, 2023.

Broker Research

October 29, 2023 / 14:58 IST

Accumulate

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Apar Industries

We revise our FY24/25/26E by 15.8%/2.7%/1.7%, factoring in strong H1FY24 performance and strong cables & conductor’s outlook in domestic & exports market. Apar Industries (APR) reported strong quarterly performance with revenue growth of ~21% YoY and EBITDA margin expansion of 193bps YoY. Demand for premium conductors continues to remain strong in domestic market from TBCB and re-conducting space. During Q2FY24, improved reconducting execution capabilities resulted in higher productivity. Export of cables to US and European markets may witness volume sluggishness in near term owing inventory de-stocking of excess inventories by distributors amid normalizing supply chain, however medium to long term outlook continues to remain strong for overall exports. Cables business likely to continue with its growth momentum, driven by strong growth in elastomeric cables (for renewables, defence etc.) which is up ~40%+ in H1FY24 and focus is on expanding B2C segment by enhancing distribution and geographical reach.

Outlook

We believe APR’s focus towards value added products and strong traction in exports business will continue to drive strong topline & profitability in the long run. The stock is currently trading at PE of 29.1x/26.4x/21.6x FY24/25/26E. We maintain ‘Accumulate’ rating with revised TP of Rs5,630 (Rs5,499 earlier) valuing Conductors/Cables/Speciality Oil segment at 25x/32x/12x Sep25E.

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