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Last Updated : Sep 18, 2018 03:56 PM IST | Source: Moneycontrol.com

Buy Apar Industries; target of Rs 986: Edelweiss

Edelweiss is bullish on Apar Industries recommended Buy rating on the stock with a target price of Rs 986 in its research report dated May 31, 2018.

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Edelweiss' research report on Apar Industries


Apar Industries’ Q4FY18 consolidated revenue jumped 35% (15% ahead of estimate), led by strong ~53% YoY growth in conductors, ~22% in specialty oils and ~20% in cables. EBITDA grew ~28% YoY (~14% above estimates). PAT growth, however, was flat (14% below estimates) on higher interest expense owing to open-period forex (~INR190mn) and higher blockage of working capital due to GST. With capex of ~INR6.6bn incurred in past five years, Apar is well placed to capitalise on the T&D uptick, along with the product mix tilting in favour of value-added high margin HeC, higher KV oils and e-beam cables.


Outlook


Hence, we estimate PAT CAGR of 32% over FY18-20 & maintain ‘BUY’ with TP of INR 986.


For all recommendations report, click here


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First Published on Jun 12, 2018 02:43 pm
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