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Last Updated : Feb 10, 2017 02:21 PM IST | Source: Moneycontrol.com

Buy Apar Industries; target of Rs 792: Centrum

Centrum is bullish on Apar Industries has recommended buy rating on the stock with a target price of Rs 792 in its research report dated February 03, 2017.

 
 
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Centrum's research report on Apar Industries


Despite a steady contribution in export sales between 30-40%, adjusted EBITDA/MT jumped to near historical highs of Rs 13,912(+94.6% YoY and +27.1% QoQ). Management attributed the margin expansion to execution of high margin orders and postponement of low margin orders to FY18. We upwardly revise our FY18E and introduce FY19E at Rs 11,000/MT which compares with the average Rs 10,537 earned over FY13-16, and is achievable.


Outlook


We maintain our Buy rating on Apar Industries with a revised TP of Rs 792. The company’s Q3FY17 earnings squarely beat estimates, with Conductor margins rising surprisingly near historical highs and ahead of street and management’s expectations. EBITDA for Transformer & Speciality oils (T&S) was weak on the back of inventory losses, a drop in export sales and lower domestic sales of the high-margin automobile and industrial oil (post demonetisation).

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First Published on Feb 10, 2017 02:21 pm
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