Accumulate Apar Industries; target of Rs 6890: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Apar Industries with a target price of Rs 6890 in its research report dated January 31, 2024.

Broker Research

February 03, 2024 / 14:39 IST

Accumulate

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Apar Industries

We revise our FY24/25/26E EPS estimates by 17.6%/6.6%/9.8%, factoring in strong outlook in the Conductors segment. Apar Industries (APR) reported revenue growth of 1.9% YoY, while EBITDA margin expanded by 138bps YoY. Although US demand remained sluggish due to inventory de-stocking, enquiry levels are picking up with improvement expected in FY25. On the other hand, strong domestic demand continues to offset weak US sales. APR stands to benefit from transition from ACSR to AL-59 alloy conductors given better margin profile and higher technology barriers in making AL-59 conductors. Meanwhile, transformer oils will be the main growth driver in Specialty Oil segment owing to strong electricity demand, healthy order books of global transformer OEMs and APR’s market leading position. Cables business outlook is also healthy with growing demand for elastomeric cables from wind, solar, railway, defence, mining, etc. 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.

Outlook

The stock is currently trading at a P/E of 30.1x/23.4x FY25/26E. We roll forward to Dec-25 and maintain an ‘Accumulate’ rating with a revised TP of Rs6,890 (Rs5,630 earlier) valuing Conductors/Cables/Specialty Oil segments at 27x/33x/12x Dec-25E (25x/32x/12x Sep-25E earlier) owing to a robust business outlook across segments.

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