Prabhudas Lilladher's research report on Apar Industries
We revise our FY25E estimates by 11.2%, given strong exports outlook with further penetration in high growth markets along with robust cable segment outlook amid high elastomeric cables contribution. Apar Industries (APR) reported strong quarterly performance with revenue growth of ~36% YoY and EBITDA margin expansion of 461bps YoY. Conductor revenue (up 41% YoY) was driven by demand for conventional products from export markets and domestic demand for premium product. Cables business will likely continue its growth momentum, with growth in elastromeric cables (driven by renewables, railways and Defence) and focus on Anushakti brand. Exports outlook for conductors and cables segment continues to remain strong with increasing spends on power infrastructure in geographies like USA, Australia, Europe etc.
Outlook
We believe, APR’s focus towards value added products and strong traction in exports business will drive strong topline and profitability in the long run. The stock is currently trading at PE of 20.9x/16.6x FY24/25E. We recommend ‘Buy’ rating on stock with SoTP of Rs3,832 (Under Review earlier).
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