This electrical equipment manufacturer was trending today!

The stock surged 4% and closed at Rs 1724

On December 27, the market traded in the green. Both Sensex and NIFTY50 were up more than 0.6%. The S&P BSE Sensex closed trading at 60,927, while NIFTY50 closed at 18,132. Regarding sectoral performance, Metal was the top gainer, while FMCG and Healthcare were the top losers. Talking about stock-specific action, Apar Industries Ltd was among the top gainers in BSE group ‘A’. The stock was trading near an all-time high.

The shares of Apar Industries Ltd surged 4% and closed trading at Rs 1724. The stock opened at Rs 1678.7 and made an intraday high and low of Rs 1736 and Rs 1670.35, respectively. The company has a market capitalisation of Rs 6600 crore. The stock is trading at a PE multiple of 18.71x.

Apar Industries Ltd is a highly-trusted manufacturer and supplier of conductors, a wide variety of cables, speciality oils, polymers and lubricants. Established in 1958, it exports to over 140 countries, serving more than 10 industries. According to FY22, about 38.2% of the revenue comes from exports while 61.8% comes from the domestic market. 

It operates mainly into four segments- conductors, electrical, telecom and elastomer cables, speciality oils and lubricants (auto & industrial). Power Grid Corporation of India Limited, Adani Group and Mazagon Dock Shipbuilders are among the major clients of the company.

Q2FY23 remained the highest-ever quarter for the company in terms of both revenue and net profit generated. For Q2FY23, the company’s consolidated revenue jumped by 42% to Rs 3215 crore from Rs 2262 crore, reported in Q2FY22. While, for the same quarter, consolidated net profit YoY improved by more than 80%. As per the FY22 period ending, the company has an ROE and ROCE of 16.22% and 28.51%, respectively.

About the shareholding pattern, 60.64% of the company’s stake is owned by the promoters, 6.3% by FIIs, 16.76% by DIIs and the rest 16.3% by non-institutional investors.