Apar Industries scales record highs as board plans to weigh raising funds

Shares of Apar Industries rallied 7 percent to scale a fresh lifetime high of Rs 5,801 on September 26 as the company’s board plans to review on September 28 a proposal to raise funds. In comparison, the S&P BSE Sensex traded flat at 66,002 as of 12:20pm.

So far this year, the stock of this transmission cable manufacturer has rallied 223 percent as against an 8 percent rally in the benchmark Sensex.

Apar Industries is a manufacturer and supplier of conductors, transmission cables, specialty oils, polymers, and lubricants.

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In a recent note, analysts at Yes Securities said that the company has moved up in value chain by offering superior products and increasing its export footprint.

“Apar Industries continues to be a proxy play on the domestic power sector as a huge chunk of its revenues are linked to power infrastructure. The company’s focus on value-added products will help it mitigate the risk from lower-margin business and help gain market share both in India and overseas. We assign a target multiple of 22x FY25E based on strong pipeline and near-term visibility for both conductors and cables in India and global markets,” the brokerage firm said.

Earlier, on September 22, credit rating agency CARE Ratings assigned an ‘A+’ rating on the long-term and short-term bank facilities of Apar, sharing a ‘stable’ outlook.

“The ratings factor in Apar’s established and leadership position in conductors and TSO segments, diversified revenue streams product-wise and geographically, with exports contributing 48.7 percent in FY23, long-standing experience of the promoters and healthy growing order book which stood at Rs 5,356 crore for the conductor division and Rs 930 crore for the cables division as on June 30, 2023,” the agency said.

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