Apar Industries Ltd. share price target

We revise our EPS estimates by +3.1%/+7.6% for FY27E/FY28E factoring in improving premium product mix in conductors, healthy demand visibility across conductors and cables, improving US traction supported by data centre and grid modernization investments, and higher growth capex across key businesses. Apar Industries (APR) reported 26.7% YoY revenue growth while EBITDA margin contracted by 93bps YoY to 7.9% (adj for one-offs) likely due to elevated freight and insurance costs, higher specialty polymer prices and supply chain disruptions arising from the Middle East conflict. Conductors' business continued to benefit from renewable evacuation,...

Management expects cables revenue to grow by 20%+ YoY with EBITDA margin ambition of ~11% in medium term We interacted with the management of Apar Industries (APR) to assess the potential impact of the ongoing US-Iran geopolitical tensions, domestic demand environment and the company's overall business outlook. The management indicated that the situation remains fluid, though the company's direct exposure to the Middle East is limited (~67% of total revenue) and operations remain unaffected given adequate raw material inventory and incoming supplies although if situation worsen it could...

A trifecta of growth drivers – electricity demand, transmission and renewables – is driving demand for conductors, cables and transformer oil.

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Domestic/export revenue mix stood at 68%/32% (vs 63%/37% in Q1FY25). We revise our FY26/27E EPS estimates by +11.0%/+2.7%, factoring in strong domestic macro tailwinds and further recovery in the demand from the USA and downgrade our rating from Accumulate' to Hold' due to sharp run up in the stock price. Apar Industries (APR) reported 27.3% YoY revenue growth while EBITDA margin declined 53bps YoY to 8.9%. The strong topline...

Apar announced a capex of Rs13.0bn, to be invested in Conductors (Rs2.0bn), Cables (Rs8.0bn), Specialty Oils (Rs2.0bn) in the next 12-15 months. We revise our FY26/27E EPS estimates by +1.4%/+0.3%, factoring in further recovery in the demand from the USA. Apar Industries (APR) reported 16.9% YoY revenue growth while EBITDA margin declined 78bps YoY to 8.8%. Domestic demand continued to show strength while recovery in the USA further pushed the top line. The company announced a Rs13bn capex to...

Conductor segment reported an EBITDA loss of Rs20mn, on account of legacy fixed price orders impacted owing to steep rise in raw material/freight cost. Apar Industries (APR) reported decent set of numbers led by strong recovery in transformer oil segment and lower interest cost. With economic activity witnessing a V-shape recovery, domestic revenues grew 12% YoY while export revenues de-grew 2.8% YoY. Lower interest expense led to boost in profitability. Conductors segment reported an EBITDA loss of Rs20mn owing...

in transformer oil segment. De-growth in consolidated revenue by 6.7% YoY impacted due to supply chain challenges amidst pandemic in the domestic market (down, 6% YoY) while exports market (up, 7% YoY) is gradually returning to normalcy. Lower RM cost and cost rationalisation measures led to boost in profitability. Conductors segment declined by 28% YoY owing to supply side constraint, subdued demand for conventional conductors and HEC. Specialty Oil revenue grew by 17.7% YoY driven by 30% growth in exports across all its product range. High competitive pricing and subdued...

During the quarter, the Company received new orders worth ~Rs.3.2bn in Conductor segment. New order inflows were significantly lower yoy with delays in awarding new tender due to...