Shares of midcap firm Apar Industries have given exceptional returns to their investors, jumping over 11 times since COVID despite uncertain market conditions on the back of multiple macro headwinds like rising rates, sticky inflation, etc.
The stock skyrocketed as much as 1034 percent from its COVID low of ₹239.20, hit in March 2020, to currently trade around ₹2,714.30 (as on May 18, 2023).
It has also given multibagger returns in the last 1 year, up over 355 percent while it has jumped 51 percent just in 2023 YTD.
In 2023 YTD, the stock has given positive returns in 3 of the 5 months so far. While it has lost around 3.5 percent in May so far, the stock has given robust returns in 3 straight months of Feb, March and April. The stock surged 36 percent in Feb, 9 percent in March and 12 percent in April. However, in Jan, the stock was down 6 percent.
It hit its 52-week high of ₹3,296.40 earlier this month, on May 8, 2023, and a 52-week low of ₹591.5 on May 19, 2022. The stock is currently up 359 percent from its 52-week low.
Started in 1958, Apar Industries is a manufacturer and supplier of conductors, transmission cables, specialty oils, polymers and lubricants. It is the largest aluminum and alloy conductor manufacturer in the world, third-largest transformer oil manufacturer in the world and manufacturer of the widest range of cables in India.
In the March quarter, the company posted a 100 percent surge in its net profit at ₹247.23 crore against ₹123.30 crore in the year-ago period. Meanwhile, its revenue from operations came in at ₹4,088.58 crore in the quarter under review, up 36 percent from ₹3,012.45 crore in the year-ago period on the back of growth across all divisions and exports of cable and conductor businesses.
Its EBITDA margin expanded to 10.7 percent in the quarter ended March 2023 from 6.1 percent in the corresponding period last year.
On the back of the strong earnings and recent jump in the stock, brokerage house Prabhudas Lilladher upgraded the stock to 'buy' from 'under review' earlier with a target price of ₹3,832, indicating an upside potential of 41 percent.
“We believe, APR’s (Apar Industries) focus towards value-added products and strong traction in exports business will drive strong topline and profitability in the long run,” it said.
PL also revised the firm's FY25 estimates by 11.2 percent, given a strong export outlook with further penetration in high-growth markets along with a robust cable segment outlook amid high elastomeric cables contribution.