Apar Industries Q1 Results Review - Exports To Drive Both Growth, Margins In Near Term: Nirmal Bang

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Apar Industries Ltd.'s Ebitda margin was above our estimate by 71 basis points on account of better-than expected Ebitda growth in transformer and specialty oils business. The slowdown in the U.S. and Europe led to a drop in exports in the conductors and cables segments. But, this was offset by strong domestic demand for both. Apar has intensified its focus on new capacity addition to the grid, spurred by the Solar Power segment.Overall, domestic revenues (63% revenue contribution in Q1 FY25 versus 46.7% YoY) grew by 43.4% YoY, while exports (37% revenue contribution in Q1 FY25 versus 53.3% YoY) de-grew by 25.9% YoY. The management expects recovery in exports in H2 FY25.While we remain structurally positive about Apar’s long term business prospects, the stock has run up ~55% YTDCY24. We maintain Accumulate with a revised target price of Rs 8,700. This implies a PE of 29 times on June-26E EPS and it is at ~20% premium to the two-year historical average PE multiple on one-year forward basis. We believe that the multiple is fair and adequately captures:~19% EPS CAGR over FY24-FY26E, andpost-tax RoCE of ~32% in FY26E. .We believe it is a long-term compounder and should be accumulated at every dip..Click on the attachment to read the full report:.D2C Brands Like FableStreet, Snitch Challenge The Old Guard With Style, Price And GenZ Connect.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Apar Industries Q1 Results Review - Exports To Drive Both Growth, Margins In Near Term: Nirmal Bang

The brokerage believes that the stock is a long-term compounder and should be accumulated at every dip.

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Apar Industries Q1 Results Review - Exports To Drive Both Growth, Margins In Near Term: Nirmal Bang

The brokerage believes that the stock is a long-term compounder and should be accumulated at every dip.

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