1
Please refer to important disclosures at the end of this report
1
1
Apar Industries Limited (Apar) is engaged in the business of manufacture of
conductors, transformer/specialty oils and power/telecom cables. The company
revised the guidelines of EBITDA to `12,000/MT from `10,000/MT. The
company has commenced production at Odisha plant which will add up another
30,000MT to existing capacity of 150,000MT and in the mood to ramp-up
production. The management expects 20% sales growth and double-digit EBITDA
margin in FY18. Apar expects 5% to 6% volume growth in conductors in FY18
with higher traction from HEC conductors as more states are adopting it while
the ticket size per order is also rising. Further, the off take of HEC conductors is
also rising in South East Asia and other export markets. Apar expects HEC
conductors to form 20% of its sales by FY20 compared to 11% in 9MFY17. The
margins are expected to increase in the coming quarters due to power and
elastomeric cables a witnessing demand. Optic fiber cable continues to witness
low demand. The company is going to benefit from various factors like GST roll
out, UDAY Scheme and increased expenditure on transmission and distribution
segment. The company has reduced debt and has been maintaining a healthy
dividend payout of 21.45%. The company has a healthy return on equity of 14%
for the last 5 years. Hence Buy.
BUY
CMP `830
0.6
Reuters Code
APAR.BO
10
BSE Sensex
30,659
Nifty
9,526
Face Value (`)
Capital Goods
Market Cap (` cr)
3,177
52 Week High / Low
849/462
Avg. Daily Volume
8,477
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Apar Industries
Others | Capital Goods
May 18, 2017
2
Apar Industries | Capital Goods
May 18, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a
registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number
INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing
/dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or co-managed public
offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Disclosure of Interest Statement Apar Industries
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)