Please refer to important disclosures at the end of this report
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.
CMP `830
Reuters Code
BSE Sensex
Face Value (`)
Capital Goods
Market Cap (` cr)
52 Week High / Low
Avg. Daily Volume
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Apar Industries
Others | Capital Goods
May 18, 2017
Apar Industries | Capital Goods
May 18, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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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)