Apar Industries Q3 Review - Decent Quarter Excluding U.S. With Healthy Profit Growth: Prabhudas Lilladher

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..Prabhudas Lilladher Report.We revise our FY24/25/26E earnings per share estimates by 17.6%/6.6%/9.8%, factoring in strong outlook in the conductors segment. Apar Industries Ltd. reported revenue growth of 1.9% YoY, while Ebitda margin expanded by 138 basis points YoY. Although U.S. demand remained sluggish due to inventory de-stocking, enquiry levels are picking up with improvement expected in FY25. On the other hand, strong domestic demand continues to offset weak U.S. sales. Apar stands to benefit from transition from ACSR to AL-59 alloy conductors given better margin profile and higher technology barriers in making AL-59 conductors. Meanwhile, transformer oils will be the main growth driver in specialty oil segment owing to strong electricity demand, healthy order books of global transformer original equipment manufacturers and Apar’s market leading position. Cables business outlook is also healthy with growing demand for elastomeric cables from wind, solar, railway, defence, mining, etc..We believe Apar's focus towards value-added products and strong traction in exports business will continue to drive strong topline and profitability in the long run. The stock is currently trading at a price/earning of 30.1 times /23.4 times FY25/26E. We roll forward to Dec-25 and maintain an ‘Accumulate’ rating with a revised target price of Rs 6,890 (Rs 5,630 earlier) valuing conductors/cables/specialty oil segments at 27 times/33 times/12 times Dec-25E (25 times/32 times/12times Sep-25E earlier) owing to a robust business outlook across segments..L&T Q3 Results Review - Strong Order Pipeline Boosts Growth Outlook: Motilal Oswal.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 Q3 Review - Decent Quarter Excluding U.S. With Healthy Profit Growth: Prabhudas Lilladher

Conductors order book stood at Rs 60.8 billion (domestic Rs 28.9 billion; exports Rs 31.9 billion), with premium products contributing 40.1%.

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