⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
APARINDS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | APARINDS | Market Cap | 38,640 Cr. | Current Price | 9,608 ₹ | High / Low | 11,648 ₹ |
| Stock P/E | 39.4 | Book Value | 1,153 ₹ | Dividend Yield | 0.53 % | ROCE | 33.3 % |
| ROE | 19.8 % | Face Value | 10.0 ₹ | DMA 50 | 9,392 ₹ | DMA 200 | 8,694 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | 0.56 % | PAT Qtr | 226 Cr. | PAT Prev Qtr | 254 Cr. |
| RSI | 49.2 | MACD | 3.16 | Volume | 1,23,626 | Avg Vol 1Wk | 1,36,247 |
| Low price | 4,270 ₹ | High price | 11,648 ₹ | PEG Ratio | 0.77 | Debt to equity | 0.14 |
| 52w Index | 72.4 % | Qtr Profit Var | 28.2 % | EPS | 240 ₹ | Industry PE | 23.3 |
📊 Financials
- Revenue & Profitability: PAT declined from ₹254 Cr. to ₹226 Cr., showing short-term weakness, but EPS at ₹240 remains strong.
- Margins & Returns: ROCE at 33.3% and ROE at 19.8% are excellent, reflecting strong efficiency and profitability.
- Debt & Liquidity: Debt-to-equity ratio of 0.14 indicates low leverage, ensuring financial resilience.
- Cash Flow: Dividend yield of 0.53% provides modest shareholder returns.
💹 Valuation
- P/E Ratio: 39.4 vs Industry PE of 23.3 — trading at a premium valuation.
- P/B Ratio: Current price ₹9,608 vs Book Value ₹1,153 — ~8.3x book value, expensive relative to assets.
- PEG Ratio: 0.77 — indicates fair valuation relative to growth prospects.
- Intrinsic Value: Current price is above fair value, offering limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in power conductors, cables, and specialty oils with strong global presence.
- High ROCE reflects operational excellence and competitive strength.
- Low debt enhances resilience and flexibility in expansion.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹9,200 – ₹9,500, near DMA 50 support.
- Long-Term Holding: Strong fundamentals and industry tailwinds make it a good candidate for long-term holding. Accumulate on dips for sustained growth.
✅ Positive
- Excellent ROCE (33.3%) and ROE (19.8%) highlight superior efficiency.
- Debt-to-equity ratio of 0.14 ensures financial stability.
- FII holdings increased by 0.11% and DII holdings by 0.56%, showing institutional confidence.
⚠️ Limitation
- Valuation multiples (P/E, P/B) suggest overvaluation.
- Dividend yield of 0.53% is modest.
- Quarterly PAT declined (-11%), showing short-term weakness.
📉 Company Negative News
- Sequential PAT decline from ₹254 Cr. to ₹226 Cr.
- Premium valuation compared to industry average PE.
📈 Company Positive News
- Strong EPS of ₹240 reflects robust earnings capacity.
- Institutional holdings increased, showing confidence from both FII and DII investors.
- MACD positive (3.16) indicates bullish technical momentum.
🏭 Industry
- Electrical equipment and specialty oils sector benefits from infrastructure and energy demand.
- Industry PE at 23.3 is lower than company’s valuation, highlighting premium pricing for APARINDS.
🔎 Conclusion
APARINDS demonstrates strong fundamentals with excellent efficiency, low debt, and robust earnings. However, valuations are stretched and short-term profit decline raises caution. Best strategy: accumulate near ₹9,200–₹9,500 and hold for long-term gains, leveraging industry growth and the company’s competitive strength.