APARINDS - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.3

Here’s a comprehensive analysis of Apar Industries Ltd (APARINDS)

🧾 Core Financials

Profitability & Growth

PAT rose from ₹244 Cr to ₹258 Cr — a healthy 31.9% YoY growth, showing strong earnings momentum.

EPS: ₹213 — robust, supporting valuation.

ROE: 19.9% and ROCE: 32.7% — excellent return metrics, indicating efficient capital deployment and strong operational performance.

Debt & Liquidity

Debt-to-equity: 0.13 — very low leverage, a major strength for long-term sustainability.

Dividend Yield: 0.57% — modest, but adds shareholder value.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 42.0 41.2 Fairly valued

P/B Ratio ~8.39 ~4.5 Premium to book value

PEG Ratio 0.82 ~1 Undervalued relative to growth

Intrinsic Value ~₹8,000–₹8,500 — Slightly undervalued

PEG < 1 and strong ROE/ROCE suggest valuation is attractive, especially for growth-oriented investors.

🏢 Business Model & Competitive Edge

Core Operations: Manufacturing of conductors, cables, specialty oils, and polymers — critical for power transmission, telecom, and automotive sectors.

Strengths

Diversified industrial exposure with global footprint.

Operational efficiency and strong margin profile.

Rising DII interest (+1.16%) reflects domestic institutional confidence.

Risks

FII outflows (-0.81%) may reflect valuation caution or global risk aversion.

RSI at 66.6 and MACD at 84.7 suggest near-term overbought conditions.

📉 Technical & Entry Zone

Current Price: ₹8,960

DMA 50/200: ₹8,365 / ₹7,990 — trading above key averages.

RSI: 66.6 — approaching overbought.

MACD: 84.7 — bullish momentum.

Suggested Entry Zone: ₹8,000–₹8,400 range, ideally near DMA 200 or intrinsic value.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for exposure to infrastructure and industrial growth.

Good for fresh entry on dips below ₹8,400.

Ideal for long-term only if

PAT growth sustains above 20% CAGR.

ROE remains above 18% and PEG stays below 1.

Would you like a peer comparison with Polycab or a breakdown of APAR’s export revenue and sector-wise contribution?

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