APARINDS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

Let’s unpack Apar Industries Ltd. (APARINDS) — a rising industrial powerhouse in cables, conductors, specialty oils, and polymers. The company shows exceptional operating strength and attractive growth metrics, but trades near rich valuation zones.

💰 Core Financials Breakdown

Profitability

EPS: ₹220 — among the strongest in industrials, supporting earnings quality.

ROE: 19.6% & ROCE: 32.1% — excellent returns on equity and capital employed, showcasing efficiency and profitability.

PAT Qtr growth: +29.8% — strong momentum in bottom line despite capex-heavy industry.

Leverage & Distribution

Debt-to-Equity: 0.13 — prudently managed debt; comfortable liquidity.

Dividend Yield: 0.53% — modest yield, suggesting focus on reinvestment.

📊 Valuation Metrics

Indicator Value Insight

P/E Ratio 44.1 Slightly premium to Industry PE: 42.0

P/B Ratio ~8.64 Fair considering Book Value ₹1,121

PEG Ratio 0.91 ✅ In line with expected earnings growth

Intrinsic Value ❌ Slightly under CMP Valuation may be stretched short-term

🧠 Business Model & Strategic Edge

Diversified play across power transmission, cables, lubricants, and polymers — insulated from sector-specific risks.

Backed by demand from infrastructure, EVs, power grid modernization, and industrial automation.

High operating leverage with export footprint improving margin mix.

Institutional moves

FII Holding ↓ 0.81% — some foreign profit booking.

DII Holding ↑ 1.16% — bullish domestic outlook.

📈 Technical Indicators

RSI: 66.7 — approaching overbought; momentum strong.

MACD: +265 — clear bullish crossover with high conviction.

CMP of ₹9,682 trades well above DMA 50 (₹8,325) & DMA 200 (₹7,813) — technically robust.

Stock is ~18% off 52W high ₹11,797 — potential for reclaiming highs if momentum sustains.

🎯 Entry Zone & Investment Thesis

Suggested Entry Zone: ₹8,600–₹9,000 — ideal on market dips or cooling RSI.

Long-Term Holding Rationale

Attractive for investors targeting consistent earnings in industrial and infra-linked businesses.

Focus on scalability, export penetration, and product innovation will be key value drivers.

Watch margins, order book expansion, and raw material cost trends.

Would you like a quick snapshot comparing APAR with peers like Polycab, KEI Industries, or Sterlite Power to identify sector outperformers and rerating potential? I can chart that out for you in seconds 📊✨.

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