APARINDS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | APARINDS | Market Cap | 39,217 Cr. | Current Price | 9,756 ₹ | High / Low | 9,905 ₹ |
| Stock P/E | 40.0 | Book Value | 1,153 ₹ | Dividend Yield | 0.52 % | ROCE | 33.3 % |
| ROE | 19.8 % | Face Value | 10.0 ₹ | DMA 50 | 8,194 ₹ | DMA 200 | 8,265 ₹ |
| Chg in FII Hold | 0.11 % | Chg in DII Hold | 0.56 % | PAT Qtr | 226 Cr. | PAT Prev Qtr | 254 Cr. |
| RSI | 76.6 | MACD | 21.2 | Volume | 10,37,064 | Avg Vol 1Wk | 2,66,055 |
| Low price | 4,270 ₹ | High price | 9,905 ₹ | PEG Ratio | 0.78 | Debt to equity | 0.14 |
| 52w Index | 97.4 % | Qtr Profit Var | 28.2 % | EPS | 240 ₹ | Industry PE | 24.3 |
📊 Financials: APARINDS demonstrates strong fundamentals with ROCE at 33.3% and ROE at 19.8%, reflecting excellent capital efficiency. Quarterly PAT declined from ₹254 Cr. to ₹226 Cr., showing some earnings pressure but overall profitability remains solid. Debt-to-equity at 0.14 highlights low leverage. EPS of ₹240 is robust relative to its market cap of ₹39,217 Cr.
💹 Valuation: The stock trades at a P/E of 40.0, above the industry average of 24.3, suggesting overvaluation. P/B ratio is ~8.46 (9756/1153), which is expensive compared to peers. PEG ratio of 0.78 indicates valuations are reasonable relative to growth. Dividend yield of 0.52% provides modest income support.
🏢 Business Model & Competitive Advantage: APARINDS operates in cables, conductors, and specialty oils, benefiting from infrastructure expansion and power sector demand. Its competitive advantage lies in diversified product offerings, strong export presence, and consistent profitability. High return metrics and low debt strengthen its long-term outlook.
📈 Entry Zone: Technicals show RSI at 76.6 (overbought) and MACD positive, with price trading above DMA 50 & 200. Accumulation may be considered near ₹8,800–9,200 for long-term investors. Current valuations are stretched, so cautious entry is advised after a pullback.
Positive
- High ROCE (33.3%) and ROE (19.8%) indicate strong profitability.
- Low debt-to-equity ratio (0.14) ensures financial stability.
- Strong EPS of ₹240 supports valuation strength.
Limitation
- P/E ratio (40.0) above industry average (24.3).
- P/B ratio (~8.46) indicates expensive valuation.
- Dividend yield of 0.52% is modest.
Company Negative News
- Quarterly PAT declined from ₹254 Cr. to ₹226 Cr.
- RSI at 76.6 indicates overbought levels, risk of correction.
Company Positive News
- FII holdings increased slightly (+0.11%).
- DII holdings increased (+0.56%), reflecting domestic institutional support.
- Strong trading volumes above average indicate investor interest.
Industry
- Power and infrastructure sectors drive demand for cables and conductors.
- Industry P/E at 24.3 is lower than APARINDS, showing sector-wide value opportunities.
- Government push for infrastructure and electrification supports long-term growth.
Conclusion
🔎 APARINDS is financially strong with excellent return metrics, low debt, and robust EPS. While valuations are stretched and technicals show overbought levels, fundamentals and industry tailwinds support long-term holding. Entry near ₹8,800–9,200 is attractive for investors seeking exposure to infrastructure-linked growth.