APARINDS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | APARINDS | Market Cap | 51,293 Cr. | Current Price | 12,772 ₹ | High / Low | 13,149 ₹ |
| Stock P/E | 52.2 | Book Value | 1,153 ₹ | Dividend Yield | 0.40 % | ROCE | 33.3 % |
| ROE | 19.8 % | Face Value | 10.0 ₹ | DMA 50 | 11,489 ₹ | DMA 200 | 9,703 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.95 % | PAT Qtr | 226 Cr. | PAT Prev Qtr | 254 Cr. |
| RSI | 60.6 | MACD | 392 | Volume | 74,627 | Avg Vol 1Wk | 88,336 |
| Low price | 6,800 ₹ | High price | 13,149 ₹ | PEG Ratio | 1.02 | Debt to equity | 0.14 |
| 52w Index | 94.1 % | Qtr Profit Var | 28.2 % | EPS | 240 ₹ | Industry PE | 27.6 |
📊 Financial Overview:
APARINDS demonstrates strong fundamentals with quarterly PAT at ₹226 Cr., slightly lower than the previous ₹254 Cr. ROCE at 33.3% and ROE at 19.8% highlight excellent capital efficiency. Debt-to-equity is low at 0.14, ensuring financial stability. EPS stands at ₹240, reflecting robust profitability. Cash flows appear healthy given strong margins and efficient operations.
💹 Valuation Indicators:
The stock trades at a P/E of 52.2, well above the industry average of 27.6, suggesting premium valuation. P/B ratio is ~11.1 (12772 ÷ 1153), which is elevated. PEG ratio of 1.02 indicates fair valuation relative to growth prospects. Dividend yield of 0.40% provides minor investor returns. Intrinsic value appears slightly lower than current price, but strong fundamentals justify partial premium.
🏢 Business Model & Advantage:
APARINDS operates in cables, conductors, and specialty oils, benefiting from India’s infrastructure and power sector growth. Its competitive advantage lies in diversified product offerings, strong R&D, and efficient capital use. Institutional sentiment is positive, with FIIs (+0.03%) and DIIs (+0.95%) increasing holdings, reflecting confidence in long-term prospects.
📈 Entry Zone:
Technically, support lies near ₹11,489 (50 DMA) and ₹9,703 (200 DMA). A favorable entry zone would be between ₹11,500–₹12,000 if the stock consolidates. Long-term investors may hold given strong fundamentals and sector growth, though valuations suggest cautious accumulation.
Positive
- 📌 Strong ROCE (33.3%) and ROE (19.8%) indicate excellent efficiency.
- 📌 Low debt-to-equity (0.14) ensures financial stability.
- 📌 EPS of ₹240 reflects robust profitability.
- 📌 Institutional investors increased holdings (FII +0.03%, DII +0.95%).
Limitation
- ⚠️ High P/E (52.2) compared to industry average (27.6).
- ⚠️ Elevated P/B ratio (~11.1).
- ⚠️ Quarterly PAT declined from ₹254 Cr. to ₹226 Cr.
- ⚠️ Dividend yield (0.40%) is modest.
Company Negative News
- 📰 Slight decline in quarterly profits raises caution about earnings momentum.
Company Positive News
- 📰 Strong return ratios and minimal debt highlight financial health.
- 📰 Institutional inflows reflect confidence in long-term prospects.
Industry
- 🌐 Power and infrastructure industry is expanding with rising demand for cables and conductors.
- 🌐 Industry P/E at 27.6 reflects growth potential, while APARINDS trades at a premium.
Conclusion
✅ APARINDS is financially strong with excellent return ratios, low debt, and robust profitability. Current valuations are stretched relative to industry peers, but fundamentals justify long-term holding. Entry is advisable near ₹11,500–₹12,000 with cautious accumulation. Long-term investors can benefit from sector growth and the company’s diversified product portfolio.
For deeper insights, you could explore a peer comparison or a power sector outlook to complement this analysis.