APARINDS - Investment Analysis

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

Investment Rating: 4.5

📊 Fundamental Analysis Summary

Apar Industries (APARINDS) is a high-quality industrial and electrical equipment company with strong profitability, low debt, and consistent earnings growth. Its PEG ratio suggests fair valuation relative to growth, and capital efficiency metrics like ROCE are excellent. While the stock has run up significantly, it remains a solid long-term candidate due to its robust fundamentals and sector leadership.

Metric Value Interpretation

P/E Ratio 44.1 Slightly above industry — priced for quality and growth

PEG Ratio 0.91 Fairly valued — supports long-term accumulation

ROE / ROCE 19.6% / 32.1% Strong — efficient capital deployment

Dividend Yield 0.53% Modest — growth-focused rather than income-oriented

Debt-to-Equity 0.13 Very low — excellent financial health

EPS ₹220 Strong — supports valuation

PAT Growth (QoQ) +5.2% Consistent — steady earnings momentum

Book Value ₹1,121 Price-to-book ~8.6× — justified by ROCE

RSI / MACD 66.7 / +265 RSI nearing overbought; MACD bullish — momentum strong but caution advised

DMA 50 / 200 ₹8,325 / ₹7,813 Price above both — bullish trend

52W Price Range ₹4,270 – ₹11,797 Currently at 71.9% of 52W high — room for upside

FII/DII Change -0.81% / +1.16% Mixed — DII accumulation, slight FII reduction

📉 Ideal Entry Price Zone

Entry Zone: ₹8,400 – ₹9,000

Near 50-DMA and below RSI 60 — better risk-reward.

Avoid fresh entry above ₹10,000 unless earnings accelerate.

🧭 Exit Strategy & Holding Period

Holding Period

5+ years — ideal for long-term compounding through high ROCE and consistent growth.

Exit Strategy

Consider partial exit if PEG rises above 1.5 or ROCE drops below 25%.

Reassess if price exceeds ₹11,500 without matching EPS or PAT growth.

Key Metrics to Monitor

ROCE consistently above 30%

PEG ratio staying below 1.2

PAT growth > 20% YoY

EPS trending above ₹250

🧠 Final Thoughts

Apar Industries is a fundamentally strong stock with excellent capital efficiency, low debt, and fair valuation. It’s well-positioned for long-term growth in industrial and energy infrastructure. While short-term momentum is high, disciplined entry and periodic review of growth metrics will help maximize returns. A solid pick for long-term wealth creation.

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