Multibagger power stock hits record high as Q4 net profit zooms 194%

Shares of power equipment major Apar Industries Ltd hit a record high on Monday after the firm reported its March 2023 quarter and fiscal earnings. Apar Industries stock zoomed 12.09% to Rs 3,296.4 on BSE today. The stock opened flat at Rs 2,940 today against the previous close of Rs 2940.80 on BSE. In terms of technicals, the relative strength index (RSI) of the stock stands at 68.2, signaling it's neither trading in overbought nor in oversold territory.  Apar Industries shares have a beta of 0.9, indicating low volatility in a year. Apar Industries shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.     

The stock has risen 370.69% in one year and gained 69.79% since the beginning of this year. The share has climbed 11.74% in a month. Total 0.48 lakh shares of the firm changed hands amounting to a turnover of Rs 14.77 crore on BSE. Market cap of the firm stood at Rs 11,710 crore on BSE.  

Also Read: Multibagger power stock slips 24% from record high; market cap falls below Rs 10,000 crore 

The firm reported a 35.4% rise in sales to Rs 4,056.53 crore in the March 2023 quarter against Rs 3003.90 crore  in the March 2022 quarter. Net profit zoomed 194% to Rs 242.73 crore in Q4 against Rs 82.61 crore in the March 2022 quarter.  Earnings per shares rose to Rs 63.43 in Q4 against Rs 21.49 in the March quarter of 2022.  

The company recommended dividend for the financial year 2022-23 at Rs 40 per share aggregating to Rs 153.07 crore on 38,268,619 Equity shares of Rs 10/- each fully paid.  

Amit Anwani – Research Analyst at Prabhudas Lilladher said, “The firm posted robust quarterly performance and margin expansion was led by strong exports. Consolidated sales grew 35.7% YoY to Rs 40.9 bn (PL estimate of Rs 46.3 bn and consensus estimate of Rs 399 bn), comprising Conductors/ Speciality Oil/ Cables ~52%/~29%/~23% of total sales. 

Conductors segment reported a growth of 41.1% YoY to Rs 21.2 bn, owing to strong volume growth (up 46% YoY) and strong growth in exports (up 81% YoY). Cables reported a 38.1% YoY growth to Rs 9.4 bn owing to strong growth in exports and elastromeric products. Speciality oil segment revenue grew 28% YoY to Rs 11.8 bn, driven by volume growth and higher base oil price. Gross margin expanded by 488 bps YoY to 27.1%,(PL estimates of 24.9%) aided by better product mix and geography mix. At the current market price, the stock is currently trading at 22x/19.5x FY24/25E.”           

The stock has risen 370% in one year and gained 70% since the beginning of this year. The share has climbed 14.19% in a month.  

Apar Industries Limited is a manufacturer and supplier of conductors, a variety of cables, specialty oils, polymers and lubricants. The company’s segments include conductor, transformer & specialities oils and power/telecom cables. It provides diverse fields of electrical and metallurgical engineering offering value-added products and services in power transmission conductors, petroleum specialty oils, and power & telecom cables.  

Also read: Birlasoft Vs Happiest Minds Q4 results preview: Here's are the expectations from various brokerage firms

Also read: Paytm, Cartrade, Delhivery: FIIs hold over 50% stake in these 10 companies; should you buy?