Multibagger stock: From Rs 600 to Rs 2,300, this smallcap zoomed┬а285% since last Holi. Any guesses?
Indian markets have outperformed their global peers and have delivered a good number of multibaggers since last Holi. Shares of Apar Industries Limited have also zoomed over 285 per cent in the last one year. An investment of Rs 10 lakh in this multibagger stock in March 2022 would have turned to Rs 38 lakh today.
Apar Industries’ share price which stood at Rs 602 on March 7, 2022, rose to Rs 2318.70 in trade on March 6, 2023. The stock hit a 52-week high of Rs 2,430.15 on February 17, 2023, and a 52-week low of Rs 558.60 on May 11, 2022. It has recovered over 315 per cent from its 52-week low.
About the company
Founded in 1958, Apar Industries Limited is a diversified conglomerate with a presence in over 140 countries. The company is the largest aluminium and alloy conductor manufacturer and the 3rd largest transformer oil manufacturer. It also offers over 350 grades of speciality oils, the largest range of speciality cables, lubricants, and speciality automotive and polymers.
Apar Industries’ Q3 performance
The company posted a 210 per cent year-on-year jump in profit to Rs 170 crore for the quarter ended December 2022. Revenue from operations jumped 77 per cent on a yoy basis. Order book as on end of Q3FY23 stood at Rs 4,885 crores, of which premium product accounts 44 per cent.
Commenting on the results as well as the outlook of the business Mr Kushal N Desai, Chairman & MD of Apar Industries said, “The third quarter continued its momentum by recording historic high top-line as well as bottom-line. We witnessed volume growth across all three divisions and the net profit tripled on a year-on-year basis. We are optimistic about the growth prospects of our company as we believe we are appropriately placed to tap the benefits of infra-led spending, and push towards renewable energy as well as China+l. ”
Experts on Apar Industries
Prabhudas Lilladher, in its recent report, said the company’s focus towards value added products and export business will drive strong topline and profitability in the long run.
It believes that the cable business is likely to continue with its robust show led by strong demand for elastomeric cables from renewable energy installations, railways & defence. Going forward, the conductors and cables business is likely to witness strong traction from exports led by increased infrastructure spends in key markets such as the USA, Europe etc.
The brokerage has revised the FY23/24/25E estimates by 40%/30%/24% after factoring in increasing share of premiumisation & exports along with strong volume growth across segments, expanding international footprints and a strong outlook for cable business.
