Source: Moneycontrol
Shares of Apar Industries climbed to a three-month high of ₹8,399.95 on Friday, rising 6% during the day on the Bombay Stock Exchange (BSE). This rise comes even as the overall market stayed quiet. The stock has been going up for eight straight days, jumping 51% during this period. It has almost doubled from its low point of ₹4,270 in early April.
While the BSE Sensex dropped slightly by 0.2%, Apar Industries’ strong performance has attracted investors’ attention.
Strong Earnings and Bright Future
Apar Industries, known as the world’s largest maker of aluminium alloy conductors and a top producer of transformer oil and renewable energy cables in India, reported good results for the last quarter. Its revenue grew by nearly 17% compared to the same time last year, reaching ₹5,210 crore. Although its profit margin dipped a little, the company’s earnings after adjusting for currency changes increased by over 20% compared to the previous quarter. Net profit went up by almost 6% to ₹250 crore.
The company said it made a record revenue of over ₹5,000 crore in the last quarter, helped by strong sales in India and a recovery in the US market. Despite some concerns about tariffs from the US, Apar expects the demand to stay high due to a large gap between supply and demand, which is filled by imports worth $20 billion every year.
Plans for Growth
Apar Industries has announced plans to invest ₹1,300 crore to improve its manufacturing facilities. It expects to grow the volume of its conductors by 10% and increase sales of its cables by 25% in the next financial year. Its specialty oils business is also expected to grow by 6 to 8% due to strong global demand.
However, competition from Chinese companies in some markets like Africa, Latin America, and Europe could affect exports.
Expert Views
Experts say the company’s growth will depend on how well it handles exports to the US, competition from China, and contracts in India. But they remain positive in the long term because of the company’s strong position in transmission and distribution projects, focus on premium products, and leadership in renewable energy cables and transformer oils.
About the Company
Apar Industries is a $2 billion company with a presence in over 140 countries. It leads the world market in aluminium alloy conductors and is a top player in transformer oils. It also offers a wide range of specialty oils, cables, lubricants, and other products.
