Apar Industries gets new 'Buy' from Antique; 20% stock upside seen

Antique Stock Broking has set a target price of ₹10,740 per share for Apar Industries, a potential upside of 20 per cent from Tuesday's closing price.

Analysts at Antique Stock Broking initiated coverage on Apar Industries Ltd. with a 'Buy' rating, as the company is expected to benefit from the tailwinds of sustained growth momentum in the global power sector investment. 

 

The brokerage has set a target price of ₹10,740 per share, a potential upside of 20 per cent from Tuesday's closing price. 

 

Apar Industries is a leading global manufacturer of aluminium and alloy conductors, analysts said, adding that it's a key exporter and producer of renewable and speciality cables. The company has a diversified product portfolio and a wide geographic presence, with exports contributing around 30-40 per cent of revenues, Antique said.

 

According to Antique, Apar Industries' growth strategy is anchored in premiumisation, export expansion and a strong foothold in fast-growing segments. The brokerage sees sustained momentum in global power sector investments, led by data centres, renewable energy and electric mobility, which is driving demand for conductors, cables and transformer oils.

 

The global energy sector is at an inflexion point, driven by a multi-decade capital expenditure supercycle in the Power Transmission & Distribution (T&D) sector, the note said.

 

Antique expects Apar Industries to deliver a consolidated revenue, Ebitda and profit after tax compound annual growth rate of 18 per cent, 21 per cent and 25 per cent, respectively, over the financial year 2025 (FY25) to FY28. While the stock saw a sharp re-rating during calendar years 2022-24, it has underperformed over the past 12 months amid investor concerns around tariff-based trade protectionism. Antique views this as a temporary headwind and believes growth drivers remain intact.  CATCH STOCK MARKET LIVE UPDATES TODAY

 

At 22.5 times FY28 estimated earnings, Antique notes that Apar Industries trades at a discount to frontline cable peers such as Polycab and KEI Industries, it said.

 

Apar Industries has an extensive international presence across Europe, Africa, Asia, including the Middle East, as well as North and South America. Exports contributed 24 per cent, 31 per cent and 44 per cent of revenues from conductors, cables and speciality oils, respectively, in FY25. 

 

Antique noted that Apar Industries has the highest number of Underwriters Laboratories certifications among Indian cable manufacturers, enabling exports to the US market. The company's export strategy is driven by technically advanced products that meet stringent global standards and certifications, including customer-specific requirements of international clients.

 

Looking ahead, Antique believes the global energy transition and continued infrastructure expansion are likely to create significant growth opportunities, positioning Apar Industries well to capitalise on these tailwinds.

Apar Industries stock price movement

Shares of the company snapped a five-day winning streak on Tuesday. The counter has risen 13.4 per cent this year, compared to a 9.3 per cent advance in the benchmark Nifty 50. Apar Industries has a total market capitalisation of ₹35,909.87 crore.   ===== 

Disclaimer: The view/outlook has been suggested by Antique Stock Broking. Views expressed are their own.