According to reports from Prabhudas Lilladher, the brokerage has recommended a buy rating on Apar Industries with a target price of ₹9,629. The stock is currently trading at a P/E ratio of 31.0x/26.0x on FY27/28E earnings. The brokerage continues to value the Conductors, Cables and Specialty Oils segments at PE of 34x/34x/12x Sep'27E respectively, arriving at the same SoTP-derived target price as earlier.
As reported by Prabhudas Lilladher, the brokerage interacted with Apar Industries management to assess the potential impact of ongoing US-Iran geopolitical tensions. The management indicated that the situation remains fluid, though the company's direct exposure to the Middle East is limited at 6-7% of total revenue. Operations remain unaffected given adequate raw material inventory and incoming supplies, though if the situation worsens it could increase shipping costs, insurance and commodity volatility.
According to the brokerage report, management reiterated guidance of ₹30,000 and tailwinds EBITDA/mt with 10% volume growth in conductors, supported by premium product mix, capacity expansion and sustained demand from the US driven by grid modernization and renewable integration. The cables business continues to remain a key growth driver, with 20%+ YoY growth and 11% EBITDA margins expected in the medium term, aided by capacity expansion of ₹8bn capex, better product mix and operating leverage.
As reported by Prabhudas Lilladher, demand visibility remains strong driven by power T&D, renewables and industrial electrification. Emerging opportunities in data centres, where cables account for 4-5% of project capex, provide an incremental growth lever over the medium term. The company's diversified portfolio across conductors, cables and specialty oils segments positions it well for sustained growth across multiple end-user industries.
