Shares of leading aluminium and alloy conductor manufacturer Apar Industries spurted by over 7 percent to hit a fresh 52-week high in morning deals on Tuesday. The stock has rallied over 34 percent in the past three months on stellar financial performance and has more than doubled in the past year.
Shares of the Mumbai-headquartered company opened lower at Rs 1,598.05 but later picked up the pace to touch Rs 1,726, its 52-week high, on the BSE.
Apar Industries is the world’s leading aluminium and alloy conductor manufacturer. The company, the third-largest manufacturer of transformer oil, supplies conductors, a wide variety of cables, specialty oils, polymers, and lubricants.
Care Ratings last week revised its outlook on the long-term debt instruments of Apar Industries to ‘Positive’ from ‘Stable’ while reaffirming the ratings at CARE A/CARE A1.
The rating agency expects an improvement in the business risk profile over the medium term. The ratings continue to factor in the company's well-established and dominant position in the conductors, transformer, and specialty oil (TSO) segment.
The consolidated revenue of the company rose by 43 percent year-on-year to Rs 3,235 crore in the September quarter. This was largely driven by volume growth, an increase in commodity prices, especially oil-related products, and substantial growth in the export business.
Export revenue grew by 85 percent year-on-year, contributing to 47 percent of the company's overall revenues compared to 36 percent a year ago. EBITDA was also up 82 percent to Rs 237 crore at a margin of 7.3 percent. Profit after tax came in at Rs 103 crore, a rise of 80 percent over the previous year.
According to exchange data, promoters hold a little over 60.64 percent stake in the company. Among the promoters, Chairman and Managing Director Kushal Narendra Desai has a 24.06 percent stake while Chaitanya Narendra Desai has a 23.84 percent holding.
Among public shareholders, mutual funds such as HDFC Trustee Company Limited, L&T Mutual Fund Trustee Ltd., Nippon Life India Trustee Ltd., and banks hold a little over 16 percent stake in the company.
Shares of the company are trading at Rs 1,690.50, up 5 percent.
