APAR Industries Limited

Industrials — Electrical Equipment & Parts · NSE

₹16,025.00−₹889.00 (−5.26%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of APAR Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

APAR Industries Limited engages in the electrical and metallurgical engineering business in India and internationally. It operates through Conductor, Transformer & Specialties Oils, Power/Telecom Cables, and Others segments.

IndustryElectrical Equipment & Parts

SectorIndustrials

Annual revenue₹22,810 Cr

How does it make money?

Turns over ₹22,810 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.1% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 14.4% and earnings to grow about 10.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+14.4%

Est. earnings growth+10.5%

Analysts8

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +60% while net margin moved -4% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+60%

Margin effect-4%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 54.6x is demanding — it needs sustained high growth to justify
✗ P/E is 26% above its own historical median of 43.2x — expensive by its own standards
✗ P/B of 11.94x is a steep premium to book

Quality vs. Valuation

Company Quality

67/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

37/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

54.6x

3Y Median

43.2x

40 monthly readings · mean 46.2x · range 26.1x–76.8x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 26% above its 3y median of 43.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 39% below the peer median of 88.8x.

vs. its own history

Expensive

43.2x median over 40 months · +26%

vs. sector peers

Cheap

88.8x median of 3 peers · -39%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

37.6x

PEG

3.57

What's Good / What's Bad

🟢 What's Going Well3

High return on capital employed
ROCE of 26.7% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 28.5% to 18.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 41.3% to 26.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 154% over 3 years, from ₹376 Cr to ₹956 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 39% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹231 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 26% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 28.5% to 18.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 13% a year✓ 17.0% CAGR
Latest reported year was 29.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹231 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 26.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 2 neutral · 2 weak

Market Cap

₹67,100 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

54.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.94x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹293.45

Profitable

Profitable on a per-share basis

ROE

18.1%

Strong

Strong capital efficiency

ROCE

26.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

29.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

77.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.37%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹231 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

42.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

10.8%

Average

Average margins

Net Margin

4.8%

Average

Average bottom-line conversion

Current Ratio

1.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

74%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

17832.0 / 17421.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14,258 Cr	₹16,045 Cr	₹18,492 Cr	₹22,810 Cr	+17.0%
EBITDA	₹1,159 Cr	₹1,496 Cr	₹1,496 Cr	₹1,793 Cr	+15.7%
EBITDA Margin	8.1%	9.3%	8.1%	7.9%	—
PAT (Net Profit)	₹638 Cr	₹825 Cr	₹821 Cr	₹977 Cr	+15.3%
EPS	₹166.64	₹212.1	₹204.47	₹242.81	+13.4%
ROE	28.5%	21.3%	18.2%	18.1%	—
ROCE	41.3%	32.3%	27.8%	26.7%	—
Total Debt	₹376 Cr	₹476 Cr	₹585 Cr	₹956 Cr	+36.4%
Free Cash Flow	₹451 Cr	-₹614 Cr	₹782 Cr	₹231 Cr	-20.0%

🟢 Revenue has grown at 17.0% a year over 3 years.

🟢 EBITDA has grown at 15.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.9% over 3 years.

🟢 PAT (Net Profit) has grown at 15.3% a year over 3 years.

🟢 EPS has grown at 13.4% a year over 3 years.

🔴 ROE has fallen from 28.5% to 18.1% over 3 years (-10.4 pts).

🔴 ROCE has fallen from 41.3% to 26.7% over 3 years (-14.6 pts).

🔴 Total Debt has grown at 36.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 20.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13,711 Cr

Total Liabilities

₹8,318 Cr

Cash & Equivalents

₹669 Cr

Operating Cash Flow

₹968 Cr

Capex

-₹737 Cr

Shareholding (proxy)

Institutional Holding

28.6%

Insider Holding

55.7%

Corporate Actions

Dividend Rate

₹60

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

5 Buy · 3 Hold · 0 Sell

Target Price (Mean)

₹15,398.13

-3.9% vs CMP

Target Range

₹14,230 – ₹17,700

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

2 mixed4 general

What APAR Industries Holders Got Right Before A 93% Run

Simply Wall Street, 17 Oct

What Comes Next For APAR Industries After A 104% Gain

Yahoo Finance, 16 Oct

Apar Industries Share Price Falls 2%: Profit Booking Explained

Univest, 30 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Apar Industries Ltd is Rated Buy

MarketsMojo, 17 Oct

Apar Industries - 10 stocks held by 100+ MF schemes in September rally up to 205% in CY26; 6 turn multibaggers

The Economic Times, 16 Oct

Apar Industries Shares Rise 2.11% to Rs 16,795.00

Moneycontrol.com, 11 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Risk

MiddlingBusiness Quality · Profitability

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑