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Apar Industries gains on government's boost for power

The company has announced three new projects across India and UAE, which will expand its capacity in the oil business, said analysts.

, ET Bureau|
Last Updated: Jan 17, 2017, 09.06 AM IST|Original: Jan 17, 2017, 08.47 AM IST
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The company has announced three new projects across India and UAE, which will expand its capacity in the oil business, said analysts.
The company has announced three new projects across India and UAE, which will expand its capacity in the oil business, said analysts.
MUMBAI: Shares of Apar Industries have risen over 11% in the past month as investors bet the company will be a key beneficiary of the government's initiatives to revive the power sector.The company manufactures conductors, oils and lubricants and cables.

“Apar could be a key beneficiary with a 23% market share in conductors and a near 45% market share in transmission oil,“ said Sachin Mehta, analyst at Centrum Broking.

The company has announced three new projects across India and UAE, which will expand its capacity in the oil business, said analysts.

“Apart from niche product mix and market leadership, it is likely to deliver decent return ratios and is cheaply valued at 12x FY18 earnings,“ said Mehta.

The stock has delivered 300% returns in the last three years.

“Apar's margins from cables segment will increase in the coming quarters due to a higher demand for power and elastomeric cables,“ said Ankit Soni, analyst, Karvy Stock Broking.

The conductor business is also seeing significant increase in sales, which would contribute to the overall margins of the company , said Soni. “We see the stock moving up to `666 in the coming week and to `720 levels in three months, giving up to 15% returns from current levels,“ said Chandan Taparia of Anand Rathi Securities.
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