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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532259 | NSE: APARINDS

Apar Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 4:03 pm

Market Cap 35,988 Cr.
Current Price 8,959
High / Low11,025/5,151
Stock P/E42.4
Book Value 1,023
Dividend Yield0.57 %
ROCE44.0 %
ROE26.8 %
Face Value 10.0
PEG Ratio0.98

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Apar Industries Ltd

Competitors of Apar Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HP Adhesives Ltd 710 Cr. 77.3131/77.034.5 18.40.39 %17.7 %12.6 % 2.00
Haryana Leather Chemicals Ltd 43.6 Cr. 88.9124/48.79.66 87.21.12 %8.96 %7.25 % 10.0
Hardcastle & Waud Mfg Co Ltd 58.9 Cr. 8671,355/44230.9 6630.00 %7.00 %5.98 % 10.0
Grauer & Weil (India) Ltd 4,765 Cr. 105120/57.829.7 19.20.48 %26.1 %19.6 % 1.00
DMCC Speciality Chemicals Ltd 729 Cr. 292380/24555.0 85.40.34 %10.8 %5.68 % 10.0
Industry Average12,411.24 Cr901.6456.19181.090.33%13.12%10.00%6.77

All Competitor Stocks of Apar Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,7141,8991,8102,2692,2293,0123,0933,2353,9394,0893,7733,9254,013
Expenses1,5531,7951,6802,1422,1122,8392,8563,0093,5963,6653,4273,5763,608
Operating Profit161104129128117174237226343424346349405
OPM %9%6%7%6%5%6%8%7%9%10%9%9%10%
Other Income5612579412711141921
Interest3722383126466171947970103113
Depreciation23242424252525262627272829
Profit before tax10664797774112156141230328263237284
Tax %22%25%21%26%26%26%21%27%26%26%25%27%23%
Net Profit824862575583122103170243197174218
EPS in Rs21.5512.4516.2814.8714.3621.5932.0026.8244.4063.4351.5945.4454.16

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales3,5894,6434,6285,1085,0784,8325,8187,9647,4256,3889,31714,35215,800
Expenses3,3684,3224,3214,8434,6984,3985,3937,4726,9305,9488,73913,08514,276
Operating Profit2223213072643804344264914954405781,2671,524
OPM %6%7%7%5%7%9%7%6%7%7%6%9%10%
Other Income47-341101511151519333664
Interest170144155162175131158223254157171344365
Depreciation2224273138455667879398104112
Profit before tax77150129721782732232161692083428551,112
Tax %3%27%30%32%32%36%35%37%20%23%25%25%
Net Profit741109049122177145136135160257638832
EPS in Rs20.3028.4523.3712.8631.6146.1437.8235.5535.3241.9467.09166.64214.62
Dividend Payout %20%18%22%27%21%22%25%27%27%23%22%24%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)48.65%-18.18%-45.56%148.98%45.08%-18.08%-6.21%-0.74%18.52%60.62%148.25%
Change in YoY Net Profit Growth (%)0.00%-66.83%-27.37%194.54%-103.90%-63.16%11.87%5.47%19.25%42.11%87.62%

Apar Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:15%
3 Years:36%
TTM:9%
Compounded Profit Growth
10 Years:25%
5 Years:44%
3 Years:73%
TTM:8%
Stock Price CAGR
10 Years:35%
5 Years:82%
3 Years:137%
1 Year:55%
Return on Equity
10 Years:19%
5 Years:22%
3 Years:26%
Last Year:27%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:42 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital38383838383838383838384040
Reserves5886586918159981,0701,1641,1281,3611,6772,1983,8364,067
Borrowings984792494384305363253372325359376476543
Other Liabilities1,6481,5101,7321,6802,1072,8053,5013,1163,2754,5335,6055,2645,474
Total Liabilities3,2582,9982,9562,9193,4484,2764,9574,6544,9996,6088,2189,61610,124
Fixed Assets2633593953985746497098858788819501,1931,247
CWIP45181056282010355293899122189
Investments80251121190187060315411139
Other Assets2,8702,6202,5462,3522,7283,6083,9583,7144,0325,6577,1148,2908,550
Total Assets3,2582,9982,9562,9193,4484,2764,9574,6544,9996,6088,2189,61610,124

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +453-63229841231222563294281244698-283
Cash from Investing Activity +-208-12-59-223-166-5-38845-115-91-267-267
Cash from Financing Activity +-23-181-369-153-157-69-293-189-123-106-186635
Net Cash Flow223-824-13036-11151-49-49434624685

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow222.00-663.00-485.00-230.00-4.00129.0063.00238.00123.00115.00219.00-375.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days64879178951099893106998189
Inventory Days7510184721029874851191088583
Days Payable148136141130181207188182231207172140
Cash Conversion Cycle-9523420150-16-4-61-532
Working Capital Days116749243632101830312252
ROCE %19%18%17%28%31%27%30%28%22%27%51%44%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters60.46%60.57%60.64%60.64%60.64%60.64%60.64%60.64%57.77%57.77%57.77%57.77%
FIIs5.55%5.52%5.94%6.30%6.73%6.66%7.47%9.09%10.98%11.55%11.51%10.97%
DIIs17.86%18.25%17.87%16.76%17.53%17.95%17.97%17.06%18.62%18.90%19.73%20.41%
Government0.26%0.26%0.00%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public15.87%15.41%15.56%16.30%15.10%14.75%13.92%13.23%12.63%11.78%11.00%10.85%
No. of Shareholders33,23134,46039,68054,21258,21262,72671,66092,40394,35490,96991,4911,00,821

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund1,080,1161.49682.77198,7782024-11-15443.38%
HDFC Balanced Advantage Fund - Regular Plan827,2930.68522.96198,7782024-11-15316.19%
HSBC Small Cap Fund - Regular Plan701,6013.17443.5198,7782024-11-15252.96%
HDFC Small Cap Fund - Regular Plan575,3711.27363.71198,7782024-11-15189.45%
DSP Flexi Cap Fund511,8033.21323.53198,7782024-11-15157.47%
DSP Equity & Bond Fund341,9772.44216.17198,7782024-11-1572.04%
Axis Midcap Fund297,4690.77188.04198,7782024-11-1549.65%
DSP Small Cap Fund201,2020.92127.19198,7782024-11-151.22%
Bandhan Flexi Cap Fund199,9501.88126.39198,7782024-11-150.59%
DSP Mid Cap Fund198,7780.76125.65198,7782024-11-150%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)212.10166.6467.0941.9435.32
Diluted EPS (Rs.)212.10166.6467.0941.9435.32
Cash EPS (Rs.)234.36193.9192.6266.3558.08
Book Value[Excl.RevalReserv]/Share (Rs.)965.01584.37448.19368.23304.79
Book Value[Incl.RevalReserv]/Share (Rs.)965.01584.37448.19368.23304.79
Revenue From Operations / Share (Rs.)4021.163750.242435.321669.201949.76
PBDIT / Share (Rs.)400.49330.39151.64114.38126.52
PBIT / Share (Rs.)371.68303.13126.0889.97103.75
PBT / Share (Rs.)275.44223.3089.3354.4244.27
Net Profit / Share (Rs.)205.56166.6467.0541.9435.31
NP After MI And SOA / Share (Rs.)205.40166.6467.0841.9435.31
PBDIT Margin (%)9.958.806.226.856.48
PBIT Margin (%)9.248.085.175.385.32
PBT Margin (%)6.845.953.663.262.27
Net Profit Margin (%)5.114.442.752.511.81
NP After MI And SOA Margin (%)5.104.442.752.511.81
Return on Networth / Equity (%)21.2828.5114.9611.3811.58
Return on Capital Employeed (%)34.7246.5823.6520.3927.91
Return On Assets (%)8.587.763.883.202.90
Long Term Debt / Equity (X)0.080.060.110.130.16
Total Debt / Equity (X)0.100.130.140.150.24
Asset Turnover Ratio (%)1.811.851.541.281.51
Current Ratio (X)1.541.221.221.221.13
Quick Ratio (X)0.990.770.740.740.72
Inventory Turnover Ratio (X)4.624.363.853.114.26
Dividend Payout Ratio (NP) (%)0.009.0014.160.0064.84
Dividend Payout Ratio (CP) (%)0.007.7310.250.0039.42
Earning Retention Ratio (%)0.0091.0085.840.0035.16
Cash Earning Retention Ratio (%)0.0092.2789.750.0060.58
Interest Coverage Ratio (X)4.164.144.133.222.13
Interest Coverage Ratio (Post Tax) (X)3.143.092.822.181.59
Enterprise Value (Cr.)27825.499354.382475.331805.891206.94
EV / Net Operating Revenue (X)1.720.650.260.280.16
EV / EBITDA (X)17.307.404.274.132.49
MarketCap / Net Operating Revenue (X)1.740.660.260.280.14
Retention Ratios (%)0.0090.9985.830.0035.15
Price / BV (X)7.244.281.451.290.94
Price / Net Operating Revenue (X)1.740.660.260.280.14
EarningsYield0.020.060.100.080.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Apar Industries Ltd as of November 17, 2024 is: 11,690.81

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 17, 2024, Apar Industries Ltd is Undervalued by 30.49% compared to the current share price 8,959.00

Intrinsic Value of Apar Industries Ltd as of November 17, 2024 is: 16,771.60

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 17, 2024, Apar Industries Ltd is Undervalued by 87.20% compared to the current share price 8,959.00

Last 5 Year EPS CAGR: 43.46%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 28.50%, which is a positive sign.
  2. The company has higher reserves (1,557.77 cr) compared to borrowings (463.54 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (6.77 cr) and profit (222.54 cr) over the years.
  1. The stock has a high average Working Capital Days of 31.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 9.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Apar Industries Ltd:
    1. Net Profit Margin: 5.11%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 34.72% (Industry Average ROCE: 13.12%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 21.28% (Industry Average ROE: 9.66%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.14
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.99
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 42.4 (Industry average Stock P/E: 46.82)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.1
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Apar Industries Ltd. is a Public Limited Listed company incorporated on 28/09/1989 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L91110GJ1989PLC012802 and registration number is 012802. Currently Company is involved in the business activities of Manufacture of other electronic and electric wires and cables. Company’s Total Operating Revenue is Rs. 8595.75 Cr. and Equity Capital is Rs. 38.27 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - Others301, Panorama Complex, Vadodra Gujarat 390007com.sec@apar.com
http://www.apar.com
Management
NamePosition Held
Mr. Kushal N DesaiChairman & M.D & CEO
Mr. C N DesaiManaging Director
Mrs. Nirupa K BhattInd. Non-Executive Director
Mr. Rajesh SehgalInd. Non-Executive Director
Mr. Kaushal J SampatInd. Non-Executive Director
Mr. Rishabh K DesaiNon Exe.Non Ind.Director

FAQ

What is the latest intrinsic value of Apar Industries Ltd?

The latest intrinsic value of Apar Industries Ltd as on 17 November 2024 is ₹11690.81, which is 30.49% higher than the current market price of ₹8,959.00.

What is the Market Cap of Apar Industries Ltd?

The Market Cap of Apar Industries Ltd is 35,988 Cr..

What is the current Stock Price of Apar Industries Ltd as on 17 November 2024?

The current stock price of Apar Industries Ltd as on 17 November 2024 is ₹8,959.

What is the High / Low of Apar Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Apar Industries Ltd stocks is 11,025/5,151.

What is the Stock P/E of Apar Industries Ltd?

The Stock P/E of Apar Industries Ltd is 42.4.

What is the Book Value of Apar Industries Ltd?

The Book Value of Apar Industries Ltd is 1,023.

What is the Dividend Yield of Apar Industries Ltd?

The Dividend Yield of Apar Industries Ltd is 0.57 %.

What is the ROCE of Apar Industries Ltd?

The ROCE of Apar Industries Ltd is 44.0 %.

What is the ROE of Apar Industries Ltd?

The ROE of Apar Industries Ltd is 26.8 %.

What is the Face Value of Apar Industries Ltd?

The Face Value of Apar Industries Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Apar Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE