Apar Industries - Cables, Conductors To Drive Next Leg Of Growth: Nirmal Bang

Apar Industries’ margin profile is likely to improve significantly as the share of cables increases.

<div class="paragraphs"><p>Apar Industries'cable solutions. (Source: Company website)</p></div>
Apar Industries'cable solutions. (Source: Company website)

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Nirmal Bang Report

We spoke to the management of Apar Industries Ltd. as part of our virtual Investor Conference to gain insights into the current business environment, demand trends, commodity costs and supply chain headwinds, besides the company’s business outlook going ahead.

The management highlighted that the demand scenario over the next couple of years remains strong, particularly for the cables and conductors segments.

Apar Industries expects to clock 10-15% volume compound annual growth rate in the conductors segment over the next couple of years. The company expects to clock 25-30% revenue CAGR in the cables segment over the next couple of years.

Apar Industries has the highest number of underwriter laboratories certificates of compliance from India for the sale of cables in the U.S. market. We believe that export of cables, particularly to the U.S. market, is likely to drive growth in the cables segment over the next decade (as U.S. imports $20 billion worth of cables annually).

Further, Apar Industries’ margin profile is likely to improve significantly as the share of cables (which is a margin-accretive business) increases.

Click on the attachment to read the full report:

Nirmal Bang Apar Industries - Company Update.pdf
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