Posted on May 15, 2025, by Niftynews
APAR Industries share price zoomed 10% on May 15, 2025, reaching ₹7,635, bucking the broader trend in the BSE Capital Goods index, which was down 0.1% during the same session. The move comes despite an overall cautious market sentiment, with benchmark indices like the BSE Sensex and NSE Nifty down 0.5% each.
APAR’s strong Q4 performance and resilient business outlook seem to be fueling investor optimism, making it one of the standout gainers in the capital goods and power equipment segment.
📊 Market Snapshot: Capital Goods Under Pressure, APAR Breaks Away
While APAR Industries rallied sharply, the BSE Capital Goods index hovered at 66,865.5, registering a modest intraday decline of 0.1%. Key gainers in the index today included:
- Grindwell Norton: Up 2.2%
- Carborundum Universal: Up 1.8%
Conversely, notable laggards included:
- Lakshmi Machine Works: Down 2.4%
- Adani Green Energy: Down 0.8%
The BSE Capital Goods index has gained 8.2% over the past 12 months, reflecting steady momentum in India’s infrastructure and industrial investment cycle. However, today’s muted performance indicates sector rotation and profit booking in select names.
📈 APAR Industries Share Price Movement: A Closer Look
Today’s surge in APAR Industries share price to ₹7,635 came despite a minor 1.3% YoY decline over the last 12 months (from ₹7,733.5 in May 2024). Yet, the current rally could be signaling a turnaround, driven by recent earnings and improved investor confidence.
Key Numbers:
- Current Price: ₹7,635.0
- 1-Year Performance: Down 1.3%
- P/E Ratio (Trailing 12 months): 37.3
The stock is now showing signs of reversing its year-long underperformance, with analysts closely watching for sustained movement above resistance levels.
🧾 APAR Industries Financial Performance: Q4 FY25 Highlights
APAR Industries recently posted its earnings for the quarter ended March 2025, showing a modest but healthy growth trend:
- Net Profit: ₹2,500 million (up 5.9% YoY)
- Revenue: ₹52,098 million (up 16.9% YoY)
This growth builds on a strong FY24, where the company delivered:
- FY24 Net Profit: ₹8,251 million (up 29.4% YoY)
- FY24 Revenue: ₹161,530 million (up 12.7% YoY)
These figures suggest that APAR has managed to maintain both top-line and bottom-line momentum, driven by demand for its cables, conductors, and specialty oils across domestic and international markets.
📦 What’s Fueling the Rally?
Here’s why APAR Industries share is outperforming the broader capital goods space:
✅ Earnings Momentum
Despite a high base from FY24, APAR delivered solid Q4 growth, highlighting its ability to manage input costs and supply chain volatility. Margin preservation in an inflationary environment has earned investor trust.
✅ Sector Tailwinds
The government’s push toward power grid modernization, renewable energy integration, and Make in India initiatives are likely to drive continued demand for APAR’s product lines, especially in transmission and distribution (T&D) segments.
✅ Undervalued vs Peers?
Although trading at a P/E of 37.3, some analysts believe that premium valuation is justified due to APAR’s diversified business model, export reach, and consistent earnings performance compared to peers in the BSE Capital Goods index.
📉 Broader Market Context
While APAR Industries surged, the broader market was under pressure:
- BSE Sensex: 80,946.7 (down 0.5%)
- NSE Nifty: 24,546.6 (down 0.5%)
Top losers included Power Grid Corp. and NTPC, both slipping over 1%, while stocks like Tata Motors and Tata Steel remained among the most traded on the BSE.
Interestingly, over the last 12 months, Sensex has risen 11.2%, while APAR Industries share price saw a minor decline, potentially leaving room for catch-up gains if sentiment continues to improve.
📊 Long-Term Perspective: How APAR Industries Compares
Here’s how APAR Industries stacks up against top performers in the BSE Capital Goods index over the past year:
- Bharat Electronics: Up 52.3%
- Hindustan Aeronautics (HAL): Up 21.8%
- Larsen & Toubro (L&T): Up 8.0%
- APAR Industries: Down 1.3%
While lagging some peers in stock performance, APAR’s fundamental growth is on par with or better than several sector leaders, suggesting the market may have been overly cautious.
📝 Final Thoughts: Should You Buy APAR Industries Now?
APAR Industries appears to be regaining investor confidence after a period of consolidation. With improving earnings, sector tailwinds, and a breakout in share price, the stock might offer upside potential for both short- and medium-term investors.
✔ Key Takeaways:
- Strong revenue and profit growth in Q4 FY25
- Outperformance in a flat capital goods market
- Favorable demand outlook in power and infrastructure sectors
- Potential for re-rating if earnings momentum continues
However, with a relatively high P/E and past volatility, it’s important for investors to monitor technical levels and macro cues before making fresh entries.
