Institutional Equities

Apar Industries (APR) ACCUMULATE

Capital Goods | 1QFY25 Result Update
CMP: Rs9,110 | Target Price (TP): Rs8,700 | Downside: 4% July 30, 2024

Exports to drive both growth & margins in near term

Key Points Est Change Upward
TP Change Upward
 EBITDA margin was above our estimate by 71bps on account of better-than-
expected EBITDA growth in Transformer & Specialty Oils business. Rating Change No change

 The slowdown in the US and Europe led to a drop in exports in the Conductors & Company Data and Valuation Summary
Cables segments. But, this was offset by strong domestic demand for both. Apar
Reuters: APAR.BO
has intensified its focus on new capacity addition to the grid, spurred by the Solar
Power segment. Bloomberg: APR IN Equity
Mkt Cap (Rsbn/US$bn): 365.9 / 4.4
 Overall, Domestic revenues (63% revenue contribution in 1QFY25 v/s 46.7%
YoY) grew by 43.4% YoY, while Exports (37% revenue contribution in 1QFY25 52 Wk H / L (Rs): 9,543 / 3,545
v/s 53.3% YoY) de-grew by 25.9% YoY. The management expects recovery in ADTV-3M (mn) (Rs/US$): 1,188.2 / 14.2
Initiating Coverage

Exports in 2HFY25. Stock performance (%) 1M/6M/1yr: 7.5 / 50.1 / 136.1

 While we remain structurally positive about Apar’s long term business prospects, Nifty 50 performance (%) 1M/6M/1yr: 4.1 / 9.8 / 26.0
the stock has run up ~55% YTDCY24. We maintain ACCUMULATE with a revised
TP of Rs8,700. This implies a PE of 29x on June’26E EPS and it is at ~20% Shareholding 3QFY24 4QFY24 1QFY25
premium to the 2-yr historical average PE multiple on 1-yr forward basis. We Promoters 57.8 57.8 57.8
believe that the multiple is fair and adequately captures: (1) ~19% EPS CAGR DIIs 18.6 18.9 19.7
over FY24-FY26E, and (2) post-tax RoCE of ~32% in FY26E. We believe it is a
FIIs 11.0 11.6 11.5
long-term compounder and should be accumulated at every dip
Others 12.6 11.8 11.0
1QFY25 Performance Update: Revenue grew by 6.5% YoY to Rs40.1bn Pro pledge 0.0 0.0 0.0
(+0.2%/+1.7% vs NBIE/Consensus Est.) on account of strong performance in
domestic business across segments. EBITDA margin expanded by 18bps to 9.5% Financial and Valuation Summary
(+71bps/+50bps vs NBIE/Consensus Est.). Adj. PAT increased by 2.6% YoY to Particulars (Rsmn) FY23 FY24 FY25E FY26E
Rs2.0bn (+9.3%/+9.4% vs NBIE/Consensus Est.). Net Sales 143,363 161,530 187,877 220,089
Conductor Segment Update: Revenue grew moderately by 9.1% YoY to Rs19.4bn Growth YoY (%) 53.9 12.7 16.3 17.1
- as demand in the US & Europe was impacted due to regulatory delays and Gross Margin (%) 22.7 22.4 25.5 25.8
competition. There was also delay in export shipments affected by container
EBITDA 12,269 15,223 17,075 20,635
availability tightness and increase in freight rates. Volume grew by 6.7% YoY to
EBITDA Margin (%) 8.6 9.4 9.1 9.4
48,619MT. Realization stood at Rs38,532/MT (-0.5% YoY). Exports declined by
38.6% YoY and Exports contribution stood at 29.5% vs 52.4% YoY. Premium Adj. PAT 6,377 8,251 9,474 11,654

Products’ contribution stood at 37.1% which was lower than expected – on account of Adj. PAT Margin (%) 4.4 5.1 5.0 5.3
execution delays. Order book at the end of 1QFY25 stood at Rs67.3bn, up 25.6% Adj. PAT YoY
151.8 23.3 14.8 23.0
Growth (%)
YoY.
Adj. EPS (Rs) 166.6 205.4 235.8 290.1
Oil Segment Update: Revenue grew by 6.1% YoY to Rs12.7bn. Volume grew by
ROCE (%) 49.0 41.1 38.2 42.9
5.9% YoY to 1,38,357KL. Realization stood at Rs6,935/KL (+14.9% YoY). Strong
ROCE (Post-Tax) (%) 36.6 30.7 28.6 32.1
demand for – a) Global Transformer Oil (volume up by 19.9% YoY), b) Automotive Oil
(volume up by 29.3% YoY), and c) Industrial Lubricants (volume up by 7.6%) YoY, ROE (%) 32.3 27.0 25.6 29.0

was offset by de-growth in White Oil & Process Oil due to lower demand + increased P/E 54.7 44.4 38.6 31.4
competition. Exports de-grew by 2.2% YoY and exports contribution stood at 45.0% EV/EBITDA 29.6 23.9 21.2 17.4
v/s 48.6% YoY. P/B 16.4 9.4 10.4 8.1
Cables Segment Update: Revenue grew moderately by 7.8% YoY to Rs10.4bn. Source: Bloomberg, Company, Nirmal Bang Institutional Equities
Exports declined by 30.6% YoY and exports contribution stood at 33.2% vs 51.5% Research

YoY. High inventory bases in the US led to a slowdown in exports. The US business Key Links – 1QFY25 Results | 1QFY25 Investor PPT
has shown gradual recovery sequentially in 2QFY25, with further acceleration
expected to come in 2HFY25. Order book at the end of 1QFY25 stood at Rs15.7bn,
up 68.9% YoY. EBITDA margin declined by 112bps YoY to 9.4% due to unfavourable Please refer to the disclaimer towards the end of the
product and geographical mix. document.

Natasha Jain, CFA, CAIA

Research Analyst
[email protected]
+91-22-6273-8110
 Institutional Equities
Exhibit 1: 1QFY25 Consolidated Performance
Particulars (Rsmn) 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25E 3Q25E 4Q25E FY24 FY25E
Net Sales 37,671 39,255 40,085 44,551 40,105 44,025 49,122 54,625 161,530 187,877
YoY Change (%) 21.8 21.3 1.8 9.1 6.5 12.2 22.5 22.6 12.7 16.3
Gross Profit 8,201 9,462 9,309 10,146 8,625 12,275 13,132 13,877 36,130 47,909
Margin (%) 21.8 24.1 23.2 22.8 21.5 27.9 26.7 25.4 22.4 25.5
EBITDA 3,462 3,498 4,051 4,267 3,756 3,907 4,353 5,059 15,223 17,075
YoY Change (%) 45.8 54.8 18.0 0.7 8.5 11.7 7.5 18.6 24.1 12.2
Margin (%) 9.2 8.9 10.1 9.6 9.4 8.9 8.9 9.3 9.4 9.1
Depreciation 272 282 288 315 311 347 351 398 1,157 1,407
Interest 697 1,031 1,128 1,011 904 985 1,000 1,057 3,866 3,945
Other income 139 188 210 275 162 258 156 374 864 951
Extraordinary Items - - - - - - - - - -
PBT (bei) 2,631 2,373 2,844 3,216 2,704 2,833 3,158 3,979 11,065 12,674
PBT 2,631 2,373 2,844 3,216 2,704 2,833 3,158 3,979 11,065 12,674
Tax 657 629 667 854 679 708 790 1,014 2,807 3,190
ETR (%) 25.0 26.5 23.5 26.6 25.1 25.0 25.0 25.5 25.4 25.2
Reported PAT 1,974 1,739 2,176 2,362 2,025 2,120 2,368 2,961 8,251 9,474
Adj. PAT 1,974 1,739 2,176 2,362 2,025 2,120 2,368 2,961 8,251 9,474
YoY Change (%) 61.2 69.4 30.7 (2.7) 2.6 21.9 8.8 25.3 29.4 14.8
Adj. EPS 51.6 45.4 54.2 58.8 50.4 52.8 58.9 73.7 205.4 235.8
Source: Company, Nirmal Bang Institutional Equities Research

Exhibit 2: 1QFY25 Segmental Performance

Particulars (Rsmn) 1Q24 4Q24 1Q25 YoY(%) QoQ(%) 3MFY24 3MFY25 YoY(%)
Net Sales
Conductors 17,742 23,280 19,358 9.1 (16.9) 17,742 19,358 9.1
Transformer & Specialty Oils 11,921 12,103 12,652 6.1 4.5 11,921 12,652 6.1
Cables 9,668 10,858 10,418 7.8 (4.1) 9,668 10,418 7.8
Sales Mix (%)
Conductors 45.1 50.3 45.6 45.1 45.6
Transformer & Specialty Oils 30.3 26.2 29.8 30.3 29.8
Cables 24.6 23.5 24.6 24.6 24.6
EBIT
Conductors 1,705 2,709 1,894 11.1 (30.1) 1,705 1,894 11.1
Transformer & Specialty Oils 727 513 922 26.9 79.9 727 922 26.9
Cables 1,019 1,142 982 (3.6) (14.0) 1,019 982 (3.6)
EBIT Margin (%)
Conductors 9.6 11.6 9.8 17 bps (185) bps 9.6 9.8 17 bps
Transformer & Specialty Oils 6.1 4.2 7.3 119 bps 305 bps 6.1 7.3 119 bps
Cables 10.5 10.5 9.4 (112) bps (108) bps 10.5 9.4 (112) bps
Source: Company, Nirmal Bang Institutional Equities Research

2 Apar Industries (APR)

 Institutional Equities
Key Concall Highlights:
Conductors Segment:
 Segment recorded healthy post open period forex EBITDA at Rs38,532 per MT.
 The management highlighted that towards the end of June there were delivery challenges on
account of export shipments affected by container availability tightness.
 New order inflow was Rs17.94bn. Pending order book remained at Rs67.25bn in which premium
product contributes 41.1%
 The management is confident about the absence of potential threat from capacities being added
by the competitors. It highlights that export business is not only price dependent but also past track
records and quality of products while project execution and also ESG contribution.
 Increase in import duties on aluminum based Chinese goods by US to boost export opportunities.
Import duty on these goods to rise form ~35%-60%
 Higher interest costs, regulatory hurdles and logistic issues impacting near term export business.
Logistic issues to normalize from 3QFY25.
 Expect volume growth of ~10% for FY25

Oil Segment:
 Strong demand for Transformer Oil, with double-digit growth rates observed for the quarter
 Total volume growth of 5%. Global transformer oil volume was up by 19.9% YoY, due to strong
demand and gain in market share from competitors. White oil and Process oil de-grew due to
lower demand and increased competition
 Export mix at 45.0% in Q1FY25 v/s 48.6% in Q1FY24
 The segment saw strong performance in this quarter recording post open period forex EBITDA at
₹ 6,935/KL
 Automotive oil volume had strong growth of 29.3% whereas industrial lubricants grew by 7.6%.
Growth came from B2B distributors and OEMs. Market share gain from some of the OEMs, new
product addition to ensure double digit growth
 De-growth of white oil and process oil attributable to foreign exchange and shipping challenges as
the majority of these product sales come from African countries

Cables Segment:
 Significant growth in the domestic Cables market due to renewable energy projects and B2C
business growth.
 Ex-US revenue grew 23.9% YoY. Domestic business grew by 48.4% YoY and export business
de-grew by 30.5%.
 Post open period forex EBITDA came in at 10.3% due to unfavorable product / geography mix
 Pending order book is at Rs15.71bn
 Tolpine growth guidance of ~25% and margins ~10%-12%.
 Expects demand from US to come in upcoming quarters. US imports ~20bn dollar of cables. India
export ~400mn dollar, does not see real competiton from Indian players.
 Despite hedging for raw materials, margin decline was observed on the back of product mix.
 Solar cables business was an outperformer and continues to see better inquiry. Order book for
cables is increasing expected to maintain upward trend for 2HFY25

3 Apar Industries (APR)

 Institutional Equities
Others:
 The company plans to incur ~Rs3.5bn in capex in FY25.
 Domestic business witnessed topline growth of 43.4% YoY. Export business de-grew by 25.9%
due to the high base of US revenue in Q1FY24. However, US business has shown a gradual
recovery in the current quarter as compared to the previous quarter with further acceleration
expected to come in the second half of the year. Export mix was 37.0% as compared to 53.3% in
Q1FY24.
 Copper and aluminum prices do not affect margins as they are completely hedged. But might
affect future order book depending on the capex push by the clients
 Red sea issues have cost freight rates to shoot up and hence sale towards UAE were impacted.
 Shipments of ~Rs2.7bn delayed due to logistics issues

Exhibit 3: Change in Earnings Estimates

Description FY25E FY26E
(Rsmn) Old New Change (%) Old New Change (%)
Net Sales 186,898 187,877 0.5 219,460 220,089 0.3
EBITDA 15,974 17,075 6.9 18,980 20,635 8.7
EBITDA Margin (%) 8.5 9.1 54 bps 8.6 9.4 73 bps
Adj. PAT 8,524 9,474 11.1 10,374 11,654 12.3
Adj. EPS 212.2 235.8 11.1 258.3 290.1 12.3
Source: Nirmal Bang Institutional Equities Research

Exhibit 4: Actual Performance V/S NBIE & Consensus Estimates

1QFY25 (Rs Mn) Actuals Our Estimate Deviation (%) BBG Estimates Deviation (%)
Net Sales 40,105 40,034 0.2 39,451 1.7
EBITDA 3,756 3,464 8.4 3,462 8.5
EBITDA Margin (%) 9.4 8.7 71 bps 8.9 50 bps
Adj. PAT 2,025 1,853 9.3 1,851 9.4
Source: Company, Bloomberg, Nirmal Bang Institutional Equities Research

Exhibit 5: Revenue Trend Exhibit 6: Margin Trend

Source: Bloomberg, Nirmal Bang Institutional Equities Research Source: Bloomberg, Nirmal Bang Institutional Equities Research

4 Apar Industries (APR)

 Institutional Equities
Exhibit 7: Conductor Segment Trend Exhibit 8: Conductors Volume and Realization Trend

Source: Bloomberg, Nirmal Bang Institutional Equities Research Source: Bloomberg, Nirmal Bang Institutional Equities Research

Exhibit 9: Oil Segment Trend Exhibit 10: Oil Volume and Realization Trend

Source: Bloomberg, Nirmal Bang Institutional Equities Research Source: Bloomberg, Nirmal Bang Institutional Equities Research

Exhibit 11: Cables Segment Trend

Source: Bloomberg, Nirmal Bang Institutional Equities Research

5 Apar Industries (APR)

 Institutional Equities
Exhibit 12: 1-Year Forward PE Trend

Average P/E = 12.4x

Source: Bloomberg, Nirmal Bang Institutional Equities Research Source: Bloomberg, Nirmal Bang Institutional Equities Research

6 Apar Industries (APR)

 Institutional Equities
Financials
Exhibit 13: Income Statement Exhibit 14: Cash Flow
Y/E March (Rsmn) FY22 FY23 FY24 FY25E FY26E Y/E March (Rs mn) FY22 FY23 FY24 FY25E FY26E
Net Sales 93,166 143,363 161,530 187,877 220,089 EBIT 4,466 11,226 14,066 15,669 18,989
% Growth 45.8 53.9 12.7 16.3 17.1 (Inc)/Dec in working capital (3,499) (1,245) (13,827) 7,225 (6,041)
Rm Costs 72,078 110,762 125,400 139,968 163,306 Cash flow from
967 9,981 239 22,893 12,948
operations
Gross Profit 21,088 32,601 36,130 47,909 56,783
Other income 325 375 864 951 1,000
Gross Margin (%) 22.6 22.7 22.4 25.5 25.8
Depreciation 978 1,043 1,157 1,407 1,646
Staff Cost 1,725 2,205 2,889 3,382 3,962
Tax paid (-) (531) (2,475) (3,016) (3,190) (3,923)
Other Expenses 13,918 18,126 18,019 27,452 32,187
associate income 0 (0) (6) (10) (10)
EBITDA 5,445 12,269 15,223 17,075 20,635
Net cash from operations 1,740 8,924 (761) 22,051 11,661
% Growth 31.0 125.4 24.1 12.2 20.8
Capital expenditure (-) (1,059) (2,320) (3,828) (3,500) (3,500)
EBITDA Margin (%) 5.8 8.6 9.4 9.1 9.4
Net cash after capex 681 6,604 (4,590) 18,551 8,161
Other Income 325 375 864 951 1,000
Interest paid (-) (1,406) (3,055) (3,866) (3,945) (4,402)
Interest 1,406 3,055 3,866 3,945 4,402
Dividends paid (-) (574) (1,531) (1,607) (1,808) (1,808)
Depreciation 978 1,043 1,157 1,407 1,646 Inc./(dec.) in total
398 513 1,014 - -
Profit Before Tax 3,385 8,546 11,065 12,674 15,587 borrowings
(Inc.)/Dec. in investments 299 (238) 435.20 - -
Tax 853 2,168 2,807 3,190 3,923
Cash from Financial
Reported Net Profit 2,532 6,377 8,251 9,474 11,654 (1,284) (4,310) (4,005) (5,753) (6,209)
Activities
Adj. Net Profit 2,532 6,377 8,251 9,474 11,654 Opening cash 2,218 2,666 5,301 6,460 8,053
Adj. PAT Margin 2.7 4.4 5.1 5.0 5.3 Closing cash 2,666 5,301 6,460 8,053 10,004
Adj. Eps (Rs) 66.2 166.6 205.4 235.8 290.1 Change in cash 448 2,635 1,159 1,593 1,951

Source: Company, Nirmal Bang Institutional Equities Research Source: Company, Nirmal Bang Institutional Equities Research

Exhibit 15: Balance Sheet Exhibit 16: Key Ratios

Y/E March (Rs mn) FY22 FY23 FY24 FY25E FY26E Y/E March FY22 FY23 FY24 FY25E FY26E
Share capital 383 383 402 402 402 Per Share (Rs)
Reserves 16,770 21,981 38,363 34,824 44,671 Adjusted EPS 66.2 166.6 205.4 235.8 290.1
Net worth 17,152 22,364 38,764 35,226 45,072 Book Value 427.0 556.7 965.0 876.9 1,122.0
Minority Interest 0 0 0 0 0 Valuation (x)
Long-term Loans 1,954 1,514 3,343 3,343 3,343 P/E 137.7 54.7 44.4 38.6 31.4
Total Loans 2,529 3,042 4,055 4,055 4,055 P/BV 21.3 16.4 9.4 10.4 8.1
Deferred Tax Liability EV/EBITDA 67.2 29.6 23.9 21.2 17.4
523 217 9 9 9
Net
EV/Sales 3.9 2.5 2.3 1.9 1.6
Liabilities 20,204 25,623 42,828 39,290 49,136
Return Ratio (%)
Gross Block 15,259 16,972 20,583 24,791 28,291
RoCE 24.4 49.0 41.1 38.2 42.9
Depreciation 7,084 8,127 9,284 10,691 12,336
RoCE (Post-Tax) 18.2 36.6 30.7 28.6 32.1
Net Block 8,175 8,844 11,299 14,100 15,954
RoE 16.2 32.3 27.0 25.6 29.0
Capital work-in-progress 383 991 1,207 500 500
RoIC 29.0 60.7 50.2 46.5 54.1
Intangible assets 639 663 647 647 647
Profitability Ratio (%)
Long-term Investments 305 543 108 108 108
EBITDA Margin 5.8 8.6 9.4 9.1 9.4
Inventories 21,387 25,756 28,645 34,487 40,400
EBIT Margin 4.8 7.8 8.7 8.3 8.6
Debtors 25,424 32,256 39,404 44,782 52,459
PAT Margin 2.7 4.4 5.1 5.0 5.3
Cash 2,666 5,301 6,460 8,053 10,004
Turnover Ratio
Other Current assets 7,096 7,823 8,388 11,273 14,306
Total Asset Turnover Ratio (X) 5.1 6.3 4.7 4.6 5.0
Total Current assets 56,573 71,136 82,897 98,595 117,169
Debtor Days 100 82 89 87 87
Creditors 41,225 52,063 48,131 66,915 78,388
Other current liabilities & Inventory Days 84 66 65 67 67
4,646 4,491 5,199 7,743 6,854
provisions Creditors Days 162 133 109 130 130
Total current liabilities 45,871 56,554 53,329 74,658 85,241
Solvency Ratio (X)
Net current assets 10,702 14,582 29,568 23,936 31,928
Net Debt-Equity (0.0) (0.1) (0.1) (0.1) (0.1)
Total Assets 20,204 25,623 42,828 39,290 49,136
Debt-Equity 0.1 0.1 0.1 0.1 0.1
Source: Company, Nirmal Bang Institutional Equities Research Interest Coverage 3.2 3.7 3.6 4.0 4.3
Source: Company, Nirmal Bang Institutional Equities Research

7 Apar Industries (APR)

 Institutional Equities
Rating track 2

Date Rating Market price (Rs) Target price (Rs)

17 September 2014 Buy 390 521
9 October 2014 Buy 406 521
7 November 2014 Buy 421 521
9 January 2015 Buy 393 521
10 February 2015 Buy 334 511
15 April 2015 Buy 377 511
21 May 2015 Buy 334 480
29 June 2015 Buy 380 480
8 July 2015 Buy 363 480
12 August 2015 Buy 415 509
12 October 2015 Buy 418 509
9 November 2015 Buy 426 512
8 January 2016 Buy 483 512
2 February 2016 Buy 500 598
12 April 2016 Buy 468 598
27 May 2016 Buy 490 598
12 July 2016 Buy 519 598
9 August 2016 Accumulate 535 600
13 October 2016 Accumulate 551 600
10 November 2016 Buy 561 690
10 January 2017 Buy 620 690
6 February 2017 Buy 657 770
14 February 2017 Buy 735 845
7 April 2017 Buy 784 845
1 June 2017 Accumulate 880 840
6 July 2017 Accumulate 770 840
14 August 2017 Buy 720 920
9 October 2017 Buy 772 920
3 November 2017 Buy 757 915
9 January 2018 Buy 852 915
31 January 2018 Buy 760 905
6 April 2018 Buy 770 905
1 June 2018 Buy 707 845
10 July 2018 Buy 696 845
14 August 2018 Buy 566 740
9 October 2018 Buy 573 740
5 November 2018 Buy 560 760
9 January 2019 Buy 624 760
31 January 2019 Buy 615 775
9 April 2019 Buy 672 865
31 May 2019 Buy 664 800
9 July 2019 Buy 570 800
13 August 2019 Buy 539 800
23 September 2019 Buy 563 825
7 October 2019 Buy 523 825
11 November 2019 Buy 521 705
9 January 2020 Buy 401 705
24 January 2020 Buy 409 630

8 Apar Industries (APR)

 Institutional Equities
26 March 2020 Buy 250 365
9 April 2020 Buy 299 365
29 June 2020 Buy 327 408
9 July 2020 Buy 337 408
10 August 2020 Buy 304 390
23 September 2020 Buy 288 420
9 October 2020 Buy 290 420
7 November 2020 Buy 300 405
7 January 2021 Buy 352 470
6 February 2021 Buy 373 530
9 April 2021 Buy 469 530
1 June 2021 Accumulate 523 520
28 July 2021 Accumulate 678 700
26 September 2021 Accumulate 647 700
02 November 2021 Accumulate 696 750
01 February 2022 Accumulate 695 750
21 February 2022 Accumulate 653 685
31 May 2022 Accumulate 691 705
1 August 2022 Accumulate 1,124 1,150
19 September 2022 Accumulate 1,196 1,335
06 November 2022 Accumulate 1,464 1,620
1 February 2023 Accumulate 1,690 1,880
28 February 2023 Buy 2,159 2,275
22 March 2023 Buy 2,295 2,275
09 May 2023 Accumulate 3,056 2,950
1 August 2023 Accumulate 3,782 3,960
27 August 2023 Accumulate 5,000 5,415
27 October 2023 Buy 5,165 6,075
30 January 2024 Buy 6,069 7,000
14 May 2024 Accumulate 8,340 7,980
30 July 2024 Accumulate 9,110 8,700

Rating track graph

10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
Jun-16

Jan-18

Jun-23
Jan-24
Jul-17

Jul-24
Apr-14

Mar-20

Apr-21
Aug-18
Feb-19
Nov-15

Dec-16

Sep-19

Nov-21

Dec-22
Oct-14
May-15

Oct-20

May-22

Covered Not Covered

9 Apar Industries (APR)

 Institutional Equities
DISCLOSURES

This Report is published by Nirmal Bang Equities Private Limited (hereinafter referred to as “NBEPL”) for private circulation.
NBEPL is a registered Research Analyst under SEBI (Research Analyst) Regulations, 2014 having Registration no.
INH000001436. NBEPL is also a registered Stock Broker with National Stock Exchange of India Limited and BSE Limited in
cash and derivatives segments.

NBEPL has other business divisions with independent research teams separated by Chinese walls, and therefore may, at times,
have different or contrary views on stocks and markets.

NBEPL or its associates have not been debarred / suspended by SEBI or any other regulatory authority for accessing / dealing
in securities Market. NBEPL, its associates or analyst or his relatives do not hold any financial interest in the subject company.
NBEPL or its associates or Analyst do not have any conflict or material conflict of interest at the time of publication of the
research report with the subject company. NBEPL or its associates or Analyst or his relatives do not hold beneficial ownership
of 1% or more in the subject company at the end of the month immediately preceding the date of publication of this research
report.

NBEPL or its associates / analyst has not received any compensation / managed or co-managed public offering of securities of
the company covered by Analyst during the past twelve months. NBEPL or its associates have not received any compensation
or other benefits from the company covered by Analyst or third party in connection with the research report. Analyst has not
served as an officer, director or employee of Subject Company and NBEPL / analyst has not been engaged in market making
activity of the subject company.

Analyst Certification: I, Natasha Jain, research analyst, hereby certify that the views expressed in this research report
accurately reflects my personal views about the subject securities, issuers, products, sectors or industries. It is also certified
that no part of the compensation of the analyst was, is, or will be directly or indirectly related to the inclusion of specific
recommendations or views in this research. The analyst is principally responsible for the preparation of this research report
and has taken reasonable care to achieve and maintain independence and objectivity in making any recommendations.

10 Apar Industries (APR)

 Institutional Equities
Disclaimer
Stock Ratings Absolute Returns
BUY > 15%
ACCUMULATE -5% to15%
SELL < -5%
This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. NBEPL is
not soliciting any action based upon it. Nothing in this research shall be construed as a solicitation to buy or sell any security or product, or to engage in or
refrain from engaging in any such transaction. In preparing this research, we did not take into account the investment objectives, financial situation and
particular needs of the reader.
This research has been prepared for the general use of the clients of NBEPL and must not be copied, either in whole or in part, or distributed or
redistributed to any other person in any form. If you are not the intended recipient you must not use or disclose the information in this research in any way.
Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. NBEPL will not treat recipients as
customers by virtue of their receiving this report. This report is not directed or intended for distribution to or use by any person or entity resident in a state,
country or any jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject NBEPL &
its group companies to registration or licensing requirements within such jurisdictions.
The report is based on the information obtained from sources believed to be reliable, but we do not make any representation or warranty that it is accurate,
complete or up-to-date and it should not be relied upon as such. We accept no obligation to correct or update the information or opinions in it. NBEPL or any
of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information
contained in this report. NBEPL or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter
pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. The
recipients of this report should rely on their own investigations.
This information is subject to change without any prior notice. NBEPL reserves its absolute discretion and right to make or refrain from making modifications
and alterations to this statement from time to time. Nevertheless, NBEPL is committed to providing independent and transparent recommendations to its
clients, and would be happy to provide information in response to specific client queries.
Before making an investment decision on the basis of this research, the reader needs to consider, with or without the assistance of an adviser, whether the
advice is appropriate in light of their particular investment needs, objectives and financial circumstances. There are risks involved in securities trading. The
price of securities can and does fluctuate, and an individual security may even become valueless. International investors are reminded of the additional risks
inherent in international investments, such as currency fluctuations and international stock market or economic conditions, which may adversely affect the value
of the investment. Opinions expressed are subject to change without any notice. Neither the company nor the director or the employees of NBEPL accept
any liability whatsoever for any direct, indirect, consequential or other loss arising from any use of this research and/or further communication in relation to this
research. Here it may be noted that neither NBEPL, nor its directors, employees, agents or representatives shall be liable for any damages whether direct or
indirect, incidental, special or consequential including lost revenue or lost profit that may arise from or in connection with the use of the information contained in
this report.
Copyright of this document vests exclusively with NBEPL.
*“Registration granted by SEBI and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to
investors."
Our reports are also available on our website www.nirmalbang.com
Access all our reports on Bloomberg, Thomson Reuters and Factset.

Team Details:

Name Email Id Direct Line

Rahul Arora CEO [email protected] -

Krishnan Sambamoorthy Head of Research [email protected] +91 22 6273 8210

Dealing
Ravi Jagtiani Dealing Desk [email protected] +91 22 6273 8230, +91 22 6636 8833

Michael Pillai Dealing Desk [email protected] +91 22 6273 8102/8103, +91 22 6636 8830

Nirmal Bang Equities Pvt. Ltd.

Correspondence Address
B-2, 301/302, Marathon Innova,
Nr. Peninsula Corporate Park,
Lower Parel (W), Mumbai-400013.
Board No. : 91 22 6273 8000/1; Fax. : 022 6273 8010

11 Apar Industries (APR)