From ₹11,779 to ₹5,028: This small-cap multibagger tumbles 57% in 4 months. Do you own?

Multibagger small-cap stock: Shares of Apar Industries, one of the leading manufacturers and suppliers of conductors, a wide variety of cables, specialty oils, polymers, and lubricants, have been caught in a downward spiral in recent months, closing each passing month in the red and struggling to bounce back.

After delivering stellar performance over the last four years, the stock has failed to sustain the same momentum in the current year so far. It ended the last three months in negative territory and has declined another 9.23% in April, taking its year-to-date fall to 51.26%.

From its record high of ₹11,779 apiece, touched in early January, the stock is now 57.31% below that peak, trading at ₹5,028 apiece. The decline began after investors were disappointed by the company's December quarter performance, which came in below Street estimates.

Analysts noted that FY25 has been a year of consolidation for the conductor business due to the normalization of realizations and margins, along with demand headwinds in export markets. Intense competition from China and supply chain disruptions led to lower export volumes. 

Between CY21 and CY24, the stock price soared from ₹349 apiece to ₹10,317, resulting in a massive gain of 2,856%. Despite the steep correction, the stock is still up 637% over the last three years and 1,568% over the past five years.

About the Company

Apar Industries is a small-cap stock with a market capitalization of ₹20,198 crore. It is a leading Indian company operating in the diverse fields of electrical and metallurgical engineering, offering value-added products and services in power transmission conductors, petroleum specialty oils, and power and telecom cables.

While the company reported a weak performance in the December quarter, Japanese brokerage firm Nomura maintained its 'Buy' call on the stock with a target price of ₹10,300.

According to the company’s shareholding data, promoters held a majority stake of 57.8% at the end of the December quarter, while foreign institutional investors (FIIs) and domestic institutional investors (DIIs) held 10.2% and 21.21%, respectively. The remaining 10.8% was held by public shareholders.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.