Multibagger stock surges over 350% in 1 year recommends 400% dividend, Q4 net profit quadruples

The largest producer of aluminium and alloy conductors worldwide is APAR Industries.third-largest producer of transformer oil worldwide. Since its founding in 1958, APAR Industries has grown to become a reputable producer and supplier of conductors, a range of cables, specialty oils, polymers, and lubricants.

The Board of Directors have “Recommended Dividend @ Rs. 40/- (400%) per equity share of Rs. 10/- each fully paid on the equity share capital of Rs. 382,686,190/- (38,268,619 equity shares of Rs. 10/- each) for the financial year 2022-23. This shall be paid subject to the approval by the members at the ensuing Annual General Meeting of the Company.”

During the quarter ended March 2023, the company reported a net income of ₹4099.26 Cr up by 35.68% YoY from ₹3021.31 Cr recorded in the quarter ended March 2022. APAR Industries said its net profit stood at ₹242.73 Cr in Q4FY23 up by 193.83% YoY from ₹82.61 Cr during Q4FY22. The company’s EPS stood at ₹63.43 during the quarter under review up by 193.79% YoY from ₹21.59 during the year-ago quarter.

During FY23, the company’s net income reached ₹14389.62 Cr up by 53.92% YoY from ₹9349.06 Cr recorded in FY22. APAR Industries said its net profit stood at ₹637.72 Cr in FY23 up by 148.40% YoY from ₹256.73 Cr in FY22. The EPS of the company stood at ₹166.64 in FY23 up by 148.38% YoY from ₹67.09 in FY22.

The company’s conductor business segment revenue witnessed 41% YoY growth with volumes growing 46% YoY during Q4 and order book reached ₹5,124 crores in Q4FY23. EBITDA for the quarter came in at ₹282 crores.

The company’s speciality oils business segment witnessed 28% YoY revenue growth in Q4 and volume was up 12% YoY and 12 months' revenue stood at ₹4,656 crores in FY23. The company’s cable solutions business segment witnessed revenue growth of 38% YoY triggered by strong growth in exports and elastomeric products. Its 12 months revenue stood at ₹3,263 Cr in FY23 and order book during Q4FY23 reached ₹1,221 crores.

Commenting on the results as well as the outlook of the business Mr. Kushal N Desai, Chairman & MD of APAR Industries said, "The fourth quarter and Annual performance witnessed All-time high both on topl ine and on bottom-line. We had volume and profitable growth across all the three divisions as we reap the benefits of R&D, innovations and investments done over the past several years in line with the motto of the company to provide Tomorrow's solutions today"

The shares of Apar Industries were last seen trading on the NSE at ₹3,060 apiece up by 4.21% from the previous close of ₹2,936.40. The stock touched a 52-week-high of ₹3,288.00 on (08-May-2023) and a 52-week-low of ₹556.25 on (11-May-2022). In the last 1 year the stock has generated a multibagger return of over 380% and on a YTD basis, the scrip has rallied over 67% so far in 2023.