Turnaround bet: This small-cap multibagger stock rises 50% in May after months of being under pressure. Do you hold it?

Multibagger small-cap stock: While the Indian stock market extended its strong performance into May, some previously underperforming stocks have also begun to rebound and join the rally, with Apar Industries being one such stock.

After taking a severe beating from Dalal Street investors between January and April due to concerns over rich valuations, the stock has staged a stellar rebound in May—gaining 48% so far—and has emerged as one of the best turnaround stocks in recent months.

During this period, Apar Industries’ share price has risen from ₹5,603 apiece to ₹8,251, with most of these gains coming after its March quarter results (Q4FY525) surpassed Street estimates.

The company, on May 14, posted a record-high quarterly and annual revenue with growth across all business segments. Revenue for the March quarter rose 16.9% year-on-year to ₹5,210 crore, while full-year revenue increased by 15.0% to ₹18,581 crore. 

Notably, revenue from the US market surged in Q4 FY25, driven by a strong demand rebound, with revenue improving by 195.6% year-on-year and 48.1% sequentially, though it declined 5.0% on a full-year basis.

Segment-wise, the conductor business posted EBITDA of ₹41,430 per MT in Q4, while the oil business recorded EBITDA of ₹5,873 per KL in Q4 and ₹6,145 per KL for the year. The cable segment reported an EBITDA margin of 10.6% in Q4. 

Profit after tax for the quarter rose by 5.9% YoY in Q4 to ₹250 crore and surged 43.0% sequentially. However, full-year PAT was slightly lower, down 0.5% at ₹821 crore, as per the company's earnings filing.

Despite sharp correction, stock is still up 2,700% over 5 years

After ending 2024 with a strong gain of 70.44%, the stock failed to carry the same momentum into 2025. It began January with a steep 27% decline — its biggest monthly drop in 16 years — followed by continued weakness over the next two months, losing an additional 23% and 5%, respectively.

Despite a sharp recovery in the current month, the stock still trades nearly 30% below its all-time high of ₹11,799 apiece. However, when viewed through a long-term lens, the stock continues to deliver an impressive return of 2,700% over the past five years.

Apar Industries operates in the diverse fields of electrical and metallurgical engineering, offering value-added products and services in power transmission conductors, petroleum specialty oils, power & telecom cables, and house wires.

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.