Saturday, September 5, 2009

Apar Ind.........cmp..Rs .141.00.......A Gem in Making....

I have written that SRF Ltd is a multibagger in making.I have read somewhere that one of the stock market gr has come out with a buy report on SRF Ltd.
  • I have no doubt in my mind that SRF Ltd is a multibagger in making along with some other calls like Lumax Ind,Kalyani Forge,Tin Plate which I have mentioned here , not to mention TRF which I wrote here that it is a buy even at Rs 337 and it is XB now and the price is Rs 450.Hence even if someone sells now the original holding he still remains in profit and still have Bonus FREE...

Well, I am today here for writing on Apar Ind.I have mentioned this stock many times here as a BUY.I do not know anyone was convinced about this co and gohead and bought it.When I started recomending it here it was around 70.It has already doubled.
I know many readers just waits for more I write on certain stocks and only then they will buy.But that is not possible for me ,to write in detail on every stock.

Here is some snap shot of Apar Ind.

Read on:

Apar Industries Limited, founded by Late Mr. Dharmsinh D. Desai in the year 1958 is one among the best established companies in India operating in the diverse fields of electrical, metallurgical and chemical engineering. Over the ensuing years it has evolved to be a 500 million US Dollar diversified company offering value added products and services in Power Transmission Conductors and Petroleum Specialities.
A technology – driven and customer – focused vendor to some of the most brand-enhancing power companies in India and abroad, Apar has strengthened the business of its customers through proactive product development, timely product delivery and superior product attributes by reinforcing product innovation, cost leadership and premium quality and living its vision ‘Tomorrow’s Progress Today’ resulting in Reliability, Respect, Reputation and Repeat business across manufacture of Speciality Oils and Power Conductors.

Apar Industries Ltd. headquartered in Mumbai, India with production facilities spread across Rabale (Maharashtra), Silvassa (Union Territory of Dadra Nahar Haveli) and Nalagarth (Himachal Pradesh).
Apar’s Conductor Division started in 1958 with the technical know–how from Alcan (Canada) and Properzi (Italy) is the largest producers of POWERLINE Aluminium and Alloy Conductors, in Asia, with strategic partnership and supply relationships with the top EPC Contractors in the World. The aluminium conductor division manufactures all types of bare overhead aluminium conductors and GS earth wires.
Apar’s Speciality Oil business established in 1969 with the technical know-how from Sun Oil Company (USA) is a pioneer and largest producers of POWEROIL Transformer Oils in Southeast Asia. The division has five diversified product lines – Transformer Oils, White Oils & Liquid Paraffins, Industrial & Automotive Oils and lubricants, Rubber Process Oils and Ink Oils.
In the year 2007-08 Apar established a strong foundation for Automotive Lubricants under a license agreement with ENI of Italy to manufacture and market high-end automotive and speciality industrial lubricants under the AGIP brand in India.
Recently, Apar acquired a strategic stake in
Uniflex Cables Ltd. a manufacturer of wide range of power and telecom cables, listed on BSE.
Over the last few years, Apar graduated to the hub-and-spoke model setting up storage distribution and processing facilities in Sydney (Australia), Gebze (Turkey) and Durban (South Africa), significantly improving our proximity to consuming global markets.
All of Apar's manufacturing facilities are accredited with ISO 9001 - 2000 & ISO 14001 - 2004 Quality Management Systems.
Apar Industries Ltd., a dynamic proxy of the Indian power sector’s growing potential deriving around 75 % of its revenues from this industry through key building blocks, aims to graduate from being a participant in India’s infrastructure growth to an infrastructure driver in the world’s second fastest growing economy.

Aluminium Conductors

Located at Silvassa ( D.N.H ) and Nalagarh ( Himachal Pradesh ), APAR is the second largest producer of Aluminium Conductors in India with 23 % market share and among the top five in the world. Leadership reflected in capacity expansion of aluminum conductors including alloy rods from 54,820 TPA in 2004-05 to 82,840 TPA in 2007 – 08 to emerge as the world’s fifth largest in this line of business.
APAR’s competence is derived from five decades of experience and insight into the product industry, manifested in an ability to presage product developments, evolution of customer needs, insights into technologies, global shift in supply, consumption of customer growth plans, forming a significant body of intellectual capital and a formidable competitive barrier.
Aluminium alloy rod and conductors were developed first in India by Apar through its own R&D initiatives. Factors that enabled Apar to emerge as the lowest – cost producer of aluminium conductors in the world include increase in the installed capacity, strategic location of manufacturing facilities in favorable geographies, tax jurisdictions, backward integration and increased productivity. Apar’s backward integration enables it to make complete range of aluminium conductors by altering chemical properties at the alloying stage and tailoring products to match customer needs.
Apar manufactures a full range of POWERLINE brand:
• EC Grade Aluminum Wire Rods,• Aluminum Alloy Wire Rods (6201 Alloy Rod in T-4 & M temper - online solutionied)• AAC (All Aluminium Conductors), • ACSR (Aluminium Conductor Steel Reinforced), • ACSR/AW (Aluminium Conductor Aluminium Clad Steel Reinforced), • AACSR (Aluminium Alloy Conductor Steel Reinforced), • AACSR/AW (Aluminium Alloy Conductor Clad Steel Reinforced)• AAAC (All Aluminium Alloy Conductors), • High Temperature Low Sag (HTLS) TACSR Conductors,• High Conductivity Alloy conductors AL-59 etc.• ACAR (Aluminium Conductor Alloy Reinforced)• Guy Wire / Stay Wire / Galvanized Steel Earth Wire (GSW)• Mechanical Grade Alloy Wire Bundles (T – 81 temper)
Over the years Apar has strengthened its product mix through a shift from AAC and ACSR to value added alloy based conductors. These high temperature conductors are capable of carrying up to 50 % additional power load compared with the other varieties which can substitute creation of parallel transmission lines in land- starved pockets, saving sizable capital investments.
Being the largest exporter of aluminium conductors from India, Apar has earned superior brand recognition and approval status among customers and utilities in India and other developing economies. It is recognized as a registered export house by the Indian Ministry of Commerce, exporting directly to power utilities in Asia, Africa, Europe, the Middle East and the US, along with reputed international turnkey contractors.
Apar enjoys the reputation of being a reliable long-term supplier in a market marked by fluctuating raw material availability and cost spikes. It supplies to all the top 25 turnkey operators in the world and also to all the leading utilities in Asia and Africa.
Admitted as a member of the standardizing committee formed by the Bureau of Indian Standards, Government of India for preparing National Standards ( ISI ) for the transmission & distribution conductors up to 800 KVA and the standardizing committee formed by the Rural Electrification Company Ltd., Government of India. Nominated twice ( consecutively ) to represent India as a national delegate in the Technical Committee of IEC in New Delhi and Kyoto.Conducted independent type tests successfully at internationally approved testing laboratories in NETFA -South Africa, CESI - Italy, EDF - France, ERDA - Vadodara, India, NSIC - Kolkatta, India, CPRI -Bangaluru, India and Tag Corporation - Chennai, India for conductors of 500 kV HVDC & 800 kV AC transmission system and also for distribution conductors of Metropolitan Electricity Authority, Bangkok.

My Comments:

Apar Ind has a turnover of Rs 2500 cr ,means $500 millions.The Mcap of Apar Ind is 450 cr and hence we can say that a 2500 cr co is available at just 1/5 price. A co which is a dominant player in Speciality Oils, Transformers, Cables,Aluminium Conductors is going abegging.One can buy this company doling out Rs.450 cr and he becomes the owner of 2500 cr turnover co.....Isn't that is great buy....?

It is definately a great buy even at this level as almost 64% of the stake is held by promoters and 27% is held by private corporate bodies.Means total 91% stake is with promoters and big institution.So what is left with Public?Only 9%......and I think I have not to write what one needs to do now with Apar Ind.It is a Screaming BUY.........Promoters has increased the stake in last few qr.

The June qr results has come fentestic with an qr eps of 7....


  1. Dear Rajeev,

    I have a question about US market.

    Do I need to worry anything about KDKN(Kodiak Energy) for its Southbound journy?


  2. Hi Rajeev,

    A report on CMIE website , says that companies dealing in Aluminium will not do good performance for FY09-10.
    Can you pls suggest how apar ind fairs wrt that?

  3. Hi Rajeev,

    Recently I came about a news on a penny stock "sanraa media" about its joint venture with a US based company.
    The scripts 52 week high is near 28 and it is currently trading at 1. It is constantly trading in upper circuit for the 5 to 10 days. I hope it is a multibagger.

    I would like to hear your expert opinion on this.


  4. Hi Om,
    Aluminium Conductors are usually used in Power Transmission Towers Grid etc.If CMIE has come out with the report then I think it is dubious.I think the demand should grow.
    Moreover Apar is the lowest cost producer of Aluminium conductors and that is an added advantage for it.
    I would like to know what u think about my opinion....

  5. Sure Rajeev,
    A report dated 5th Aug says " Aluminium companies to witness steep fall in net sales and profits in 2009-10" ..
    And today 7th late evening published report reads "Aluminium production growth revised upwards" ..
    But thanks for the great post.. i studied your post, done research on couple of websites.. and to me it feels BUY call..I would enter in it on Friday.

  6. a mistake can also earn you something.....

    I bought lumax auto instead of lumex industry. I was just browsing throught the messages and i realised that i bought lumex @ 32. Then I checked the price it is 42.5 upper freeze today.....

    something great....

  7. Hi Rajeev

    I feel APAR should get into 4 figures by 2012. Am I having a realistic target. What's your opinion? and also I have heard company is expanding its conductor division by installing its plant in Orissa. Can you confirm this bit of news, and also UniFlex will be turnaround by end of current fiscal.



  8. Sandeep,
    Lumax Auto also comes in the same gr and so is Lumax Techno.One can buy those stocks as well.
    But the real return will come in Lumax Ind.

  9. Dear Amit,
    The target u have projected may get achieved because in last bull run Apar has not run at all.
    Yes, they have expanded the capacity and Uflex can turnaround in a years time.

  10. Dear Vasanth,
    One of my friend recomended me Sanra@14.After that it went to 40 and more something.Not sure exact figure.Then it got spiltted.It looks good now.
    But keep a watch on Cat Vision Product.....

  11. Dear Dhiman,
    I think KDKN should well in LT.....
    Send me ur email id at my id , I will send u report on KDKN....

  12. Hi Rajeev:

    Any other stocks you have been following or would recommend in US. Can you comment on BONU (Bio Neutral)


  13. Hi Rajeev

    Thanks for the reply. Kindly go thru this link to see the strong foundations of APAR

    I feel if the 1st quarter EPS is 7 Rs and for all remaining 3 quarters it gets EPS of 15 Rs. then total EPS is 22 Rs. and at 15 PE it should be 330 by year end. Am I right, and also with Uflex turning around by 2010. It will contribute both to topline and bottom line thereafter and I have read somewhere APAR is targeting turnover of 1000 Crores from Uflex. So I feel APAR should touch 4 figures in 2012. Moreover, Reliance Capital has bought 5-6% stake in the company at 165 Rs. in september 2008.

    Kindly reply.



  14. Dear Hiren and Dhiman,
    Keep a watch on Arena Pharma Inc(ARNA).....

  15. Thanks Rajeev. It is really amazing the speed at which you respond to all the questions.

    The promoter shareholding is looking weak in catvision product. Do you expect anything out of the AGM to be held later this month? The company was started in 1985. But the growth is not that much encouraging considering the period. I am not getting any hints from announcements too. Please help.

  16. Hi Rajeev

    I feel whatever you have written on APAR is from its website. Which anyone can read, I would appreciate if you can let us know the information on which APAR's future performance is based. I feel in stock market information is the key. If you have correct info at first you tend to gain the most. I am still awaiting your reply on my previous post.



  17. Dear Amit,
    Readers even don't look at the website.Another thing is one need to take clue from what is written there.
    Anyother information if I can have , anybody can have because I far far off India and hence the only way I get information is through Internet and that anybody can do.
    It is a matter of focusing and how much one can find it out from various sources through internet.Remember I am just like One Man Army.I have no one to get help from.I do it singlehandedly.
    Uptill now no one was focussing on Apar Ind.Tell me how many knows about the credentials of Apar Inds?I have brought it to the notice that this is one stock which has enormous growth potential , which can be read through what I have copied from website as you say.
    But the catch is I brought it out...

  18. I appreciate this Rajiv.

    If possible Can I speak to you over phone.

  19. Dear Vasanth,
    Any stock in IT sector , u will always find low promoters holding.So while looking at IT stock forget promoters holding.
    Cat Vision Product is developing security system and India will need it more in next decade.
    There are others like Micro Techno,which is also one of my favourite since long.There is one other where I think Kapil Dev the cricketer is holding some stake, I forget the name.
    So try to find out info on Cat Vision.Go to website and try to analyse and then take a call.What I do is , I put stocks which are undiscovered....

  20. Rajeev

    If you wish you can mail me your number at and I will call u right away. Value investing is a passion for me. to say the least.

  21. Hi Rajeev

    Any opinion on the link I send in the afternoon on APAR.

  22. amit,my id is written at my blog....send me a mail

  23. Amit, am not able to find any info on Apar on this page

  24. Hi Rajeev

    Thanks for the reply. Kindly go thru this link to see the strong foundations of APAR

    I feel if the 1st quarter EPS is 7 Rs and for all remaining 3 quarters it gets EPS of 15 Rs. then total EPS is 22 Rs. and at 15 PE it should be 330 by year end. Am I right, and also with Uflex turning around by 2010. It will contribute both to topline and bottom line thereafter and I have read somewhere APAR is targeting turnover of 1000 Crores from Uflex. So I feel APAR should touch 4 figures in 2012. Moreover, Reliance Capital has bought 5-6% stake in the company at 165 Rs. in september 2008.

    Kindly reply.



  25. Yes Amit,
    I know that Apar Ind is a cash rich co and that is a very big advantage for them.It is due to this that they were able to buy Uflex Cable....
    Future is definately brigth for Apar Ind.

  26. Something is definitely cooking in this counter. It is either company's new plant at Orissa or buying Coal Mines.

  27. hi Rajeev,
    i totally agree with you regarding the security companies like cat vision and micro techno. They have huge untapped potential. but i read alot about Micro Techno's promotors losing money by issuing warrents on Moneycontrol Meessage board. I am a bit confused. can you please let me know if its still a value buy?
    Thanks in advance

  28. Dear Vikas,
    That is why I wrote about CatVision Product.It is cheap and growth is there.Why buy high priced Micro?
    If Catvision even touches 50, it is more then 3 times from here....

  29. Dear Mr. Desai

    What is your short term target for Apar and also what it should be 1 year from now. Pls. Reply.



  30. Hi Rajeev,
    Regarding the CMIE report, i would just like to spot that APAR uses aluminium as a key raw material along with crude oil for its products. The aluminium prices (which have risen in past some months) are set to at best reamin at these levels and may also go down as thi industry is plagues by overcapacity globally.
    This spells good for a end product player like APAR as it PURCHASES aluminium and not sells it since it means that the company's raw material costs will remain low.
    I like this stock. It is a niche player in a booming business (power industry). An absolute buy.

  31. Dear Amit,
    I usually do not give targets.It is not wise to predict any price targets for any stock as no one know what is going to happen in next 6 months.
    I never look at a stock for ST.
    But still if one can see that after I recomended Apar Ind @ 141 on 5 th of Sep it is up now to RS 187 and closing at 179.That is a return of 27% within 1 month.
    5th Oct is still to come for a month to get completed.
    Future price projection depends on how the company will deliver.We just try to analyse things what can happen and if that happen then it becomes a multibagger.
    But untill it becomes a multibagger ,no one can say what can happen and predict the earnings.

  32. Dear navarun,
    I agree with ur view that Apar is Almu buyer and not seller for making the conductors for Power sector.
    Being a cash rich co, Apar ind is very nicely placed then any other co in this sector as they will not have to pay almost nil interest for any borrowings.
    And if u will look at the june result then u can see that the int cost has come down from 16 cr to 3 cr and that has been added in bottom line.
    It is a half a billion dollar co and about to become a billion dollar co.Apar Ind Mcap is still a mere 580 cr while Sales is 2500 cr which is 5 times greater then Mcap.
    Here I can say that , which also gives answer to Amit that , Apar Ind has the potential to become a 5 bagger from here on as Mcap is 5 times less and as sales will increase the valaution will also go up.But these are mere projections.
    I reserve my right to be wrong.

  33. Hi Rajiv

    Thanks for the input, but how long it will take for APAR to be a billion dollar company, do you have any insight on company's capex plan.

    I want to know if you track Ganesh Housing. Any views on it.



  34. Amit, No guess on when Apar will become a billion dollar co.
    Do not track Ganesh Housing.