The analyst noted that the company’s strong returns and robust balance sheet support its long-term outlook, although commodity price fluctuations and elevated valuations remain key risks.
Apar Industries has emerged as one of the standouts in India’s electrical and power sector. The company specializes in oils, conductors, and cables — all essential for power transmission, renewables, automobiles, and industrial applications.
SEBI-registered analyst Pradeep Carpenter said these strengths put Apar in a sweet spot to benefit from India’s energy transition and infrastructure boom.
Fundamental View
The company has provided consistent performance, with earnings per share of ₹219, a price-to-earnings ratio of 35.21, and a price-to-book value of 6.9.
The returns are also robust, with a return on equity above 25% and a return on capital employed above 30%. Its debt-to-equity ratio is at a comfortable level, indicating a strong balance sheet.
Business Outlook And Risks
Carpenter pointed out that Apar is drawing strength from several themes, with more spending on power infrastructure, global demand for high-quality conductors and specialty oils, and government support for renewables and electric vehicles.
He also flagged a few watchpoints. Fluctuating prices of copper and aluminum could weigh on margins, currency volatility could hit exports, and its rich valuations may limit how much the stock can move in the near term if earnings slow.
Technical View
From a trading perspective, the stock has a swing low at ₹4,308 and a swing high at ₹9,905, with a critical Fibonacci support zone at ₹7,767.
Currently, it is trading at ₹7,732, which is close to that level. The 200-day exponential moving average (EMA) at ₹7,908 will be important to watch for confirmation of a breakout.
Carpenter noted that the broader weekly trend remains bullish, and with the daily relative strength index (RSI) at 29, the stock appears oversold and is due for a potential reversal.
Trading Strategy
Carpenter said that if the stock sustains above ₹7,925, it could attract fresh buying momentum and rally toward ₹9,800 and possibly even up to ₹11,750. He advised investors to set a stop-loss at ₹6,400 to protect against downside risk.
In his view, Apar’s strong fundamentals, combined with a supportive chart setup, make it a stock worth considering once it clears the breakout level, particularly for investors with a medium- to long-term horizon.
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘bearish amid ‘normal’ message volume.
Apar’s stock has declined 25% so far in 2025.
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