Multibagger Stock: Apar Industries Ltd.
Apar Industries Ltd.
Multibagger Stock: APAR Industries Delivers a 1200% Return in Just 3 Years, Turning ₹1 Lakh into ₹13 Lakh
In the world of investing, a multibagger stock is one that delivers exceptional returns, often growing many times over in a relatively short period.
APAR Industries, a prominent name in the conductor, renewable cable manufacturing, and specialty oils sectors, has emerged as a standout performer in recent years.
In the span of just three years, the stock has delivered an astonishing 1200% return, transforming an initial investment of ₹1 lakh into a staggering ₹13 lakh.
As of November 2024, the stock price of APAR Industries has surged from ₹677 in November 2021 to ₹8837, marking a remarkable 13-fold increase.
This exceptional growth trajectory has caught the attention of both seasoned investors and newcomers looking for high-growth opportunities.
In this article, we’ll take a deep dive into APAR Industries’ business, recent performance, and future prospects to understand why this stock has delivered such outstanding returns.
Company Overview: A Legacy of Innovation and Leadership
Founded in 1958, APAR Industries has built a strong reputation for itself as a leader in the manufacturing of conductors, specialty oils, and renewable cables.
Over the decades, the company has expanded its footprint across more than 140 countries, positioning itself as a global player in its sectors.
APAR is the world’s largest conductor manufacturer, the third-largest transformer oil manufacturer, and India’s largest producer of renewable cables.
Beyond its leadership in these core areas, APAR also manufactures a wide range of specialty products, including specialty oils, lubricants, automotive products, and polymers, with more than 350 unique product grades.
These products are integral to various industries, from power transmission to automotive and industrial applications, making APAR Industries a critical part of global supply chains.
The company has continuously focused on innovation and expansion, which has helped it maintain a competitive edge.
APAR’s ability to scale production, enter new markets, and diversify its product offerings has allowed it to stay ahead of the curve, contributing significantly to the stock’s robust performance.
Unbelievable Growth: A 1200% Surge in Three Years
When it comes to multibagger stocks, APAR Industries has proven itself to be a shining example.
From November 18, 2021, when the stock was priced at ₹676.95, to November 18, 2024, when it closed at ₹8837, the company has delivered a 1205% return.
This exponential growth is not only a testament to the company’s solid fundamentals but also a reflection of the broader market’s confidence in its future prospects.
The scale of growth is truly impressive. To put this in perspective:
- ₹25,000 invested in APAR Industries’ stock in November 2021 would now be worth ₹3 lakh.
- ₹50,000 would have appreciated to approximately ₹6.5 lakh.
- ₹1 lakh invested at the same time would have turned into ₹13 lakh, delivering a 13-fold return.
These returns are far beyond what most investors expect from their portfolios, making APAR Industries one of the most rewarding stocks in recent years.
This kind of performance is rare, especially when sustained over three years, making it a highly attractive option for those seeking long-term growth.
Stock Performance and Market Outlook
Though the stock has seen an 8% correction in the past two weeks, APAR Industries remains a strong contender in the market.
The company’s stock reached a 52-week high of ₹11,024.95 on October 16, 2024, highlighting its potential for further growth in the coming months.
Despite the recent dip, the overall performance of the stock suggests that it is positioned for long-term gains, with investors remaining optimistic about its future.
As of the end of September 2024, the company’s promoter holding stands at 57.77%, which is a positive indicator of confidence from the company’s founders and management team.
Strong promoter ownership often correlates with better governance and a long-term strategic outlook, further instilling trust in the company’s future.
APAR Industries’ market capitalization is now close to ₹35,500 crore, a significant milestone that places it among the leading players in the Indian manufacturing space.
This robust market cap is a clear reflection of the company’s financial strength and the growing demand for its products globally.
Financial Performance: Consistent Growth and Profitability
The company’s financials have also been strong, with consistent year-on-year growth in revenue and profits.
In the Q2 FY2024 results, APAR Industries reported a 18% growth in consolidated income, which reached ₹4677.29 crore, compared to ₹3943.50 crore in the same period in the previous year.
This increase in revenue showcases the company’s ability to scale and meet growing demand for its products.
More impressively, the net consolidated profit rose by 11%, from ₹173.87 crore in September 2023 to ₹193.38 crore in the same period in 2024.
This growth in both top-line revenue and bottom-line profit reflects APAR’s ability to maintain healthy margins while expanding its market share, a crucial factor for sustaining long-term growth.
Strategic Expansion Plans: Strengthening the Core Business
A key driver of APAR Industries’ future growth is its ongoing capacity expansion plans, particularly in its Continuous Transposed Conductor (CTC) business.
On November 18, 2024, the company announced plans to expand its CTC production capacity threefold.
After the expansion, the company’s total annual production capacity for CTC will gradually increase to 20,490 metric tonnes, significantly boosting its ability to meet rising demand in the power transmission sector.
This expansion will not only strengthen APAR’s position in the global market but also enhance its competitive advantage, as the demand for energy transmission and infrastructure continues to grow worldwide.
The Road Ahead: Long-Term Growth Potential
Looking ahead, APAR Industries is well-positioned for continued success. With its diverse product portfolio, ongoing capacity expansions, and solid market presence, the company is likely to benefit from several long-term trends, including:
- Increased demand for renewable energy and power transmission infrastructure, which will drive growth in APAR’s conductor and renewable cable businesses.
- Expansion into new markets, as the company continues to strengthen its international footprint.
- Innovation in specialty products, which will enable APAR to stay competitive in high-demand sectors like automotive and industrial manufacturing.
While short-term fluctuations in the stock price may occur, the long-term outlook for APAR Industries remains exceptionally strong, making it an attractive stock for investors with a focus on growth and stability.
Final Remarks
APAR Industries has emerged as one of the most profitable stocks in the Indian market, delivering a 1200% return over the last three years.
With its strong financials, ongoing capacity expansions, and leadership in key sectors, the company is well-positioned to continue its upward trajectory.
For those who invested in APAR Industries three years ago, the journey has been nothing short of remarkable, turning ₹1 lakh into ₹13 lakh.
As the company moves forward, its innovative approach, market leadership, and strategic expansion plans ensure that it remains an attractive option for long-term investors looking to capitalize on its continued growth.
