Prabhudas Lilladher Maintains Hold on Apar Industries; Sets Target Price at ₹9,540

Prabhudas Lilladher interacted with the management of Apar Industries (APR) to assess the impact of US reciprocal tariffs, demand outlook, and business prospects. Management highlighted that tariffs would have little effect on the conductors segment, while cables (with ~20% US exposure) may see a marginal impact. Key drivers include: Conductors: Strong growth potential from India’s reconductoring opportunity. Cables: Targeting ~₹100bn revenue in 3 years, aided by energy transition and demand for specialty, power, and low-duty cables. Transformer Oils: Expected to sustain >10% revenue CAGR with robust margins, backed by APR’s dominant HVDC transformer oil market share. At 32.7x/29.4x FY26/27E P/E, the brokerage maintains a Hold rating with a SoTP-based target price of ₹9,540, valuing Conductors, Cables, and Specialty Oils at 35x/35x/12x FY27E earnings. Hashtags: #AparIndustries #PrabhudasLilladher #StockMarketIndia #EquityResearch #PowerSector #Cables #Conductors #SpecialtyOils