9 1. Apar Industries Limited (Apar) is engaged in business of manufacturing transformer & specialty oil and power conductor. It is expected to turnaround by FY12.6% 1Yr 24. we arrive at target price of Rs.kasat@nirmalbang.Equity Research (022-39268196) sunil. Apar acquired loss making company Uniflex (power cable business). In 2008.com Venu gopal Kasat.wk HI/Lo(Rs) Avg.com Anand Vyas.8 Margin % 1.9% 3Mth -10.5 .2% 37..7% 300 250 200 150 100 50 0   Valuation & Recommendation We expect Apar’s revenue to grow at a CAGR of 28. Crs) Free Float (%) 52.7 4. post completion of lower margin order.09 26. volume (Monthly) Face Value(Rs) Dividend (FY 10) Shares o/s (Crs) Relative Performance Apar Inds Sensex 25000 20000 15000 10000 5000 0 Feb-10 Apr-10 May-10 Mar-10 Aug-10 Sep-10 Jun-10 Jan-10 Jul-10 Nov-10 Dec-10 Oct-10 Jan-11 Apar Industries Ltd.1% (from current 6.8% -6. 214 Rs. stock is trading P/E of 5.1% 16. At CMP of 214.3 PE NA 8.8 145. Change in product mix with increasing contribution from high margin transformer oil will improve the overall margin in oil business. which will lead to improvement in profitability.4 1.0x.6% 20.53 86.8% -4. we expect EBIDTA margin to expand to 8. VP.6 300.3 137.6 Growth % 49. 354. FII) Corporate Bodies Public & others Sunil Jain. 44.4 and Rs.Initiating Coverage Recommendation CMP (19/01/2011) Target Price Sector Stock Details BSE Code NSE Code Bloomberg Code Market Cap (Rs.0% 3. Based on our estimated EPS for FY12 & PE multiple of 8.3 3699.5 Crs 37.8x for FY11 and FY12 EPS of Rs. The high growth opportunity in power sector will drive the volume growth of Apar in its all the three segment Viz.3% 12.9% 16.3% -15.6 3075.1 %) due to execution of higher margin orders & change in product mix. We recommend BUY rating on the stock. which is apparent in Q2FY11.6% 8. BSE_SENSEX Apar Shareholding Pattern as of 30/09/2010 Promoters Holding Institutional (Incl.7x & 4. Over FY10-12E. Research Associate( 022 39268175) venugopal.4 44.  1Mth -7.3 respectively.7% Year FY09A FY10A FY11E FY12E Net Sales 2637.1 2235.6 37.0 122.6% over FY10FY12E on account of strong demand for power conductors & transformer oil business. which were taken during the lean period coupled with improvement in volume will drive the profitability in conductors business.7 Margin % -0.9% 6.3% EBITDA 50.vyas@nirmalbang. BUY Rs. It is largest manufacturer of specialty oil (50% market share in transformer oil) with capacity of 337351 MTPA and second largest manufacture of power conductor (21% market share) with capacity of 114597 MTPA in India.9% EPS -1. Apar exited polymer business & acquired Uniflex Cable which provides cables to Power & other Industry.6% 8.5 2. Research Analyst (022 39268173) anand.4 201.85% 284-161 37094 10 50% 3.1% 6. Oil & Power cables.jain@nirmalbang. Investment Rationale  Return to normal margin in conductor business by FY12. Conductor.8 P/B 2.com 62.8% 4.0 5.23 Snapshot Incorporated in 1958. 37.1% 3.1% Adj PAT -3. 354 Power Ancillary 532259 APARINDS APR IN 689.

000 MW generation capacities and 38.a.000 KL p. Considering the current inter-regional power transfer capacity of 20. the corresponding investments in the transmission sector are expected to be augmented. According to Industry sources.12. of transformers which will give rise to the demand for transformer oil. NB Research) . providing an opportunity of Rs.323 MVA p.Initiating Coverage Apar Industries Ltd. Apar is well positioned to take advantage of the emerging opportunities with a 50% per cent market share in transformer oil segment. 315 billion in the conductor segment The 11th five year plan will generate a demand for 1. out of which Rs 1. Investment in Power sector in 11th Plan (Sources: Industry data. Investment Rationale Investment in Power Sector to Drive Growth According to the Central Electricity Authority (CEA).750 MW.370 be spent on transmission schemes providing an opportunity of Rs 315 billion ( 22%) in the conductor segment billion. The Ministry of Power plans to establish an integrated National Power Grid in the country by 2012 with close to 200. India’s power generation systems had an installed capacity of around 157. which results into 60-65 per cent of the transformer oil market accrued from the OEM segment. the requirement of transformer oil stands at 1.229 MW. The overall investment in the power sector in the 11th five year plan (across all the segments) is estimated at Rs 8.10.650 MW of inter-regional power transfer capacity.400 billion is planned to Investment in the power sector in 11th five-year plan is estimated at Rs 8.370 billion.a.

KEC International. on account of delay in the floating tenders. Capacity expansion. Order Book (Rs in Crs) Two tenders worth of Rs. We expect improvement in margins from next year due to execution of higher margin orders. Apar’s Power conductor business is likely to grow at 1176 Crs with export contributing 32% a CAGR of 33. Europe.000 0 Second largest market Share player with Sales Realisation (Rs) Apar’s volume has grown at a CAGR of 29% (FY06-09). PGCIL is largest domestic customer along with other domestic customer.9% from FY10-FY12E on account of increase in volume. Apar is also the largest exporter of Power conductors from India. It exports in the region of Middle East. current order book is around Rs.000 100. During the year. which would eventually of total order book. As on 30th Sept. 1158 Crs in conductor segment provides revenue visibility …….000 140. 2-3 years to sustain growth momentum.000 60.000 60. Power conductors contributed around 47% of the company’s sales in FY10.000 115. Other 25% domestic customers include Jyoti Structure. The management expects to complete this tranche of orders during the current financial year.Company data. Apar is ramping up its capacity from current 115000 MTPA to 155000 MTPA in next Total Order book of AIL is around Rs.075 100. Adani.000 80. Conductor-Volume& Realization 140. 10001200 Crs worth of orders from PGCIL 1500 1000 500 0 910 569 1093 1230 975 834 769 1083 1225 1158 (Sources: Company data. 5000 Crs is expected to come out in next 6-8 months.000 20. Africa etc and has presence in more than 43 countries.000 0 FY08 FY09 Sales Volume (MT) (Sources:. NB Research) FY10 FY11E FY12E 57. postponement in awarding of contract by customer. 1158 crs with export accounts around 36% share in total order book. ABB. mainly PGCIL.000 160.Initiating Coverage Apar Industries Ltd. We expect around Rs. NB Research) .715 75.000 120.000 40. Going forward.467 89.000 20. Latin America. except in FY10. L&T. result into revenue growth.000 40. A major chunk of export demand is likely to come from emerging markets of Asia & African region.000 120. Order inflow to drive growth & margin expansion. 2010.000 80. Apar is the second largest player after Sterlite Technologies in the Indian power conductors market with market share of 21%. Strong order book of Rs.000 100. the company is executing the orders which are of lower margins and were bagged during the global economic meltdown. Reliance and SEB’s etc.

000 60. It forms around 5-7% of the total cost of transformer.225 271.000 0 Apar is the only player who has got approval in 765 KV from both OEM & PGCIL.000 40.000 30.Volume & Realization Higher contribution from Transformer oil will lead increase in margin 350. White oil is used in FMCG & Pharma sector. The company also deals in industrial oil. Apart from incremental demand driven by OEM’s.000 300.000 150. Capacity augmentation. change in product mix mainly from transformer product line which in turn will lead to growth & improvement in margins.292 298.000 50.000 100. This is apparent from Q2FY11. The transformer oil market includes OEM’s as well as replacement market which include State electricity board & Private players.827 242. 1400-1500 Crs). We believe that order inflow from the conductor division is expected to pick up significantly due to huge investment in the T&D segment. NB Research) A change in product mix with increasing contribution from higher margin transformer oil will improve the overall margin in oil business. in the power sector. The oil business has grown at CAGR of 10% (from FY06to FY10). to be driven from OEM’s due to ongoing massive investments underway. Two tenders worth Rs. Oil.000 250.000 200.000 50. Apar is one of the leading suppliers to OEM’s as it is the only domestic player who has got approval in 765 KV from both OEM’s & PGCIL. It ranks among the top five manufacturers and marketer of transformer oil in the world with capacity of 153495 MTPA. the demand arising from replacement market is also significant as an existing transformer requires additional 5-10% oil every year.000 20. Oil business: Banking on transformer growth. Going forward. Leading manufacturer of transformer oil with around 55% market share Transformer oil is a highly refined mineral oil that is stable at high temperatures and has excellent electrical insulating properties. It is market leader with more than 50% market share in transformer oil market in India (total market size in India is around Rs.421 70.000 10. We expect revenue to grow at CAGR of 25. Sales Realisation (Rs) (Sources: Company data. strong order book coupled with expected pick up of order inflow would enable Apar to post revenue growth. rubber oil & automobile oil.000 0 FY08 FY09 Sales Volume(MT) FY10 FY11E FY12E 205. 1000-1200 Crs from the order of PGCIL. 5000 crs is expected to be out by PGCIL in next 6-8 months.7% from FY10-12E due to volume growth.819 195. . We expect Apar to grab at least Rs. we believe that the transformer oil segment will witness robust growth on account of demand.Initiating Coverage Apar Industries Ltd. The oil business contributes around 53% of Apar’s overall revenue with major share of revenue contributes from transformer & white oil.

Uniflex manufactures XLPE cables used in chemical and fertilizer Industry.29 -20.. Uniflex is engaged in business of manufacturing PVC/elastomeric cables.42 FY11E 300. 108 Crs accumulated losses of Uniflex in our estimates for FY11. underground cabling etc. with export Contributes 44% export.64 27. Elastomeric cables are used in defense.84 -20.66 -23. with an investment of Rs. order book Is around Rs 81 crs.67 (Sources-Company data.00 -3. mining Industry. Further. power cables & telecom cables. ship-building industry.5 Crs. which will result in lower effective tax rate.44 FY10 180. 84. offshore platform. st The power cables industry is around 3x as large as the conductor industry and both these business are complementary to each other.23 FY09 127. nuclear power plant etc. We have already factored the diluted equity in our estimates.60 -28. We expect Uniflex to post net revenue of Rs 300 Crs in FY 11 & 363 Crs in FY12. Uniflex is expected to merge with Apar at end of current financial year. Apar acquired 65% stake in Uniflex Cables limited (UCL).Initiating Coverage Signs of Turnaround in Uniflex cables Apar Industries Ltd. NB Research) In past 3 years. Following the expansion.65% of equity base of Apar. As on 31 Aug.56 FY12E 363. Uniflex to break even in FY12….60 8. over Rs 30-35 crs would be invested to double the present capacity.86 -14.06 -8. Apar is also focusing on diversifying into the areas where it can have synergies with existing business. UCL is also diversified into telephone cables. In 2008. On Market capitalization basis.60 -10. Uniflex is expected to break Even at cash level in FY21 Rs in crores Revenue EBITDA PAT Cash Profit FY08 106. the merger will lead to dilution of around 1. 400 Crs in next 2-3 years. Apar has already invested Rs 10 crs in expanding and modernizing plants and machineries of Uniflex Cables. the revenue of Uniflex has grown at CAGR of 16. We have accounted Rs. We believe Uniflex would start making profit from FY12 aided by growth in volume & decrease in operational cost.75 -27. Uniflex is expected to merge with Apar in current financial year. railways.04 -3. management expect turnover to increase to more than Rs.4%. . 2010.70 2. Apart from it.38 1.26 -26.

(Sources:. .3tn. Apar contributes half of India’s total export of aluminum power conductors & enjoys approvals from overseas utilities in markets like Africa.8tn. Apar also exports to south Africa. Export contributes 32% from total Order book.Provides huge opportunity The International Energy Agency (IEA) estimates USD 6. It is one of the few companies with product approvals from global transformer players & Utilities.1 trillion of investments in T&D sectors during 2005-2030 (transmission USD1. Middle East etc. distribution USD4. NB Research) Apar derives 36% of its total revenue from export market.IEA. International market:.Initiating Coverage Apar derives 28% of its total revenue from export market Apar Industries Ltd. mainly from African Region. China and India are expected to account for 40 per cent of this outlay. Turkey. Singapore & Australia for manufacturing & distribution of specialty oil.

NB Research) Business Description Apar has mainly two business segment: • • Power Conductors Oil Business Power conductors: Apar manufactures full range of ACSR (Aluminum Conductors Steel Reinforced).Initiating Coverage Business & Background Apar Industries Ltd. Apar is planning to ramp up the capacity of its conductor and cable segment. It has three manufacturing facilities at Silvassa. Singapore 100% Apar Chematek Lubricants Limited (JV) 50% Uniflex Cables India 65% Poweroil Specialities Products FZE UAE 100% Quantum Apar Speciality Oil Pty Ltd Australia (65%) Marine Cables & Wires Pvt Ltd. Apar is engaged in business of specialty oil. Apar entered into the power and telecom cable business by acquiring 65 per cent equity stake in Uniflex Cables for a total consideration of Rs 84. formerly known as Gujarat Apar Polymers was promoted by late Dharmsinh Desai. Apar Industries limited Petroleoum Specialities Pte. Nalagarh & Umbergaon. Apar Industries (Apar). which are more suitable for longer distance transmission line. In 2008. Incorporated in 1958. power conductor business & power cable business. Apar’s conductor division contributes around 47% to the total revenue. Ltd. It is also the leading manufacturer of transformer oil (132 KV to 765KV) in India.5 Crs. India 100% (Sources: Company data. . It is second largest manufacturer of power conductor with 21% market share. It is planning to increase its capacity to 155000 MTPA in next 2-3 years with capex of Rs. A major contribution to Apar’s conductor business comes from ACSR conductors. AAC (All Alloy Conductors) & AAAC (All Aluminum Alloy Conductors) with manufacture capacity of 115000 MTPA. 50-55 crs. It plans to fund this capex through QIP of Rs 100 crs.

rubber oil. NB Research) AGIP Business: Apart from manufacturing transformer oil.Company data. The division comprises following segments. industrial oil. L&T. Transformer oil contributes maximum revenue & has a 50% market share in India. Key Customers PGCIL.Initiating Coverage Products AAC AAAC ACSR Application Distribution of Electricity T&D of electricity T&D of electricity Apar Industries Ltd. The Brand is under manufacturing & license agreement from ENI S. The sales turnover of AGIP brand has increased by 31. The automobile oil is premium lubricant and sold under the brand name ‘AGIP’. NTPC.1% to Rs 122 crores in FY10 due to increase in volume. Jyoti.p. It has two manufacturing facilities located at Silvassa & Rabale. It ranks among the top five manufactures and marketers of transformer oil in the world. . Adani. KEC Intl. Apar also manufactures automobile oil. automotive oil and rubber oil with capacity of 337357 MTPA. Reliance Kalapatru Power etc. Outlook Investment in T&D sector will drive the demand for power conductors (Sources:. white oil. The oil business contributes around 53% of total revenue to the company. NB Research) Oil Business: This division makes transformer oil. The Rabale facility caters mainly to overseas market. Transformer Oil (52%) Used for Insulation & coolling in Transformers White oil/Pharma (18%) Rubber Oil (5%) Industrial & processOil (15%) Automotive Oil (10%) Used in Cement and Pharma Industries Used as basic material in Tyre & tube industry Industrial Applications Automobiles (Sources. ABB. white oil.A of Italy and distributed by the joint venture (50% owned by Apar).Company data.

Reinforced All Aluminum Alloy Conductors High temperature conductors Rabale (152686 MTPA). Raj Lubricants Finolex Cables. Business Segments Business Description Specialty Oils Offers various products that covers Power. NB Research) . while those for EBEAM cables are increasing. The project will entail almost Rs 20-25 crs of capex.Initiating Coverage Other Developments:• • Apar Industries Ltd. Automotive Oil. 43% 8% Plant Capacity Competitors Revenue (FY10) Contribution 49% (Sources: Company data. Torrent Cables. Umbergaon Silvassa (184655 MTPA) Nalagarh (29685). which is used in ships. The technology can be used for various other products by electron beam curing. The total number of tenders for conventional cables has been reducing y-o-y. Sterlite Technologies KEC International. Apar is focusing on the development of high margin products like high temperature conductors that increases the evacuation capacity by 50% to 100%. Automobile & Pharma 50% in Transformer Oil Conductors One of the largest conductors manufacture in India Cables Market wide range of Power and Telecommunication cables under the brand “Unicab” NA Market share Products 21% Transformer Oil. KEI Inds. Industrials FMCG. Silvassa (67412 MTPA). Conductor Steel Cables.beam) technology cable: It is a new generation cable. Industrial Conductors Aluminum Power Cables Telecom oil . design sector. Electron beam (E. NICCO. Umbergaon (17500 MTPA) Savita Oil technologies. white All Aluminum Elastomeric Cables oil. The significant property of E-beam is its resistance to temperature and fires. Rubber oil. railroads and will eventually be used for house wires and LV cables etc.

Volatility in Raw Material Prices: Aluminum and base oils are the two key raw materials.base oil and aluminum is imported. Delay in orders: PGCIL is one of the major customers of Apar. Foreign exchange fluctuation: Apar derives 30-35% of revenue from international market. large chunk of raw material . in turn our estimates. Apart from exports. Any significant volatility in the price of crude oil and aluminum can affect the profitability of the company.Initiating Coverage Risk concerns • Apar Industries Ltd. Any delay or postponement of orders by PGCIL will adversely impact revenue and. Prices of base oils are directly related to crude oil prices. • • . Any significant fluctuation in currencies could affect the profitability of company going forward.

2% 182 131 • Apar’s revenue grew by 36.0% 10.5 32.0% Sales Revenue EBIT Margins Sales Revenue EBIT Margins • • APAR reported the adj PAT of Rs 34.9 0.4 -0.1 33.6% 46.3 34.9% due to increased realization though there was volume de.8% to Rs 667. .1 24.Initiating Coverage Quarterly Analysis(Q2FY11) Standalone Financials Income from Operations EBITDA Other Income Depreciation EBIT Interest PBT Exceptional Expenses Tax.0 3. EBIT margin for the conductor segment has declined by 330bps on YoY basis.8 7.3 7. EBIT margin stood at 11.8% -32.1 0. due to lower margin order execution.5% -50 34 Q1FY11 625. up by 27.0% 12.4 1.5%.2 14.9 crores on YoY basis.5 crores in Q2FY11 as compared to Rs 23.8 7.5% on YoY basis. mainly driven by volume growth & increased realizations in both Conductor & Oil segment.0 3.9 0.5 5. up by 260 bps on YoY basis and 410 bps on QoQ basis.growth in both the segments.0% -10.0 24.2 Q2FY10 488. PAT Equity Capital (Rs.7 in Q2FY11 against Rs 7. EPS Ratios Operating Margins (%) Adj. YoYVar(%) 36.2 23.9% on YoY basis and 42.1 40.6 48.0 37.4% 18.4% 22.6% 46.5% 43.0% -5.0% 44.0% 5. Under oil segment.2% 0.0 10.7 7.7% on QoQ basis.3% 37. registering a growth of 46.3 7.0 36. On QoQ basis.3 10.9 52.0% 2.0% 6.2 34.4 3. NP margin (%) • Q2FY11 667.0% -15.0% 0.4 30. 500 400 300 200 100 0 Conductors 14.6% 44.3% 42.3 7.7 4.0% 4.2% 43.5% 117.0% 27.5 48.8 0.4 6.0 0.5 7.0% -20. Deferred Tax & FBT PAT Adj.0% 37. Increase in margin is on account of favorable change in product mix where higher volumes of transformer oil were sold during the quarter.6 25.8% 27.5% 0.7 34.0 3.0% 0.0% 10.7 10.5 crores in Q2FY10.9% 40.9 QoQVar(%) 6.2 5.9% 60.4 crores. revenue increased by 6.2% 43.9 -0.5 32.8 Apar Industries Ltd.0% Transformer Oil 400 350 300 250 200 150 100 50 0 15. Company reported adj EPS of Rs 10.0% 8. EBIT for the quarter stood at Rs 48.1 32.10) EPS Adj.3 in Q2FY10.7% 43.

Revenue to grow at a CAGR of 25. we expect PAT to grow at a CAGR of 29. 2. We expect Apar to gain significantly from huge spending on power sector in India and other emerging economies as the company is the leader in transformer oils business in India and the second largest manufacturer of transmission conductors.431 1.875 2.000 1.039 200 150 100 50 0 -50 -3.000 1.336 1.149 908 1.500 1.630 1.53% from FY06-09 led by strong demand from Power Sector.79 3. NB Research) We expect revenue to grow at a CAGR of 25. On profitability front.300 1. revenue declined in FY10 by 15% due to lower volume of sales.000 2.Company data.4% on account of higher realization & change in product mix.684 FY09 FY10 FY11E FY12E Conductor (Rs in crs) (Sources:-Company data. However.Initiating Coverage Outlook & Valuation Apar Industries Ltd. NB Research) Oil segment (Rs in crs) .348 147 4.58 1.000 4. 5. after dismal performance in last two years due to correction in commodity prices.7% on account of strong growth…. Strong Growth in Revenue in both Conductor & Oil Segment.000 3.417 17.49 Sales(Rs in crs) (Sources:.000 500 0 1..7% from FY10-12E due to volume growth & capacity augmentation in conductor segment.000 0 FY08 FY09 FY10 FY11E PAT (Rs in crs) FY12E 90.065 1.83 123. Apar‘s consolidated revenue has grown at a CAGR of 33.943 2.

Capital line.1% 3. higher contribution from transformer oil business. EBIDTA & Adj. change in product mix ie.9% due to decrease in sales volume & increase in raw material prices. NPM Margin (%) 10.8% FY10 6. we expect revenue to grow at a CAGR of 25. Margin to expand significantly in FY12…… Historically EBIDTA margin of Apar has been in the range of 6-7% (except in FY09. Valuation….Initiating Coverage Apar Industries Ltd. we assign a multiple of 8x for Apar. expected pick up in order inflow and greater focus on high temperature conductors. which would in turn would lead into improvement in margins. margin to scale up to around 8% on account of change in product mix & execution of high margin orders. In oil business.7% from FY10-12E due to volume growth. we except. we assign a target of Rs. which results in potential upside of 66. where it came down sharply to around 1.9% for FY10-12E due to higher capacity utilization.0% FY11E Adj. 700 600 500 400 300 200 100 0 01/04/2005 01/04/2006 01/04/2007 01/04/2008 01/04/2009 01/04/2010 Apar PER-5 PER-7 PER-10 PER-12 PER-15 (Sources:.6% 4. On Segmental Front… We expect conductor business revenue to grow at CAGR of 33.1% FY09 6.2%. resulting into lower effective tax. NPM 8.30 for FY12E.9% -0. due to Uniflex merger with Apar. the company would be enjoying tax benefit. NB Research) Based on our target P/E of 8x and our estimated EPS of 44.We recommend BUY rating on the stock .0% 1. Going forward.0% -5. except in FY09 due to global slowdown.1% 3.0% 0.0% 5. Historically the stock price of the company had traded at the multiple of 8-10x. 354 per share.9% FY12E EBIDTA Margin During FY11. Looking at the historical PE trend & future growth prospects of company.

5 0.6 1.) Operational Ratio EBITDA margin (%) Adj PAT margin (%) Adj EPS Growth (%) 2637.4 -70.0 31.10 617.5 0.4 -104. FY09A 32.3 4.5 32.4 0.9 215.0 -38.8 32.3 355.0 133.7 0.5 513.3 247.0 705.2 0.1 49.8 144.7 610.5% 5.2 -2.6% 0.4 17.4 -179.2 278.4 FY09A 50.7% 4.7 1.8 1.14 55.0 0.7 -18.3 251.86 -35.1 100% Sep.1 1657.0 0.0 610.28 32.7 0.95 FY09A 1.0 363.7% 51.5 9.6 2411.3 10.7 1.6 20.5 -45.05 9.9% -0.1% NA NA 86.0 -76.6 FY10A 137.0 0.2 424.7 0.3 26.Initiating Coverage Consolid P&L (Rs.9 FY09A FY10A FY11E FY12E 3699.3 16.2 -22.0 1441.6 2.5 4.7 24.9 6. In Cr) Operating Operating Income Change in WC Other Adjustment CF from Opeartion Apar Industries Ltd.9 335.5 4.8 123.0 705.2 1253.9 0% Dec.81 23.45 FY11E 6.1 454.0 4.4 0.3 16.3 -5.0% 0.04 22. 23.3% 16.02 0.9 488.4 0. Exp (not w/o) Net Worth Total Loans Minority Interest Deferred Tax Liabilities Total Liabilities Goodwill Net Fixed Assets Investments Current Assets Inventories Debtors Cash & Bank Loans & Adv Current Assets Current liability & Provision Working Capital Total Assets Cash Flow (Rs. in Cash Cash at beginning Cash at end Financial Health (Rs.1% 3.5 217.0 60.1 2.5 558.7 112.3% 50.7 0.0 368.0 0.00 230.0 -51.3 488.5 75.6 4.7 1976.8 79.0 -41.8 122.46 6.05 6. PAT Less: Share of Asso & MI Cons PAT Cons Adj PAT Eq share cap (in Cr.0 0.6 150.0 61.9 37.0 283.4 60.9 492.6% 201.4 0.3 144.3 -15.6 0.0 24.03 0.9 0.3% 300.March Share Capital Reserves & Surplus Misc.) Adj Diluted EPS Cash EPS DPS (%) Standalone Qtrly Revenue EBITDA Interest EBDT Dep Other Inc.0 122.01 40.7 6.8 49.4 -58.8 0.10 487.9 FY11E 32.7% 11.07 3.8 488. In Cr) Y / E .0 145.0 Financials 2235.5 1936.92 0.6 475.5 -136.2 186.5 220.8 2.0 0.1 224.7 123.1 -57.2% 16.7 32.0 0.9% 0.46 52.5 0.6 0.2 104.8 -43.9 146.0 0.9% 33.43 3.0 0.70 8.15 37.00 181.5 FY12E 32.10 0.6 0.0 0.11 2.09 7.4 482.5 482.44 3.0% 40.0 576.3 697.8 161.2% 76.9% 41.1 -122.3 -1.92 -0.6 -90.4 FY11E 201.0 87.96 24.6 37.2% 137.4 43.3 -3.7 -1.6 -9.8 -5.91 22.3 0.1 201.09 0.9 442.0 Ratios: Earnings (x) Price Book Value (Rs.6 841.3% 0.5 4.) ROE (%) ROCE (%) Debt Equity Ratio Price / Book Value (x) EV / Sales EV / EBIDTA .5 40.2 22.6 2.5 -1.6 563.19 48.4% -0.81 37.1 Investment Capex Other Investment Total Investment Financing Dividend Paid Share Capital Premium / Reserve Borrowing Other Income Other Interest Tax Paid Total Financing Net Chg.3 7.7 563.4 161.4 610.9 44.0 0.0 292.00 34.2 173.0 -47.0 111.5 0.5 86.15 6.6 3075.5 1525.67 FY12E 8.2 1.0 -33.00 207.28 29.0 719.3 -6.2 3.4 21.8 22.2 7.2 18. Exceptional Items PBT Tax Adj PAT Adj Diluted EPS (Rs.8 271.29 36.66 14.3 -44.3 454.2 -47.9 169.0 439.Net % change EBITDA % change in EBIDTA Interest EBDT Depreciation Other Income Exceptional Items PBT Tax PAT Adj.0 0.94 0.6 18.0 32.9 0.0 20.6 46.0 -45.4 51.4 6.1 14.2 -141.3 1.0 0.61 0.8% N/A 8.7 145.7 146.0 257.05 0.1 2.7 59.1 24.4 118.3 -57.6 100% Jun.9 1621.0 -38.5 1.9% 18.5 1.9 -19.2 -0.31 34.49 10.March Revenues .10 667.31 179.0 0.0 0.0 -19. In Cr) Y/E .4 452.4 558.0 475.4 7.1% 3.7 22.0 -3.6 13.82 FY10A 6.55 3.2 482.98 -0.7 FY10A 32.19 51.5 16.09 520.3 50% Mar.0 206.7 FY12E 300.4 0.3 7.4 -3.2 452.6% 4.4 172.2 9.4 .

40 FY12E 4.92 FY10A 8.47 0.3% 0.25 3.7% 11.21 -0. Nirmal Bang Research expressly disclaims any and all liabilities that may arise from information.32 16.06 Note Disclaimer This Document has been prepared by Nirmal Bang Research (Nirmal Bang Securities PVT LTD). represents Nirmal Bang Research opinion and is meant for general information only.) ROE (%) ROCE (%) Debt Equity Ratio FY09A 86.10 24. analysis and estimates contained herein are based on Nirmal Bang Research assessment and have been obtained from sources believed to be reliable. its directors. its affiliates and their employees may from time to time hold positions in securities referred to herein.46 Apar Industries Ltd.6% 0.29 4.The information.03 2.38 6.2% 16. at best.4% -0.44 0. . This document is meant for the use of the intended recipient only.20 FY11E 5. Valuation Matrix Price Earnings (x) Price / Book Value (x) EV / Sales EV / EBIDTA FY09A NA 2.3% 16.51 FY12E 144.9% 0.48 0.71 1. officers or employees shall not in anyway be responsible for the contents stated herein. This document is not to be considered as an offer to sell or a solicitation to buy any securities.Initiating Coverage Ratio Book Value (Rs. Nirmal Bang Research. This document.81 1. Nirmal Bang Research.63 18. Nirmal Bang Research or its affiliates may from time to time solicit from or perform investment banking or other services for any company mentioned in this document.76 22.0% 0.57 FY11E 112.90 0.58 FY10A 87. errors or omissions in this connection.

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