Why Has Nomura Raised Apar Industries Target Price to ₹14,240?
About Apar Industries
Apar Industries is one of India's leading manufacturers of conductors, specialty oils and power cables. The company has emerged as a key beneficiary of rising power transmission investments, renewable-energy expansion and increasing electrification requirements across domestic and international markets.
The company continues to strengthen its position in high-growth segments such as premium cables, conductors and transmission infrastructure, making it a direct beneficiary of long-term power sector capital expenditure.
Following the latest quarterly results, global brokerage Nomura reiterated its positive stance on the company and significantly increased its target price, highlighting the strength of the business outlook.
Nomura's Key Takeaways
🔹 Maintained 'Buy' rating on Apar Industries.
🔹 Increased target price to ₹14,240 from ₹10,600.
🔹 Reported strong Q4 performance.
🔹 Conductor demand remains structurally healthy.
🔹 Raised FY27 and FY28 EBITDA estimates.
🔹 Expects strong growth momentum in the cables segment.
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Nomura Outlook Snapshot
| Parameter | Nomura View |
|---|---|
| Rating | Buy |
| Target Price | ₹14,240 |
| Previous Target | ₹10,600 |
| FY27 EBITDA Estimate | Raised by 7% |
| FY28 EBITDA Estimate | Raised by 9% |
| FY26-29 EBITDA CAGR | 19% |
The sharp increase in target price reflects confidence that Apar Industries can continue delivering above-industry growth supported by strong order inflows and expanding market opportunities.
Strengths🔹 Strong conductor demand visibility. 🔹 Leadership in power infrastructure products. 🔹 Robust cables business growth. 🔹 Beneficiary of power transmission capex. 🔹 Strong earnings momentum. |
Weaknesses🔹 Commodity price exposure. 🔹 Dependence on infrastructure spending. 🔹 Working-capital intensity. 🔹 Cyclical demand elements. 🔹 Export market volatility. |
One of the most important growth drivers highlighted by Nomura is the continued expansion of the cables business, where demand remains strong across industrial, infrastructure and renewable-energy applications.
Opportunities🔹 Renewable energy transmission projects. 🔹 Grid modernization programs. 🔹 Growing premium cable demand. 🔹 Expansion in DC transmission infrastructure. 🔹 Export market opportunities. |
Threats🔹 Raw material volatility. 🔹 Global economic slowdown. 🔹 Project execution delays. 🔹 Competitive pricing pressure. 🔹 Currency fluctuations. |
Direct Current (DC) transmission infrastructure is another area attracting investor attention because it typically commands premium pricing while benefiting from rising transmission investments worldwide.
Valuation & Investment View
Nomura's revised target price suggests confidence that Apar Industries can sustain strong earnings growth over the medium term. The brokerage expects EBITDA to compound at approximately 19% between FY26 and FY29, supported by healthy conductor demand, premium cable growth and opportunities emerging from the power infrastructure cycle.
Investors seeking additional market insights may also follow our BankNifty Future Trade coverage for broader market opportunities.
Investor Takeaway
Derivative Pro & Nifty Expert Gulshan Khera, CFP® believes Apar Industries remains one of the key beneficiaries of India's ongoing power infrastructure expansion. Strong conductor demand, cable segment growth and premium transmission opportunities continue to support the long-term growth narrative. Investors should monitor order inflows, margin trends and execution performance over the coming quarters. Read free expert insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Apar Industries and Power Sector
Why did Nomura raise its target price on Apar Industries?
What is driving conductor demand growth?
How important is the cables business for Apar Industries?
What are DC transmission opportunities?
Can Apar Industries sustain a 19% EBITDA CAGR?
How does India's power capex cycle benefit Apar Industries?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services
