Hi,
Management has guided that revenue degrew by little amount due to lower commodity prices and low volume growth. Also, facing some headwinds in the Spec. oil business and they got marginally hit post demonetization due to auto segment.
I am bullish on the management execution but usually keep neck out of this kind of business due to poor margins and competitive environment. Cable conductor business is too competitive and low margin.
However, they have a good product mix and excellent operational execution. Also, mgmt has focus on diversification and export order.
With continued focus on renewable, pick up in oil, T&D business I see Sales CAGR to improve and the management (Desai) has niot diluted their focus.
They have announced buyback at 650-660 and price is at 630…What is the good entry point to get into APAR? All good news looks to be priced in here.
If Seniors can help me guide here, that would be great.
PS: My father retired from APAR from a management position and he believes APAR should do well due to excellent management, govt focus on T&D and ambitious targets.
Recent Awards: Apar wins this honor for the Second time.The Honor is in the category for the “Solar Power Cable Company of the Year” in Rooftop Solar 2017.
Cheers,
Amit