APAR - Initial Coverage

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India Advantage Securities Limited

Member of NSE. BSE.MCX, DP. CDSL

1 For Private Circular Only |September 8, 2010| IASL Research

w w w . i n d i a a d v a n t a g e . c o . i n

Company Overview

Apar Industries Ltd. headquartered in Mumbai, India with production facilities

across Rabale (Maharashtra), Silvassa (Union Territory of Dadra Nahar Havel

Nalagarth (Himachal Pradesh). Apar’s Conductor Division started in 1958 with the tec

know–how from Alcan (Canada) and Properzi (Italy) is the largest producers of POWE

Aluminium and Alloy Conductors, in Asia, with strategic partnership and

relationships with the top EPC Contractors in the World. The aluminium conductor d

manufactures all types of bare overhead aluminium conductors and GS earth wires.

Investment Rationale

• Largest manufacturer of transformer oil with ~50% market share. Dom

presence in the power transformer segment with long‐term relationships w

major transformer manufacturers.

• Huge capex expected in power sector, which will boost ancillary industries

• Government of India (GOI) has plans to increase its power generation ca

from the current 156 GW to 220 GW by 2012.

• The order book as of 1st April for FY11 is ` 10832.4 mn in confirmed orde

` 2865 mn in the pipeline. Approximately 75 percent of these orders (con

and pipeline) will be executed in FY11.

• PGCIL Plans Capital Expenditure of ` 5500mn During XI Plan

• The total fund requirement for the development in T&D sector is estima

` 4270 bn in 11th five year plan which will create huge opportunities of re

generations for companies like Apar.

• Apar Industries Ltd. will be a key beneficiary of the capital expenditure occ

in the Indian transmission sector. The company has presence in transm

conductors and transformer oils.

• In transmission conductors, Apar is the largest exporter and second largest

in domestic market with 23 percent market share. Recent capacity expans

Nalgarh to further strengthen company’s position.

Key Risk/Concerns

o Foreign Exchange

o Highly volatile raw material prices

o Delay in order inflow

Outlook & Valuations

We expect 18% revenue CAGR over FY10‐12E for Apar Industries ltd. It’s a dominant

in all its businesses namely Power Conductors and Specialty Oil. The Company has g

for a volume growth of 30percent in Conductors and 15percent for transformer & sp

oil based on the growth in the Power sector and in the EHV segment (in transmiss

particular wherein the company has a clear leadership position with approvals from

transformer OEM’s and Utilities like Power Grid Corporation Ltd. We recommend the

to ACCUMULATE with a target price of `243 per share.

Initiating Coverage

Key Data

ector Capital Goods

BSE Code 532259

BSE Group B

Bloomberg Code APR IN

Reuters Code APAR.BO

Market Cap (INR mn) 64025

52 WK High / Low 284/135

Total Volume (BSE) 13149

Total Volume (NSE) 19285

ace Value (INR) 10.00

Beta‐Sensex 0.69

Beta ‐ Nifty 0.73

Recommendation Accumulate

CMP `198 Target `243

Potential Upside 20‐25%

Share Holding Pattern (%)

Promoters 62.15

Foreign Institution 2.99

nstitutions 14.84

Non Promoter Corp. Hold. 12.29

Public & Others 7.74

Tushar Das

Analyst

+91 3301 8475

[email protected]

Source: IASL Research

09/ 2007 06/09/2008 06/09/2009 06/09/2010

Apar Ind BSE_SENSEX

Sensex and Stock Movement

APAR Industries Limited



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1. Conductors Segments:

• Apar’s conductor division was started in 1958 with technical know how from Alcan, Canada and Properzi, Italy. Today,

contributes half of India’s total export of aluminium power conductors and a significant portion of its domestic consumptio

• Types of Conductors: The division manufactures all types of bare overhead aluminium conductors such as All Alumin

Conductors (AAC), Aluminium Alloy Conductor (AAAC), Aluminium Conductors Steel Reinforced (ACSR), All Aluminium S

Reinforced Conductors (AASRC), Galvanized Steel Earth Wires and value added alloy based conductors.

• AAC are made up of one or more strands of aluminum wire depending on the required current carrying capacity. T

conductors are used for distribution of electricity specially at substations. AAC conductors have very high degree of corro

resistance.

• AAAC conductors are manufactured consisting of one or more of high strength aluminium ‐ magnesium – silicon alloy w

These conductors are widely used in overhead transmission lines for primary and secondary distribution of power. It prov

very high strength than AAC. Aluminium alloy conductors by Apar were first in India through its own R&D activitie

contributes more than 60‐65percent revenue to the conductor segment.

• AACSR conductors are of one or more aluminium strands as outer wire and wire stranded with zinc coated high steel

wire. These are also used for transmission and distribution of current. These conductors provide excellent mechanical

tensile strength, thus, are best suited for extra long spans, river crossing etc. It contributes more than 60‐65percent reve

to the conductor segment.

• Clients: PGCIL is the largest client of Apar for conductors. It also sells conductors to BOOT contractors such as Adani Po

Reliance Infrastructures, JP Power, Jindal Power etc.

• Approval from all Indian and global utilities: Apar enjoys approvals from all Indian and overseas utilities in strategic mar

like Iran, Iraq, the Middle East and Africa. The company enjoys preferred supplier status with them.

2. Speciality Oil: • The company ventured in to speciality oil business in 1969 with technical know‐how from US based Sun Oil Company.

division have four products viz transformer oil, white oils, rubber processing oils and Industrial oils. Brief description of

products are as follows:

Product % sub‐seg Application Purpose Prospects

Transformer

Oils

50% Power & Distribution Transformers

Used as coolant and

insulation medium

Industry is expected to grow wit

the CAGR of 15‐20% with the ris

demand for transformers

White Oils 12%

Pharmaceuticals products, cosmetics

and food related applications

Serves as base

material

Robust growth in health care

product, cosmetics and polymer

industries.

Rubber Process

Oil 13%

Rubber products such as automobile

tyres and tubes, bicycle tyres, tyre

retreading material, battery

containers etc

Helps in blending

rubber with other

chemicals

Growing demand from the tyres

and automobile industries

Ink Oil

25%

Used in manufacture of ink for

coloured news print

Serves as base

material

Evolution in print media with bla

ink getting replaced with coloure

ink in many printed materials

Industrial &

Automotive

Lubricants

Used in compressors, refrigerators

and automobile engines

Provides lubrication

between moving

machine parts

Increasing number of OEM

projects; rising demand from

automobile industry; increasing

industrialization.

Source: Company, IASL Research



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i







Key highlights of Q1 FY2011 Result

• Net Sales increased from Rs. 5032.50 Million to Rs 6172.91 Million; representing a growth of Rs 1140.41 Million up by 2

percent over corresponding period of previous year.

• EBIDTA increased from Rs.328.60 Million to Rs. 368.75 Million; representing a growth of Rs. 40.15 Million (12.2%) o

corresponding period of previous year.

• PBT increased from Rs. 266.17 Million to Rs. 339.77 Million; representing a growth of Rs. 73.60 Million (27.7%) o

corresponding period of previous year.

• PAT decreased from Rs. 244.79 Million to Rs. 240.15 Million; down marginally by 1.9 percent over corresponding period

previous year. This was due to increase in average tax incidence by 21.29 percent since tax exemption status for Silvassa pl

of Oil division got over in the last quarter (Q4FY10) and the division contributed more to company’s profit than Nalagarh pl

of Conductor, which continues to enjoy tax exemption, has earned lower profit in this quarter.

Segment Revenue

Conductor:

• Sales revenue in Q1 FY1 1 was up 3.6 percent over the corresponding period of previous year from Rs. 2841.19 Million to

2943.07 Million representing a growth of Rs 101.88 Million. The corresponding volume growth was 10.3 percent.

• Segment Level profit was down by 15.1 percent from Rs 169.81 Million to Rs 144.12 Million.

• The Q1FY11 had an improved level of operations with a good overall capacity utilization compared to the previous few quartThe business with domestic & export customers has picked up, and the execution of orders in this quarter was smooth. T

resulted in an improved quantum of production & sales.

• The orders on hand as of 31st July 2010 stood at Rs 12,258.9 Million.

Transformer and Specialty Oils:

• Sales revenue increased from Rs 2197.96 Million to Rs 3295.36 Million, representing a growth of Rs 1097.40 Million (49.9

over the corresponding period of previous year. The corresponding volume was up 12.3 percent as volume increased fr

59,232 KL to 66,511 KL.

• Segment Level profit increased from Rs 186.24 Million to Rs 244.58 Million; representing a growth of Rs 58.34 Million (31.3

over the corresponding period of previous year.

• Sales

volumes

across

all

the

5

sub

segments

of

the

oil

division

have

shown

growth

both

in

the

domestic

market

and

in

expoVolume growth has been the highest in Transformer oils.

• Further, in the case of transformer oils, the sales mix has further improved for high performance oils targeted at EHV custom

of 220 KV to 765 KV power transformers both in domestic and overseas markets. This has led to better profitability of

business.

• The company expects continued growth of at least 15 percent in the transformer oil segment for the next 3‐4 years based

the ongoing expansions in the power sector in India. More specifically, the growth in the EHV segment as the transmiss

networks are built is expected to be strong, where the company has a clear leadership position with approvals from ma

transformer OEM’s and Utilities like Power Grid Corporation Ltd.

INVESTMENT RATIONALE







Q1 FY2011 Result Q1FY2010 Q1FY2009 Var %

Net Sales 6,172.91 5,032.50 23%

Operating Income 76.08 12.79 495%

Total Income 6,248.99 5,045.29 24%(Increase)/Decrease in stock (49.89) (26.17) 91%

Consumption of Raw Materials 4,985.46 3,855.52 29%

Purchase of traded goods 56.86 118.83 ‐52%

Employee cost 61.70 56.57 9%

Other Expenditure 826.45 711.98 16%

Total Expenditure 5,880.58 4,716.73 25%

PBDIT (Ops) 368.41 328.56 12%

(% of Total Net Sales) 6% 6.5%

Interest & Fin. Charges (1.54) 30.80 ‐105%

PBDT (Ops) 369.95 297.76 24%

Depreciation 30.52 28.74 6%

PBT (Ops) 339.43 269.02 26%

Other Income 0.34 0.04 750%

PBT (Before Ext. Items) 339.77 269.06 26%

Exceptional items ‐ 2.89 ‐100%

PBT 339.77 266.17 28%

Tax Provisions 99.62 21.38 366%

Profit after Tax 240.15 244.79 ‐2%

1. Income Q1FY2010 Q1FY2009 Var. (%

Conductors 2,943.07 2,841.19 4%

Transformers & Speciality Oils 3,295.36 2,197.96 50%

Others/Unallocated 13.14 8.58 53%

TOTAL 6,251.57 5,047.73 24%

Less: Inter segment revenue 2.58 2.44 6%

Net Sales 6,248.99 5,045.29 24%

2. Profit / (Loss) before interest & tax Q1FY2010 Q1FY2009 Var. (%)

Conductors 144.12 169.81 ‐15%

Transformers & Speciality Oils 244.58 186.24 31%

Others 2.58 1.43 80%

TOTAL 391.28 357.48 9%

Less:

i) Interest (Net) (1.54) 30.80 ‐105%

ii) Other unallocable expenses (Net) 53.05 60.51 ‐12%

Total Profit Before Tax 339.77 266.17 28%










1 Largest Manufacturer of transformer oil with around 50% market share

Apar is the market leader in transformer oils with over 50 percent market share in India under the brand POWEROIL. Transformer o

used in power generation and transmission transformers. Apar is the dominant supplier in power transformer sector (132 kV to 80

meeting the special requirements of OEMs, Utilities and Power Transmission & Distribution Companies.. It exports transformer oils to

35 countries including Middle East, Malaysia, Brazil, Kenya, South Africa, Australia and New Zealand. Apar is the fifth largest transf

oil producer worldwide.

Other specialty oils

Apart from manufacturing transformer oils, Apar also manufactures liquid paraffin’s, white oils, rubber processing oils, ink oils, ind

oils & lubricants.

STRONG DEMAND FOR COMPANY’S PRODUCTS

The government plans to spend Rs1.73tn on power transmission and distribution in the Eleventh Five‐Year Plan (FY08‐12). This tran

into ~8x growth in demand for the company’s products. Management expects demand for conductors to increase from 0.25mt

present to 2.1mtpa by FY12. The company is poised to take advantage of this multifold growth, having undertaken ~25 percent expa

in installed capacity. Management has increased capacity to 337351MT from 269881MT. As for transformer oils, the demand is exp

to reach 900mn litres pa as compared to 110mn litres pa currently.

Focus on the value added products

Apar

is

focusing

on

the

development

of

high

value

a

product

which

is

a

high

margin

business.

The

Transformer

oil

segment

has

recsignificant orders for its high oxidation stability grade products meeting special application requirements of Extra High V

transformers, with ratings of 400 KV to 800 KV from several global transformer majors. This segment is expected to have a much h

demand in the years to come as the BRIC countries, including India build high voltage transmission networks. Apar, is so far the only

company to have this approval from global transformer OEM’s.

Apar is focusing on developing high temperature conductors which can carry a higher amount of current. The capacity to carry

current is being increased by 25 per cent, 50 per cent and up to 100 per cent. At the moment, in India, there is no significant dema

the conductors. With the government's focus on high‐voltage transmission grid, the demand for high voltage conductors is expec

witness a major push in the coming years.

34

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20

30

40

50

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FY2006 FY2007 FY2008 FY2009 FY2010

Transformer Oil Volume Realisations




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r







Global presence – accessing opportunities overseas

• Apar contributes half of India’s total export of aluminium power conductor

company exports across more than 30 countries.

• The Company enjoys approvals from all Indian and overseas utilities in str

markets like Iran, Iraq, the Middle East and Africa.

• It has approvals from major global EPC contractors who build projects

Middle East, South East Asia and Africa. The company enjoys preferred su

status with them.

• Apar also export its speciality oil through joint ventures in Australia, South

and Turkey.

Maintaining a stable order book

As on 1st April, 2010, Apar Industries had an order book position of Rs. 108.3

confirmed orders and Rs 28.6mn in the sales pipeline. Approximately 75 per cent of

orders (confirmed and prospect pipeline) will be executed in FY11. Power Grid Corpo

is the largest domestic customer with a Rs 50.0mn order book (confirmed and ord

pipelines), while Adani Power is the other significant client, with an order book of a

Rs 300 crores. 2HFY10 had lower order execution as there were delays/ re‐schedule

of several orders that had been booked. However, the postponement of the execut

these orders will result in a substantially higher volume in FY11.

‐

20.00

40.00

60.00

80.00

100.00

120.00

140.00

1QFY09 2QFY09 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10

Confirmed Orders Orders in Pipeline

Note: 3QFY2010 pipeline order information is not available








TOP LINE GROWTH

Revenue (Top line) is growing at CAGR of 14 percent over the period of 2006‐10. F

FY10, Top line decline (‐15.23%) to ` 22355.44mn in the year ended March 2010 as a

`26370.60mn during the previous year ended March 2009. mainly due to reduction

material prices of base oils and crude oil as well as reduction in the prices of alum

resulting in the consequent reduction in sale prices. Part of the decline was also due

lower sales volume of conductors in FY10.

Margins improved in FY10 on back of economic recovery

Apar EBIDTA margins have been in the vicinity of 7 per cent during FY0

except FY09 where the margins dropped due to the global crisis. Similarlymargins are in the range of 6 – 6.5 per cent. In FY10, Conductors EBIT m

were at 6.1 per cent and Transformer Oil & Speciality Oils EBIT margins we

around 10 per cent. In the case of transformer oils, the sales mix improved

high performance oils targeted at EHV customers of 220 KV to 765 KV p

transformers both in domestic and overseas markets; this has led to b

margins.

FINANCIAL OVERVIEW

‐

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

FY2006 FY2007 FY2008 FY2009 FY2010

Net Sal

8.71%7.64% 7.44%

2.46%

6.97%

7.93%

6.98% 6.65%

1.91%

6.14%

‐

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

1,600.00

1,800.00

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

FY2006 FY2007 FY2008 FY2009 FY2010

EBITDA EBIT EBITDA Margin (%) EBIT (%)









0.57

0.61

0.35

0.58 0.57

0.52

0.46

‐

0.10

0.20

0.30

0.40

0.50

0.60

0.70

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011EFY201

12.95

14.90

28.28

(1.65)

7.53

35.24

37.05

(5.00)

‐

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E

0%

10%

20%

30%

40%

50%

60%

70%

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011E FY2012E

RoCE (%) RoE(%)

FINANCIAL CHARTS

EPS Trend

Debt/Equity Trend

‐

20

40

60

80

100

FY2006 FY2007 FY2008 FY2009 FY2010 FY2011E FY20

Inventory (Days) Debtors (Days)











VALUATIONS

We expect 18% revenue CAGR over FY10‐12E for Apar Industries ltd. Apar Industri

the dominant player in all its businesses namely Power Conductors and Specialty Oil.

Company has guided for a volume growth of 30 percent in Conductors and 15 per

for transformer & specialty oil based on the growth in the Power sector and in the

segment (in transmission) in particular wherein the company has a clear leader

position with approvals from major transformer OEM’s and Utilities like Power

Corporation Ltd. We recommend the stock to ACCUMULATE with a target price of `per share.

Competitor Analysis

Apar is the second largest player in the conductor business after Sterlite Technologi

is the largest Transformer Oil manufacturer in the country. During FY10, Apar reconon‐cash charge of Rs 55.5 crores for impairment in equity investment of Uniflex C

Excluding the expense, Apar has reported an EPS of Rs 26.64 translating into a P/E o

which is at discount to its competitors.

Particulars Year End CMP M Cap (Rs in cr) Total Income EBIT Margin EPS

Apar Industries Mar‐10 198 640.94 22515 6% 7.53

Sterlite Technologies Mar‐10 97 3461.77 25434 12.5% 6.91

Savita Oil Tech. Mar‐09 525 767.59 12987 11.2% 11.82

Key Concerns

• Highly volatile raw material prices: Aluminium and base oils are the two

raw materials of the company. Prices of base oils are directly related to cru

prices, any significant volatility in the price of crude oil and aluminium can

the profitability of the company.

• Foreign exchange fluctuation: Around 30 per cent of the business comes

the export markets; any significant change in currency valuation could affe

profitability.

• Delay in the orders / postponement of the order booked from key clien

Power Grid will adversely affect the company’s sales.

Source: Company, Capitaline, IASL Research







Profit & Loss Statement (Rs in mn) FY2008 FY2009 FY2010 FY2011E FY2012E

Net Sales 17,665.15 26,370.60 22,355.44 27,528.82 30,765.33

Total

Income

17,739.25 26,432.86 22,515.44 27,688.82 30,925.33‐ Raw Materials & Components Consumed 14,132.53 22,177.31 16,776.97 21,527.53 24,150.78

‐ (Increase)/Decrease in Stocks (186.20) (104.52) (238.65) ‐ ‐

‐ Power, Fuel & Electricity 291.19 316.68 255.26 386.14 415.57

‐ Packing Material 485.72 741.04 756.80 825.86 876.28

‐ Employee Cost 184.52 255.80 338.44 320.77 353.68

‐ Administration & Selling Exp 1,582.50 2,481.55 3,093.87 2,587.71 2,953.47

Total Expenditure 16,490.25 25,867.85 20,982.69 25,648.01 28,749.78

PBDIT (Ops) 1,174.90 502.75 1,372.75 1,880.80 2,015.54

Interest & Fin. Charges 370.51 412.50 331.99 437.40 475.73

Depreciation 139.88 147.15 185.13 229.41 255.31

PBT (Ops) 664.50 (56.90) 855.63 1,213.99 1,284.49

Other Income 74.10 62.26 160.00 160.00 160.00

PBT (Before Ext. Items) 738.60 5.37 1,015.63 1,373.99 1,444.49

Exceptional items 347.87 (17.40) (11.56) ‐ ‐

PBT 1,086.48 (12.03) 1,004.07 1,373.99 1,444.49

Tax Provisions 180.86 23.41 223.86 288.54 303.34

Profit after Tax 905.61 (35.44) 780.21 1,085.46 1,141.15

Share of Associate's loss 12.99 (57.90) ‐ ‐

Minority Interest 4.00 40.12 67.21 54.00 57.00

Adj PAT before Extraordinary item for the year 914.60 (53.22) 847.42 1,139.46 1,198.15

Extra ordinary Item ‐ ‐ 603.80 ‐ ‐

Adj. Profit after Extraordinary item 914.60 (53.22) 243.62 1,139.46 1,198.15

CONSOLIDATED FINANCIALS


Balance Sheet Statement (Rs in mn) FY2008 FY2009 FY2010 FY2011E FY2012E

Share Capital 323.36 323.36 323.36 323.36 323.36

Reserves & Surplus 2,521.50 2,476.26 2,510.34 3,488.12 4,524.59

Shareholders' Funds: 2,844.86 2,799.62 2,833.70 3,811.48 4,847.95

Loan Funds 1,008.98 1,613.83 1,617.33 1,988.19 2,212.72

Minority Interest 6.17 79.05 3.21 3.21 3.21

Deferred Tax Liability 53.79 63.29 71.90 66.52 67.21

SOURCES OF FUNDS 3,913.80 4,555.80 4,526.14 5,869.40 7,131.09

Net Block 1,073.45 1,668.17 1,785.95 2,289.42 2,465.89

Capital WIP 32.78 123.93 23.96 23.96 23.96

Fixed asset held for sale/disposal 0.73 0.73 0.73 0.73 0.73

Investments 374.49 0.23 0.23 0.23 0.23

Current Assets 13,026.89 16,567.18 15,253.27 17,223.90 18,685.1

Current Liabilities 10,623.51 14,419.09 12,538.00 13,668.84 14,044.9

Net Current Assets 2,403.38 2,148.09 2,715.27 3,555.06 4,640.28

Misc Exp (to the extent w/o or adj) 28.96 11.56 ‐ ‐ ‐

Goodwill on consolidation ‐ 603.08 ‐ ‐ ‐

APPLICATION OF FUNDS 3,913.80 4,555.80 4,526.14 5,869.40 7,131.09







Cash flow statement (Rs in mn) FY2008 FY2009 FY2010 FY2011E FY2012E

PBT 1,069.48 5.37 1,015.64 1,373.99 1,444.49

Cash generated from operations 4,620.31 2,489.75 (477.88) 2,250.89 799.26

Net

cash

from

operating

activities

4,378.64 2,250.66 (658.76)

1,962.35 1,025.46Cash used in investing activities 598.86 (123.17) 55.70 (472.83) (171.74)

Net Cash used in financing activity (919.45) (1,053.78) (623.86) (252.47) (437.14)

Net increase in cash & cash equivalent 4,058.04 1,073.72 (1,226.92) 1,237.05 416.59

Cash & Cash equivalents (Op Bal) 865.83 5,039.38 6,113.09 4,886.17 6,123.22

Closing Cash balance 4,923.88 6,113.09 4,886.17 6,123.22 6,539.81

Ratio Analysis FY2008 FY2009 FY2010 FY2011E FY2012E

Liquidity Ratios

Current Ratio 1.23 1.15 1.22 1.26 1.33

Acid Test Ratio 0.96 0.90 0.87 0.96 0.98

Cash Ratio 0.46 0.42 0.39 0.45 0.47

Leverage Ratios

Debt : Asset 0.26 0.35 0.36 0.34 0.31

Interest Coverage Ratio 2.99 1.01 4.06 4.14 4.04

Dupont Analysis‐ROE Decomposition

PAT/PBT (Tax Efficiency) 0.84 4.42 0.84 0.83 0.83

PBT/EBIT (Interest Burden) 0.92 (0.02) 0.73 0.73 0.72

EBIT/Sales (OPM) 0.07 0.02 0.06 0.07 0.07

Sales/Total Assets (Asset Turnover) 4.51 5.79 4.94 4.69 4.31

TA/NW (Financial Leverage) 1.38 1.63 1.60 1.54 1.47

ROE 32% ‐2% 30% 30% 25%

Valuation Parameter

EPS 28.28 (1.65) 7.53 35.24 37.05

PER 7.00 (120.30) 26.28 5.62 5.34

P/CEPS 6.07 68.16 14.93 4.68 4.41

P/B (X) 2.25 2.29 2.26 1.68 1.32

EV/EBIDTA 2.12 3.79 2.29 1.21 1.03

EV/Sales 0.14 0.07 0.13 0.08 0.06

M‐Cap/EBIDTA 5.45 12.73 4.66 3.40 3.18

M‐Cap/sales 0.36 0.22 0.26 0.21 0.19


Source: Company, IASL Research Estimate






IASL Research: E‐mail: [email protected]

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Analyst holding in stock: No.

Key to IASL Investment Rankings

Buy: Upside by>15%, Accumulate: Upside by +5% to 15%, Hold: Upside/Downside by ‐5% to +5%

Reduce: Downside by 5% to 15%, Sell: Downside by>15%

INDIA ADVANTAGE SECURITIES Ltd. (www.indiaadvantage.co.in)

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APAR - Initial Coverage

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