APL Apollo Tubes' volume expansion plan, aggressive market share augmentation and product mix improvement initiatives are key positives.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
We are initiating coverage on APL Apollo Tubes Ltd. with 'Accumulate' rating and target price of Rs 1,830 valuing at 32 times FY27E earnings. Adjusted profit after tax has become India's largest producer of structural steel tubes, boasting an installed capacity of 4.3 mtpa as of end Q3 FY25. The company aims to increase its total installed capacity to 5 mtpa by FY26E.
Management targets sales volume growth of ~22% in FY25 to 3.2 metric tonne, followed by 4 MT/5MT for FY26/27E respectively. We believe that the ramp-up of new facilities will enhance the topline, while improvements in the product portfolio through a greater proportion of value-added products will support margins. Q3 FY25 witnessed best-ever quarterly Sales volume, Ebitda and PAT.
The company's volume expansion plan, aggressive market share augmentation and product mix improvement initiatives are key positives. We expect revenue/Ebitda/PAT CAGR of 24/38/50% over FY25-27E. The stock is currently trading at P/E of 39/28 on FY26/FY7E EPS.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
