APL Apollo Tubes
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
APL Apollo Tubes is navigating a complex landscape marked by both opportunities and challenges. Management's commitment to expanding production capacity to 8 million tonnes by FY28, alongside a strategic pivot towards high-margin value-added products, positions the company favorably for long-term growth. This focus is critical as it aims to insulate the business from commodity price volatility and enhance margins. Despite recent volume headwinds due to geopolitical disruptions and domestic energy constraints, management remains optimistic, projecting 15-20% volume growth and 20-25% EBITDA growth for FY27. The company's strong balance sheet and operational efficiencies further support Vista's forecast of stable margins and fair valuation. However, potential fluctuations in raw material prices and competition from alternative materials pose risks. The broader industry context, characterized by expanding infrastructure investments and improving pricing power, complements APL Apollo's growth trajectory. Over the next 12-24 months, key opportunities include capturing market share in the solar segment and leveraging government infrastructure spending, while watchpoints include managing operational risks and maintaining competitive pricing strategies
Why We Like This Stock
- Management's aggressive capacity expansion plan aims to increase production to 8 million tonnes by FY28, supporting long-term growth
- A strategic shift towards high-margin value-added products is expected to enhance profitability and mitigate commodity price risks
- The company's strong balance sheet and operational efficiencies provide a solid foundation for navigating market challenges
Things To Watch Out For
- Potential fluctuations in raw material prices could impact margins and profitability
- Geopolitical disruptions and domestic energy constraints have led to recent volume headwinds
- Competition from alternative materials may challenge market share and pricing power
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 18,119 | 20,690 | 23,079 | 22,386 | 24,633 |
| Profit Before Tax (Cr.) | 973 | 939 | 1,557 | 1,495 | 1,699 |
| PBT Margin | 5.4% | 4.5% | 6.7% | 6.7% | 6.9% |
| Net Profit (Cr.) | 734 | 753 | 1,226 | 1,173 | 1,333 |
| Earnings Per Share | 26.4 | 27.1 | 44.1 | 42.2 | 48.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Geojit Financials | ▲ Buy | 2,325 | 13-Aug-2026 |
| Motilal Oswal | ▲ Buy | 2,240 | 05-Aug-2026 |
| Axis Securities | ▲ Buy | 2,250 | 04-Aug-2026 |
| ICICI Securities | ▲ Buy | 2,080 | 04-Aug-2026 |
| IDBI Capital | ▲ Buy | 2,270 | 04-Aug-2026 |
| UBS | ▲ Buy | 2,450 | 04-Aug-2026 |
| BofA | ▲ Buy | 2,170 | 06-Jul-2026 |
| HDFC Securities | ► Add | 2,070 | 23-Jun-2026 |
| Kotak Securities | ▲ Buy | 2,284 | 06-May-2026 |
| Nuvama | ▲ Buy | 2,617 | 02-Apr-2026 |
Company Overview
Show Company Profile
APL Apollo Tubes Limited manufactures and sells structural steel tubes and related value added products in India and internationally. The company offers circular hollow sections, square hollow sections, rectangular hollow sections, and GP Pipes for residential housing, commercial buildings, and infrastructure; apollo structural tubes, apollo Z+, apollo galv, apollo build products for industrial structures and modern construction; apollo chaukhat, apollo plank, apollo fencing solutions, and handrails for residential housing and green construction; and heavy structural tubes, large diameter pipes, and MS pipes for factories, warehouses, data centres, and food parks applications. It also provides coated tubes, pre-galvanised tubes, and specialty steel tubes for EVs, aerospace, oil and gas, and heavy engineering; and corrosion resistant pipes, tubes, and sheets for agricultural and industrial applications. It serves its customers through a multi-tier distribution model comprising dealers, distributors, direct marketing associates, and channel partners. The company was formerly known as Bihar Tubes Limited and changed its name to APL Apollo Tubes Limited in 2010. APL Apollo Tubes Limited was incorporated in 1986 and is headquartered in Noida, India.