APL Apollo Tubes
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
APL Apollo Tubes is navigating a complex landscape marked by both near-term challenges and long-term growth opportunities. Management's strategic pivot towards high-margin, value-added products is crucial for insulating the company from commodity price volatility, which is expected to enhance margins and support revenue growth. The ambitious capacity expansion plan to 8 million tonnes by FY28 is a key driver of future performance, with management projecting 15-20% volume growth for FY27. Despite facing operational disruptions and geopolitical tensions, the company remains confident in its ability to recover in the latter half of FY27, supported by a robust distribution network and entry into specialized segments like solar structures. Vista's financial outlook reflects a moderate revenue growth trajectory, stable margins, and a fair valuation, with an expected upside of approximately 4.34%. Over the next 12-24 months, APL Apollo Tubes must navigate competitive pressures and operational risks while capitalizing on infrastructure-led demand and its strategic focus on value-added products
Why We Like This Stock
- Strategic shift towards high-margin, value-added products is expected to enhance profitability
- Ambitious capacity expansion to 8 million tonnes by FY28 supports long-term revenue growth
- Strong distribution network and entry into specialized segments like solar structures provide growth opportunities
Things To Watch Out For
- Near-term operational disruptions and geopolitical tensions may impact volume growth
- Competitive pressures from unorganized players could challenge market share
- Rising commodity prices and energy constraints pose risks to margin stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 18,119 | 20,690 | 23,079 | 22,496 | 26,450 |
| Profit Before Tax (Cr.) | 973 | 939 | 1,557 | 1,620 | 1,892 |
| PBT Margin | 5.4% | 4.5% | 674.6% | 7.2% | 7.2% |
| Net Profit (Cr.) | 734 | 753 | 1,226 | 1,271 | 1,484 |
| Earnings Per Share | 26.4 | 27.1 | 44.1 | 45.8 | 53.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 2,250 | 04-Aug-2026 |
| Geojit Financials | ▲ Buy | 2,325 | 13-Aug-2026 |
| HDFC Securities | ► Add | 2,070 | 23-Jun-2026 |
| ICICI Securities | ► Hold | 2,060 | 05-May-2026 |
| IDBI Capital | ▲ Buy | 2,270 | 04-Aug-2026 |
| Kotak Securities | ▲ Buy | 2,284 | 06-May-2026 |
| Motilal Oswal | ▲ Buy | 2,240 | 05-Aug-2026 |
| Nuvama | ▲ Buy | 2,617 | 02-Apr-2026 |
| UBS | ▲ Buy | 2,450 | 04-Aug-2026 |
Company Overview
Show Company Profile
APL Apollo Tubes Limited manufactures and sells structural steel tubes in India. The company offers structural tubes for construction, automotive, machinery, furniture, etc. applications; galvanized iron products for industrial and agricultural applications; tricoat pipes, designer pipes, and door frames; black round tubes used in plumbing systems of buildings; pre galvanized sections of square, rectangular, and circular tubes used for roofing structure; and ready-made and color coated chaukhat, steel building, and fencing solutions. It also exports its products. 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.