APL Apollo Tubes Ltd is one of the leading manufacturers of branded steel tubes in India with a total capacity of 1.8 million tons per annum (MTPA). Apart from this, it is the largest producer of Electric Resistance Welded (ERW) steel pipes and sections in India.
Valuation: Given strong demand and helathy volume growth visibility given capacity expansion, we forecast revenue/net profit cagr of 10%/12% over FY1820E. Currently the stock is trading at an attractive valuation and we expect the company to enjoy higher valuation owing to strong earnings growth trajectory, healthy free cashflow generation and improvement in return ratios going ahead. We recommend ACCUMULATE rating on the stock with a target price of Rs. 1,835, based on 16x FY20E EPS.
Research-Report – APL Apollo Tubes Ltd
Investments in equity shares, debentures, etc., are not obligations of, or guaranteed by Wealth India Financial Services Pvt. Ltd., and are subject to investment risks. Click here to read our full disclaimer.
- Merger of Navi Overnight Fund into Navi Liquid Fund and Navi Conservative Hybrid Fund into Navi Aggressive Hybrid Fund
- Intimation of suspension of subscription in Bandhan US Equity Fund of Fund
Winning Funds, Losing Streaks: Decoding the Mystery of Short-Term Underperformance
Wealth Conversations – November 2024- Notice of Change in Fundamental Attributes of DSP Equity & Bond Fund and DSP Quant Fund
