New Research Reports

Apollo Tricoat's minority shareholders will receive for each equity share held: o One equity share in APL Apollo o Implied premium of 16% on Friday's i.e., 26th Feb,2021 closing price for Apollo Tricoat's shareholders...

Improvement in demand from automobile sector augurs well Healthy demand from the automobile sector and from OEMs/component manufacturers aided VSSL to report a strong operational performance in Q3FY21. On the back of good demand from user industry, for Q3FY21 VSSL reported a robust EBITDA/tonne of | 8583/tonne (| 4794/tonne in Q2FY21 and | 1879/tonne in Q3FY20). This quarter's performance was beyond company's normal guided range. VSSL's EBITDA/tonne guidance is in | 5000-7000/tonne range. For 9MFY21, EBITDA/tonne came in at...

Maintain BUY and revise TP to Rs. 1,054/share (Rs. 713 earlier) as we now value the stock on PE basis from EV/EBITDA earlier owing to significant reduction in debt and overall improvement in balance sheet.

APL Apollo Tubes (APL) reported better than expected profitability for Q3FY21 as its EBITDA was 27% higher than our estimate. The EBIDTA/tonne at Rs4,780 (+43% YoY) was a strong beat and was led by better product mix and scarcity of raw material (steel)/ tubes. APL's EBIDTA jumped 45% YoY to Rs2.3 bn. Higher operating cash flow for 9MFY21 at Rs 8.5bn (Rs5.1 bn in FY20) and fall in net working capital days to 8 days...

Earlier, during Q1FY21, VSSL reported a subdued performance. While the Q1FY21 performance was weak on the back of Covid-19 related concerns, in Q2FY21, the company witnessed a healthy turnaround in its operations on the back of a smart recovery in demand from the auto sector. On the back of strong demand from the domestic auto sector, in Q2FY21 VSSL registered its highest ever quarterly sales volume of 43986 tonnes (up 32% YoY). Going forward, for Q3FY21 also, the management expects the healthy trend in auto...

Closure of loss making stores to improve profitability For H1, retail business revenues de-grew ~30% YoY to | 492 crore with Q2 witnessing ~18% YoY decline at | 283 crore. The company, which reported EBIT losses in Q1, returned to the black with EBIT margins of 6% in Q2 (down 200 bps YoY. We highlight that Shankara has rationalised its stores with strong focus on higher revenue share and healthier margin. The process has reduced the store count (to 115 at the end of Q2FY21 vis--vis 129 at the end of Q2FY20) but increased the average ticket size (to | 30,640 in Q2FY21 vis-vis | 28,156 reported in Q2FY20). Post an expected decline of ~18% in...

5. Interest Cost declined by 41% to `159mn 2. Given the strong commentary in Q1 about volume growth, the street was optimistic going into Q2 earnings. This optimism led rally was accentuated with strong volume growth of ~32% in Q2FY21 released by the company in pre-quarterly update. 3. The second quarter delivered robust performance with healthy traction in revenue (34% YoY) led by superior volume growth, sharp improvement in EBITDA per ton and...

We recommend a BUY on APL APOLLO TUBES LTD with a Target Price of Rs.3,428an upside of 9% from CMP of Rs. 3,145 and Stop Loss Rs. 3,000.

We revise our Revenue/EBITDA/PAT estimates for FY21/22 on the back of a healthy growth commentary and likely improvement in margins supported by market share gains. Maintain BUY with a revised TP of Rs. 3,565/share as we raise our target EV/EBITDA multiple to 12x (10x earlier)

APL Apollo Tubes (APL) reported better than expected profitability for Q2FY21 as its EBITDA was 7% higher than our estimate. It reported strong sales volume at 481kt (+31% YoY). EBIDTA /tonne at Rs 3,514 (+78% YoY) was 13% better than our forecast. Its EBIDTA jumped 135% YoY to Rs1.7 bn. Interest cost declined by 41% to Rs159 mn as...