APL Apollo Tubes Ltd. share price target

We maintain our BUY rating on the stock.

Consolidated revenues beat estimates at Rs. 5,433 crore (up 30% y-o-y) led by 37% y-o-y growth in sales volumes. Also, its quarterly EBITDA/tonne stood at Rs. 4,174 (up 129% QoQ) owing to better price realisation.

Domestic steel prices have shown marginal improvement, with prices stabilizing after a recent decline. This positive development, along with India’s transition to a net steel exporter, bodes well for the steel sector

We maintain our BUY rating on the stock.

APL Apollo Tubes (APAT) reported the fourth consecutive quarter of weak operating performance (EBITDA/MT down 62% YoY in 2Q) on account of inventory loss of ~INR1.5b.

We maintain a Buy on the stock with an unchanged PT of Rs. 1850, considering its strong outlook led by capacity additions and structural demand drivers.

We maintain our BUY rating on the stock.

APL Apollo Tubes (APL) reported largely in-line consolidated revenues at Rs. 4974 crore (up 9.4% y-o-y) led by 9% y-o-y growth in sales volumes. However, consolidated EBITDA/tonne at Rs. 4183 (down 9.9% y-o-y.

APL Apollo Tubes (APAT) reported healthy sales volume of 721kmt (up 9% YoY/6% QoQ) in 1QFY25, led by the ramp-up of its Raipur and Dubai plants.

APL Apollo Tube’s (APL) Q4FY24 EBITDA has missed our and consensus estimates by 11.5% and 10.3%, respectively.

We maintain our BUY rating.

APL Apollo Tubes (APAT) reported muted sales volume of 679KMT (up 4%
YoY and 12% QoQ) in 4QFY24, led by channel de-stocking due to steel
price corrections. Further, EBITDA/MT declined ~17% YoY to ~INR4,132,
due to higher rebates and discounts offered by APAT to counter the
inventory destocking.

Recommendation: Incremental production from the Raipur plant will drive higher EBITDA/t. We maintain our BUY rating.

We recommend a BUY with a near-term TP of Rs 1,750/sh, implying an upside of 10% from the CMP.

APL Apollo Tubes (APL) performance undershot our/street’s estimates. Key points: 1) Sales volume rose to a record 675kte; however, the proportion of Value Added Products (VAP) sales declined. 2) EBITDA rose 40.4% YoY mainly due to the ramp-up of Raipur plant.