APL Apollo Tubes Ltd. share price target

We recently met the management of APL Apollo Tubes (APL) to understand its business model and long term prospects. APL is one of the leading ERW steel tubes manufacturers in India. The product range of the company comprises four major types of pipes/tubes, viz. hollow section pipes, round pipes (black), pre-galvanised tubes (GP) and galvanised tubes (GI). In terms of product-wise revenue break-up, for 9MFY17, hollow section pipes contributed 46.1% to the topline while pregalvanised (GP), round pipes (black), galvanised tubes (GI) and others (trading & scrap) contributed 22.6%, 14.7%,14.1% and 2.5% of the...

APL Apollo Tubes Ltd. (APL) is one of the leading manufacturers of ERW pipes in India with a manufacturing capacity of 1.3mn tonnes. Its nearest competitor is nearly half the size of it. Out of the 1.3mn tonnes, galvanized (GI) and pregalvanized (GP) pipe capacity is 0.12mn tonnes and 0.2mn tonnes, respectively. ERW pipes and structures find application across various industries such as a...

APL Apollo is the fastest growing steel tube manufacturer in India, and has attained pole position in this category. The company is headquartered in Delhi NCR, and has six...

Top-line increased due to higher realization amid lower sales volume: On the back of around 44.9% Y-o-Y rise in the realization of core branded products, APL reported a 11.5% Y-o-Y increase in the top-line to Rs. 13,158.7mn. Demonetization (DeMo) led to lower sales volume of core products, which declined by 10.8% Y-o-Y to 0.23mn tonnes in Q4 FY17. Black and GI pipes sales was severely impacted and declined by 43.5% and 12.9% Y-o-Y, respectively. On an annual basis, top-line increased by 7.9% (lowest in last five years) to Rs. 45,450mn. Sales volume of core products and realization increased by 4.2%...