APL Apollo Tubes Ltd. share price target

APL Apollo’s (APL) Q4FY23 EBITDA was 2% and 13% ahead of street and our estimates, respectively. Key takeaways: 1) sales volume touched a record 650kte (up 18% YoY) on higher shipments across segments; 2) profitability improved in all segments driven by favourable costs and higher volumes.

Recommendation: With the Raipur plant moving to positive operating leverage and EBITDA spreads likely to improve further in future, we maintain our BUY rating on the stock.

We maintain our BUY rating on the stock and continue to value it at 31x PE of Mar'25E EPS.

APL Apollo’s (APL) Q3FY23 EBITDA was 6% and 13% ahead of street and our estimates, respectively. Key takeaways: 1) Record sales volume of 605kte (up 50% YoY) on higher shipments across segments.

APL Apollo’s (APL) performance undershot consensus estimates. Key takeaways:
1) Margin was impacted by channel destocking leading to higher discounts to
distributors.

We retain a BUY rating on the stock with a TP of Rs 1,200/share (unchanged from the previous TP)