APL Apollo Tubes Ltd. share price target

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

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 1,100/share (from Rs 1,215/share) and continue to value it at 30x PE of FY24E EPS.

They have no plans to raise funds as internal cash flow generation is strong and are planning to become debt free. Their focus is on innovating new shapes and sizes. Management continues to remain confident of maintaining revenue growth...

We retain a BUY rating on the stock with a TP of Rs 1,215/share and continue to value it at 30x PE of FY24E EPS

We visited APL Apollo Tubes’ (APL) Murbad, Maharashtra facility and met with multiple APL distributors. Murbad was Lloyds steel plant, which APL acquired in CY10 for a cash consideration of Rs400mn with a capacity of 90,000te. The same has been ramped up to 0.35mtpa over past seven years, with the introduction of direct forming technology (DFT) and cold rolling and Galva (GP/GI) capacity.