APL Apollo Tubes Ltd. share price target

APL Apollo Tubes Q2FY22 EBITDA was slightly weaker than our forecast. EBITDA stood at Rs2,222 mn (9% below our forecast). EBITDA/t expanded by 48% YoY to Rs5,199, although sequentially it fell 24%. Nevertheless, EBITDA/t over Rs5,000 is likely to be sustainable over the coming one year in our view; APL aims to increase EBITDA/t to Rs6-7,000/tonne in coming 2-3 years as it expands its Raipur facility where it will have 0.5 mtpa of high-margin products. Also, APL targets strong volume growth of 2.5 mn...

We analyzed the shifting trends in the Structural Tube industry, driven by growing consumption of steel tubes in Construction projects, coupled with growing acceptance and increasing applications of steel tubes. Key drivers of APAT's performance include: a) growing usage of structural tubes as a replacement to RCC, b) first-mover advantage by installing DFT in India, and c) leadership position to help benefit from this shift....

We recommend a BUY with TP of Rs. 1,780/share.

We retain a BUY rating on the stock and value it at 30x PE of FY24E EPS, to arrive at a revised TP of Rs 1,920 (Rs 1,595 earlier).

APL Apollo Tubes (APL) reported strong improvement in profitability for Q1FY22; its EBITDA was a strong beat to our forecast. APL's EBIDTA/tonne jumped to Rs6,825 (+129% YoY, +44% QoQ) driven by 1) strong demand, 2) better product mix and 3) higher contribution from high-margin Apollo Tricoat Products. Despite 14% QoQ fall in...

We retain a BUY rating on the stock and value the stock at 30x PE of FY23E EPS, to arrive at a revised TP of Rs 1,595 (Rs 1,054 earlier).

APL Apollo Tubes (APL) reported better than expected profitability for Q4FY21 as its EBITDA was 19% higher than our estimate. EBIDTA/tonne at Rs4,742 (+59% YoY) was a strong beat and was led by better product mix and scarcity of raw material (steel)/...

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...

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.