APL Apollo Tubes Ltd. share price target

Post results we have revised FY21E revenues upwards by 3.7% but FY22E downwards by 5.8% (lower volume assumptions). PAT for FY21E stands doubled and up by 28.3% for FY22E due to beat on EBITDA/ton & lower interest burn. Going ahead, along with volume growth we also expect EBITDA/ton to expand steadily led by operating leverage, cost savings and better product mix. Simultaneously balance sheet will also gain strength due to combined effect of shorter NWC cycle (10 days v/s 17 days FY20), deleveraging and high cash generation. At CMP, the stock is trading at EV/EBITDA of 8.1x FY22E. Our previous TP of Rs 1961 is achieved but we...

Post results we have revised FY21E revenues upwards by 3.7% but FY22E downwards by 5.8% (lower volume assumptions). PAT for FY21E stands doubled and up by 28.3% for FY22E due to beat on EBITDA/ton & lower interest burn. Going ahead, along with volume growth we also expect EBITDA/ton to expand steadily led by operating leverage, cost savings and better product mix. Simultaneously balance sheet will also gain strength due to combined effect of shorter NWC cycle (10 days v/s 17 days FY20), deleveraging and high cash generation. At CMP, the stock is trading at EV/EBITDA of 8.1x FY22E. Our previous TP of Rs 1961 is achieved but we...

APL Apollo Tubes (APL) reported better than expected profitability for Q1FY21 as its EBITDA/net profit were 27%/25% higher than our estimates. APL's net sales decreased by 45.9% YoY to Rs11 bn due to fall in sales volumes by 39% YoY to 238 kt. Despite weak sales, the company held on to its margins (EBIDTA /tonne fell only 4.3% YoY to Rs3,191). Its EBITDA, however, fell 43.1% YoY to Rs711 mn. Interest expense fell 25.1%...

APL Apollo Tubes Ltd (APTL) is the largest producer of Electric Resistance Welded (ERW) Steel Pipes in India, with a capacity to produce 2.5 Million Tonnes per annum. Steel Pipes has its applications across varied sectors and industries like Infrastructure Projects, Construction activities, Automobiles,...

APL Apollo Tubes (APL) Q4FY20 operating results were broadly in line with our estimates. Net sales decreased 10.6% YoY to Rs.18,087 mn led by lower volumes (-4.4% YoY to 401 kt) and lower steel prices. EBITDA fell 13.6% YoY to Rs. 1,199 mn. EBITDA/tonne fell 9.9% YoY to Rs2,989 due to lower volumes. Net profit fell 7.9% YoY...

alongside growth could result in possible rerating APL Apollo Tubes (APAT) reported good Q4FY20 results amidst tough times. Cons revenue de-grew 9.8% YoY to Rs 18,885m on back of 4.1% volume de-growth to 401,000 MT. While sales in metros have taken a back seat, Tier 2&3 cities are showing strong traction and now account for 75% of revenues (40% last year). EBITDA/ton declined 9.9% YoY to Rs 2,989 due to lower fixed cost absorption. PAT declined 1.5% YoY to Rs 608m. FY20 Revenue/EBITDA/PBT grew 8%/21.5%/30.6% to Rs77.2bn/4.8bn/2.9bn respectively. Volumes grew by 22.7% to 16,43,099 MT...

alongside growth could result in possible rerating APL Apollo Tubes (APAT) reported good Q4FY20 results amidst tough times. Cons revenue de-grew 9.8% YoY to Rs 18,885m on back of 4.1% volume de-growth to 401,000 MT. While sales in metros have taken a back seat, Tier 2&3 cities are showing strong traction and now account for 75% of revenues (40% last year). EBITDA/ton declined 9.9% YoY to Rs 2,989 due to lower fixed cost absorption. PAT declined 1.5% YoY to Rs 608m. FY20 Revenue/EBITDA/PBT grew 8%/21.5%/30.6% to Rs77.2bn/4.8bn/2.9bn respectively. Volumes grew by 22.7% to 16,43,099 MT...

The outbreak of COVID-19 globally has affected the supply chains of most companies beginning late March. We expect most of the companies under our coverage in mid-cap space to report fall in sales on a YoY basis during Q4FY20 due to the weak environment and lockout in the month of March. Lower sales are also likely to impact margins due to negative operating leverage. Some companies including battery manufacturers, Castrol are expected to post strong margin contraction. However, the serious impact on sales and profitability is likely to be felt during Q1FY21 when the impact of lockdown will be very prominent....

APAT reported volume growth of 53%/32% YoY/QoQ on consolidated basis for Q3FY20 at 4.8lakh ton. Robust volume performance was aided by Apollo Tricoat (71% QoQ rise in volumes @ 47kt) alongside APAT's core products.

APL Apollo Tubes (APL) results were broadly in line with our expectations. Net sales increased 25.8% YoY to Rs20 bn mainly led by strong volume growth (+52.6% YoY to 0.5 mn tonnes) partially offset by lower realization (-17.5% YoY to Rs42,489/tonne) due to lower steel prices. EBITDA jumped 171% YoY to Rs1.6 bn as EBITDA/ tonne improved 77.6% YoY to Rs3,342. Net profit jumped nearly 4.7x YoY to Rs742 mn. The company...