APL Apollo Tubes Ltd. share price target

APL Apollo Tubes (APL) reported better than expected profitability for Q3FY21 as its EBITDA was 27% higher than our estimate. The EBIDTA/tonne at Rs4,780 (+43% YoY) was a strong beat and was led by better product mix and scarcity of raw material (steel)/ tubes. APL's EBIDTA jumped 45% YoY to Rs2.3 bn. Higher operating cash flow for 9MFY21 at Rs 8.5bn (Rs5.1 bn in FY20) and fall in net working capital days to 8 days...

5. Interest Cost declined by 41% to `159mn 2. Given the strong commentary in Q1 about volume growth, the street was optimistic going into Q2 earnings. This optimism led rally was accentuated with strong volume growth of ~32% in Q2FY21 released by the company in pre-quarterly update. 3. The second quarter delivered robust performance with healthy traction in revenue (34% YoY) led by superior volume growth, sharp improvement in EBITDA per ton and...

We recommend a BUY on APL APOLLO TUBES LTD with a Target Price of Rs.3,428an upside of 9% from CMP of Rs. 3,145 and Stop Loss Rs. 3,000.

We revise our Revenue/EBITDA/PAT estimates for FY21/22 on the back of a healthy growth commentary and likely improvement in margins supported by market share gains. Maintain BUY with a revised TP of Rs. 3,565/share as we raise our target EV/EBITDA multiple to 12x (10x earlier)

APL Apollo Tubes (APL) reported better than expected profitability for Q2FY21 as its EBITDA was 7% higher than our estimate. It reported strong sales volume at 481kt (+31% YoY). EBIDTA /tonne at Rs 3,514 (+78% YoY) was 13% better than our forecast. Its EBIDTA jumped 135% YoY to Rs1.7 bn. Interest cost declined by 41% to Rs159 mn as...

3. We recommend investors to ADD on dips as the company has a strong balance sheet and leading position in the industry which allows it to positioned well to capitalize on these opportunities. 3. Net Working Capital (NWC) cycle stood at 10 days in Q1FY21 vs. 20 days in FY20....

We recommend a BUY on APL APOLLO TUBES LTD with a Target Price of Rs. 2,376 an upside of 10% from CMP of Rs. 2,160 and Stop Loss Rs. 2,052.

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%...