APL Apollo Tubes Ltd. share price target

APL Apollo tubes (APT) reported its Q2FY19 numbers which came in below our expectations. Net revenue grew at a healthy pace of 25.7% YoY on the back of 14-15% increase in realizations and a muted volume growth of 7% YoY. The operating profit disappointed registering a degrowth of 8.7% YoY due to lower share of high margin products. Poor operational performance, lower other income and higher interest cost impacted profitability as net profit declined 34.4% YoY.

Consolidated Revenues of Rs. 1,676 Cr. (45%/10% YoY/QoQ) were driven by a healthy 14% volume growth and sharp 28% rise in realization across products aided by higher HRC prices.

APL Apollo Tubes (APT) reported strong set of numbers in Q1FY19 led by robust growth in volumes. Net revenue for the quarter grew by 45.1% yoy on the back of 14% volume growth and ~28% increase in realizations. However, net profit growth was restricted to 21% due to subpar operational performance, lower other income and higher interest cost.

APL Apollo Tubes (APT) reported mixed set of numbers in Q4FY18 which were marginally lower than our estimates. Sales volume during the quarter grew at a strong 28% which boosted total income growth to 40.4%. However, PAT de-grew by 10.9% yoy mainly on account of lower margins and higher tax for the company.

We hosted an NDR for APL Apollo Tubes (APAT) in Hong Kong & Singapore. Key takeaways: 1) 64% of revenue comes from building material segment, 2) strong demand for products from latest technology Direct Forming Technology (DFT), 3) full capacity of 2m ton...

APL Apollo Tubes: Capacity additions on track, focus remains on volume growth, We estimate earnings growth of 28% CAGR over FY17-20E, Strong balance sheet, improving cash flows; Reliance Industries: Global demand-supply dynamics favourable for GRM's, Pet-coke gasification project to improve GRM'..

We expect APL Apollo Tubes to report healthy 20% volumes CAGR over FY17-20E driven by uptick in demand, focus on higher margin value added products, rising contribution of niche DFT and GI/GP Pipes and benefits of operating leverage. We expect APAT to report 29% earnings CAGR over FY17-20E.

APL Apollo reported steady Q3FY18 result, as Net revenue increased 39.3%, while Net profit was up 23.4% yoy. Higher sales volume boosted total income; however rise in material cost impacted operational margins. We remain positive on the business given its healthy gains across exports and OEMs segments, which we expect to continue.

APL Apollo Tubes (APAT) in 2QFY18 posted consolidated revenues of Rs. 1345 Cr. (up 45% Y-o-Y, 16% Q-o-Q) due to strong 20% volume growth and higher realizations reported in Q2FY18. Strong Volume performance was supported by new clients in OEMs (grew 107% Y-o-Y)

The next generation DFT was one of the most favourite topic. DFT has enabled APAT to offer customized products at a lower cost and in less time than its competitors. It has also given access to overseas markets including US, Europe and Middle East. APAT expects to make 8-10% better margins using this technology. Investors also discussed 2QFY18 results which were in line with expectations. APAT reported impressive sales volume growth of 18% and earnings growth of 21% YoY despite GST implementation headwinds. The management highlighted that most of its 400 products are specialized and are used...