Axis Securities maintains ‘buy’ on APL Apollo Tubes, target price Rs 2,370

Axis Securities has maintained its ‘Buy’ rating on APL Apollo Tubes with a target price of Rs 2,370. The company reported Ebitda of Rs 161 crore, up 171%. This resulted in a sharp 78% rise in Ebitda/ tonne to Rs 3,342. The rising contribution from high margin Apollo Tricoat products and operating leverage aided by higher margin products is also expected to be a positive. While steel prices have bottomed out, no further inventory losses are expected as per the company management. Shares of APL Apollo closed at Rs 2,095, up 3.9%.