Buy APL Apollo Tubes, target price Rs 1225: ICICI Securities

ICICI Securities has buy call on APL Apollo Tubes Lwith a target price of Rs 1225. The current market price of APL Apollo Tubes is Rs 1039.95.

APL Apollo Tubes, incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 26106.76 Crore) operating in Metals - Ferrous sector.

APL Apollo Tubes key Products/Revenue Segments include Pipes & Tubes Steel, Scrap and Export Incentives for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3980.81 Crore, up 15.49 % from last quarter Total Income of Rs 3446.87 Crore and up 28.61 % from last year same quarter Total Income of Rs 3095.28 Crore. Company has reported net profit after tax of Rs 150.19 Crore in latest quarter.

The company’s top management includes Mr.Sanjay Gupta, Mr.Rahul Gupta, Mr.Abhilash Lal, Mr.Anil Kumar Bansal, Ms.Neeru Abrol, Mr.Virendra Singh Jain, Mr.Vinay Gupta, Mr.Romi Sehgal, Mr.Ashok K Gupta, Mr.Ameet Kumar Gupta. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-06-2022, the company has a total of 25 Crore shares outstanding.

Investment Rationale
The brokerage is also positive on the counter as being adownstream player, it is relatively insulated from adverse price movements.

Promoter/FII Holdings
Promoters held 34.52 per cent stake in the company as of 30-Jun-2022, while FIIs owned 24.64 per cent, DIIs 11.17 per cent.