IDBI Capital maintains buy on APL Apollo Tubes, raises target price to Rs 2,486

IDBI Capital has a buy call on APL Apollo Tubes Ltd. with a target price of Rs 2486.0 . The current price of APL Apollo Tubes Ltd. is Rs 2066.7 Time period given by the analyst is Long Term when APL Apollo Tubes Ltd. price can reach defined target. . .

APL Apollo Tubes Ltd., incorporated in 1986, has a market cap of Rs 5139.32 crore.

Company Financials


For the quarter ended 31-12-2019, the company has reported a Consolidated sales of Rs 2040.45 Crore, up 28.83 % from last quarter Sales of Rs 1583.81 Crore and up 25.83 % from last year same quarter Sales of Rs 1621.64 Crore Company has reported net profit after tax of Rs 83.25 Crore in latest quarter.

The company’s top management includes Mr.Abhilash Lal, Mr.Anil Kumar Bansal, Mr.Ashok K Gupta, Mr.Romi Sehgal, Mr.Sanjay Gupta, Mr.Vinay Gupta, Mr.Virendra Singh Jain, Ms.Neeru Abrol. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2019, the company has a total of 24,867,265 shares outstanding.

Investment Rationale

The brokerage continues to believe the worst phase of profitability is complete for APL as steel prices have recovered slightly after falling sharply prior to Q3. IDBI Capital anticipates volumes to grow at CAGR of18% over FY19-22 to 2.2 MT. APL is trading at an attractive 12 times FY22 estimated P/E, the brokerage said.