APL Apollo Tubes- Volume led growth to sustain: ICICIdirect

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

ICICIdirect.com's report on APL Apollo Tubes (APL)

"Apollo Tubes (APL), formerly known as Bihar Tubes, is one of the leading ERW steel tubes manufacturers in India. The product range of the company comprises four major types of pipes/tubes, viz. MS black, galvanised tubes, pre galvanised tubes and hollow sections. MS black contributes ~25% of total sales and has an operating margin of ~5%. Hollow sections contribute ~35% of total sales with 8% operating margin, galvanised tubes contribute ~16% of total sales with ~8% operating margin while pre-galvanised tubes comprise 24% of total sales with operating margin of ~14%. The company has been a pioneer in pre-galvanised sheets and pipes in India. The company currently has five plants in India with aggregate capacity of over 8 lakh tonnes per annum (LTPA). Two of the five plants are in Sikandrabad (UP) with capacity of 1.8 LTPA and 70,000 TPA. Others are in Hosur (Tamil Nadu) with capacity of 3 LTPA, Bengaluru with capacity of 80,000 TPA and Maharashtra with capacity of 1.7 LTPA."

"During FY10-14, APL Apollo’s revenues have grown at a CAGR of 42.8% while volume has registered growth of 36.2%. Going forward, we expect the growth momentum to continue as the company is expanding its capacity to 1 million tones per annum (MTPA) from 0.8 MTPA currently. Total debt on the books as on March 31, 2014 stands at Rs 479.9 crore out of which long term debt is to the tune of Rs 139.6 crore while working capital loan is to the tune of Rs 340.3 crore. At the current market price, the stock is trading at 14.6x FY14 P/E and 8.1x FY14 EV/EBITDA", says ICICIdirect.com research report.

For all recommendations, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More