Buy APL Apollo Tubes; target of Rs 2000: Motilal Oswal

Motilal Oswal is bullish on APL Apollo Tubes has recommended buy rating on the stock with a target price of Rs 2000 in its research report dated July 24, 2025.

Broker Research

July 28, 2025 / 14:19 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on APL Apollo Tubes

APL Apollo Tubes (APAT) showed a healthy recovery in operating performance in 1QFY26 despite weaker macroeconomic conditions, higher employee costs (incl. one-off ESOP cost) and geopolitical headwinds. EBITDA grew 23% YoY, led by volume growth of 10% YoY and EBITDA/MT of INR4,683 (up 12% YoY). We expect the growth momentum to improve ahead, led by capacity expansion and demand recovery from railways, aviation and real estate infra projects. For FY26, management has guided for volume growth of 10-15% and EBITDA/MT of INR4,600-5,000. We largely maintain our FY26E/FY27E earnings and value the stock at 35x FY27E EPS to arrive at our TP of INR2,000. Reiterate BUY.

Outlook

We expect a CAGR of 19%/37%/44% in revenue/EBITDA/PAT over FY25- 27E. We value the stock at 35x FY27 EPS to arrive at a TP of INR2,000.
Reiterate BUY.

For all recommendations report, click here