Apollo Pipes jumps 10% amid heavy volumes, strong growth outlook

So far this year, shares of Apollo Pipes have trailed 4 percent

Shares of Apollo Pipes rallied over 10 percent to Rs 665 on September 3 amid heavy volumes and strong growth outlook. Around 1.6 million equity shares exchanged hands at both NSE and BSE intra-day deals, significantly exceeding the one-week average of 0.1 million equity shares.

So far this year, shares of Apollo Pipes have trailed 4 percent, underperforming benchmark Nifty 50's 16 percent rise during the same period. Earlier, Apollo Pipes had hit a 52-week high of Rs 798 apiece on February 9, 2024.

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Apollo Pipes manufactures products primarily tailored to the plumbing, sanitation, water
supply, infrastructure, and agriculture sectors. Operating from five cutting-edge manufacturing facilities with a combined capacity of 156,000 MTPA, the company offers a diversified portfolio of over 1,600 high-quality products, including CPVC, UPVC and HDPE pipes and fittings, bathroom products, water tanks and solvents.

In its annual report, the company's management said that they aim to ramp up volumes to 55,000 tons over the next 2-3 years from 35,000 tons in FY25. "We will need some capacity addition by then, for which we will deploy funds from the operational cash flows generated," they noted.

Apart from that, they plan to commission a new plant, build two product lines, and enhance routine capacity additions to existing facilities.

In the recently concluded June quarter, Apollo Pipes' revenue stood at Rs 240 crore versus Rs 260 crore. Its net profit, however, declined to Rs 10 crore in Q1FY25 as compared to Rs 13 crore in the year-ago period.

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