Buy APL Apollo Tubes; target of Rs 1190: Motilal Oswal

Motilal Oswal is bullish on APL Apollo Tubes recommended buy rating on the stock with a target price of Rs 1190 in its research report dated July 27, 2022.

Broker Research

July 29, 2022 / 23:30 IST

Motilal Oswal's research report on APL Apollo Tubes

APL Apollo Tubes (APAT) reported a weak operating performance with 14%/ 33% YoY decline in Gross Profit/EBITDA per MT, respectively, in 1QFY23. The result was adversely impacted by the industry-wide channel destocking prompted by the correction in domestic HRC prices and lower share of value added products (VAP). We retain our FY23E/FY24E earnings as APAT is likely to maintain its growth trajectory underpinned by a strong demand outlook.

Outlook

We value the stock at 33x FY24E EPS to arrive at our TP of INR1,190. Reiterate BUY.

For all recommendations report, click here

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347