Consolidated revenues beat estimates, driven by strong volume growth. EBITDA/tonne surged rose sharply, supported by higher realisation in Q3FY2025 compared to Q2FY2025. Operating and net profits were higher than estimates. Management may surpass its 3.2 million tonnes sales volumes guidance for FY2025 driven by a shift in market share from sponge iron steel pipes to HR-coiled steel pipes. EBITDA/tonne expected to reach Rs. 4,500 by Q4 2025. Its capacity target of 5.5 million tonnes by FY2026 stay on track with 6.1 LTPA greenfield expansions and 0.9 LTPA brownfield expansions.
OutlookWe maintain a Buy on the stock with an unchanged PT of Rs. 1850, considering its strong outlook led by capacity additions and structural demand drivers.
For all recommendations report, click hereDisclaimer: 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.
APL Apollo Tubes - 21012025 - khanDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
