Buy APL Apollo Tubes; target of Rs 1330: Motilal Oswal

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26 Aug, 2025 12:21

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Motilal Oswal's research report on APL Apollo Tubes

APL Apollo Tubes (APAT)’s long-term growth story remains intact underpinned by growing application and rising consumption of structural steel tubes in residential & commercial buildings, warehouses, factories, agriculture and other infrastructure works. The industry, post-inventory destocking in the last quarter because of higher steel prices, is now witnessing channel re-stocking led by correction in steel prices. From our channel checks, we sense the overall demand scenario to be better with channel re-stocking happening in anticipation of a stable or marginally higher steel price. Primary steel (HRC) price declined from the all-time high level and accordingly the gap between primary and secondary steel prices narrowed. Overall margins of the company are expected to get a boost with the commissioning of Raipur plant by 3QFY23, which offers value-added products.

Outlook

We project a revenue/EBITDA/PAT CAGR of 11%/24%/32% over FY22-24, respectively. We value the stock at 34x Sep'24E EPS to arrive at our TP of INR1,330. Maintain BUY.

More Info

At 11:29 hrs APL Apollo Tubes was quoting at Rs 1,117.95, down Rs 7.60, or 0.68 percent.

It has touched an intraday high of Rs 1,130.55 and an intraday low of Rs 1,103.20.

It was trading with volumes of 199,425 shares, compared to its thirty day average of 52,780 shares, an increase of 277.85 percent.

In the previous trading session, the share closed down 1.89 percent or Rs 21.65 at Rs 1,125.55.

The share touched its 52-week high Rs 1,177.00 and 52-week low Rs 750.00 on 06 October, 2022 and 25 October, 2021, respectively.

Currently, it is trading 5.02 percent below its 52-week high and 49.06 percent above its 52-week low.

Market capitalisation stands at Rs 27,980.11 crore.

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APL Apollo Tubes - 111022 -moti