Shares of APL Apollo Tubes have logged stellar returns for investors in the last three years. APL Apollo Tubes shares, which closed at Rs 127.42 on March 27, 2020 hit a high of Rs 1222 on March 27, 2023, translating into gains of 859 per cent during the period. It suggests the stock has grown over nine times in the last three years.
In comparison, Sensex has risen 116 per cent during the period. An investment of Rs 1 lakh in the stock a year ago would have grown to Rs 9.59 lakh today. The stock closed at Rs 1208 in the previous session. It was trading flat at Rs 1200 in early trade today. The large cap stock also hit a high of Rs 1222 on BSE. APL Apollo Tubes stock has gained 10% this year and risen 33.44% in a year. The stock hit a 52-week high of Rs 1336 on February 17, 2023 and a 52-week low of Rs 801.40 on May 12, 2022.
A total of 2613 shares of the firm changed hands, amounting to a turnover of Rs 31.36 lakh on the BSE. The market cap of the company fell to Rs 33,347 crore on BSE.
In terms of technicals, the relative strength index (RSI) of APL Apollo Tubes stands at 49.6, signaling it’s neither oversold nor overbought zone. APL Apollo Tubes stock has a one-year beta of 0.7, indicating low volatility during the period.
In Q3 of this fiscal, public shareholders held 68.85 per cent stake or 19.09 crore shares in the firm. Five promoters held 31.15 per cent stake or 8.63 crore shares in the last quarter. 1,66,719 public shareholders held 4.14 crore shares of the firm, amounting to a stake of 14.96 per cent with an individual share capital of up to Rs 2 lakh. 31 public shareholders held 96.09 lakh shares of the firm, amounting to a stake of 3.47 per cent with an individual share capital of over Rs 2 lakh.
Financials
The firm missed estimates in the earnings for the quarter ended December 2022. It posted a profit of Rs 169.18 crore in the December quarter against a profit of Rs 127.88 crore in the December 2021 quarter. Analysts, on an average, had expected a profit of Rs 178 crore, according to IBES data from Refinitiv. Sales surged to Rs 4327 crore in Q3 against Rs 3230 crore in the corresponding quarter of the previous fiscal. EBITDA climbed 35% to Rs 272.85 crore in the December quarter against Rs 202.28 crore in the December quarter of the previous fiscal.
According to annual earnings for fiscal ended March 2022, the firm reported a 71.86 per cent rise in profit to Rs 618.98 crore against a profit of Rs 360.16 crore in the year ago period. Sales zoomed 53.69% to Rs 13,063 crore in the last fiscal against Rs 8,500 crore sales for the fiscal ended March 2021.
Here’s a look at what analysts and brokerages said on the prospects of the stock.
Abhijeet from Tips2trade said, “Strong fundamentals in terms of consistent profitability & steady ROCE coupled with overall global bullish sentiment in 2021 & H1FY23 led to a strong uptrend in APL Apollo Tubes. However now the stock is going through a corrective phase & is very range bound with strong support at Rs 1171 on the Daily charts. A strong close above resistance of Rs 1275 could lead to higher targets of Rs 1338-1395 in the near term.”
ICICI Securities has a buy call on the stock with a target of Rs 1375
Axis Securities has a buy call with a target price of Rs 1,390-1,440. One should fix stop loss at Rs 1,160. The brokerage sees an upside of 12-16% in a year.
“APL Apollo Tubes on the weekly chart has decisively broken out above the ‘consolidation zone’ between Rs 1,200-1,000 levels in mid of February 2023. It retested the breakout area and is expected to continue an uptrend. The stock is holding above medium term upward sloping trendline which is in place from the start of August 2022. The stock is forming a higher high-low on the weekly chart. This formation indicates a positive uptrend. The weekly strength indicator RSI is in bullish mode and weekly RSI crossover above its reference line generated a buy signal. The above analysis indicates an upside of Rs 1,390-1,440 levels,” said the brokerage.
IIFL expects APL Apollo Tubes to deliver 27 per cent EPS CAGR over FY22-25 as large diameter tubes gain acceptance for building construction and drive ramp-up of volumes from the new Raipur facility. This, it said, will also increase share of value-added products to 75 per cent by FY25 and aid margin expansion. “While 29 times FY24 PE is rich, volume delivery should steer further rerating,” it said.
APL Apollo Tubes Limited is the largest producer of structural steel tubes in India. It has an extended distribution network of warehouses and branch offices in 29 cities across the country catering to domestic as well as 20 countries worldwide. The Delhi-based firm offers over 1,100 varieties of Pre- Galvanized Tubes, Structural Steel Tubes, Galvanized Tubes, MS Black Pipes and Hollow Sections, making APL Apollo is one of leading branded steel products manufacturers in India.
( Disclaimer: This article is for information purpose only and should not be construed as a stock recommendation. Pls consult your financial advisor or an independent financial planner before taking any position in the stock. Business Today will not be responsible for any losses arising out of dealing in this stock.)
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