APL Apollo Tubes Ltd., incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 20948.81 Crore) operating in Metals – Ferrous sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2544.51 Crore, down -2.12 % from last quarter Total Income of Rs 2599.61 Crore and up 128.27 % from last year same quarter Total Income of Rs 1114.68 Crore. Company reported net profit after tax of Rs 168.42 Crore in latest quarter.
Investment Rationale
APAT is expected to report higher volumes in coming quarters, as demand picks up. Besides increasing VAP in overall mix, the brokerage believes APAT is riding high on higher steel prices. The true reflection of APAT’s EBITDA/t will be visible once steel prices start falling in FY23. APAT’s focus on value addition, innovation and market creation helps in driving higher return ratios and market leadership. It remains positive on long- term structural volume growth and increase our valuation multiple to 30x FY23E EPS (earlier 25x) to arrive at a TP of Rs1,668. Despite the upgrade, it does not see any meaningful upside and reiterates REDUCE rating.
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