Buy APL Apollo Tubes, target price Rs 1225: ICICI Securities

ICICI Securities has buy call on APL Apollo Tubes with a target price of Rs 1225. The current market price of APL Apollo Tubes is Rs 1182.6.


APL Apollo Tubes, incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 32802.69 Crore) operating in Metals - Ferrous sector.

APL Apollo Tubes key Products/Revenue Segments include Pipes & Tubes Steel, Scrap and Export Incentives for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 3980.81 Crore, up 15.49 % from last quarter Total Income of Rs 3446.87 Crore and up 28.61 % from last year same quarter Total Income of Rs 3095.28 Crore. Company has reported net profit after tax of Rs 150.19 Crore in latest quarter.

The company’s top management includes Mr.Sanjay Gupta, Mr.Rahul Gupta, Mr.Abhilash Lal, Mr.Anil Kumar Bansal, Ms.Neeru Abrol, Mr.Virendra Singh Jain, Mr.Vinay Gupta, Mr.Romi Sehgal, Mr.Ashok K Gupta, Mr.Ameet Kumar Gupta. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2022, the company has a total of 28 Crore shares outstanding.

Investment Rationale
The brokerage is also positive on APL Apollo as it is a downstream player, hence is relatively insulated
from adverse price movements.

Promoter/FII Holdings
Promoters held 31.15 per cent stake in the company as of 31-Dec-2022, while FIIs owned 24.31 per cent, DIIs 10.42 per cent.