Buy APL Apollo Tubes, target price Rs 1490: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on APL Apollo Tubes with a target price of Rs 1490. The current market price of APL Apollo Tubes is Rs 1171.85.

APL Apollo Tubes, incorporated in the year 1986, is a Mid Cap company (having a market cap of Rs 32325.68 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 31-03-2023, the company has reported a Consolidated Total Income of Rs 4449.05 Crore, up 2.60 % from last quarter Total Income of Rs 4336.40 Crore and up 5.28 % from last year same quarter Total Income of Rs 4225.74 Crore. Company has reported net profit after tax of Rs 201.82 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 31-03-2023, the company has a total of 28 Crore shares outstanding.

Investment Rationale

The stock is the market leader and pioneer in this industry, with constant endeavor to expand the applications of structural tubes. The brokerage expect APAT to continue to lead from the front and gain a larger pie in the growing structural tube market.

Promoter/FII Holdings
Promoters held 31.15 per cent stake in the company as of 31-Mar-2023, while FIIs owned 25.71 per cent, DIIs 11.08 per cent.