🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Motilal Oswal Sees 28% Upside and Strong Growth Momentum for Top Tube Maker

Published 05-06-2023, 12:46 pm
MOFS
-
APLA
-
NSTc1
-

By Malvika Gurung

Investing.com -- The domestic brokerage major Motilal Oswal (NS:MOFS) continues to remain bullish on the country’s largest Structural Steel Tubes producer, APL Apollo (NS:APLA) Tubes (APAT).

The brokerage firm has reiterated its ‘Buy’ call on the tube company and has set a target price of Rs 1,490/share on the stock.

At APL Apollo Tubes’ current market price, Motilal Oswal’s target price indicates a potential upside of 27.9%.

The tube manufacturer continues to remain Motilal Oswal’s top pick given its leadership position in the industry, which is witnessing growing applications, increasing adoption for government projects, rising consumption of structural steel tubes in public infrastructure, residential and commercial buildings, warehouses, factories, agriculture and other construction works.

All these tailwinds are expected to work in the favour of APL Apollo Tubes.

The domestic brokerage firm believes that APAT will continue to lead from the front and gain a larger pie in the growing structural tube market.

Prominent triggers that will sustain APAT’s growth momentum going forward include the company’s

  • rising demand across segments,
  • increased product penetration with the help of a robust distribution network,
  • an increase in the share of VAP, thus driving margins,
  • the introduction of Apollo Mart, and
  • Strong leadership position.

MS has projected APAT’s revenue/EBITDA/PAT CAGR of 15%/35%/40% over FY23–25 and values the mid-cap stock at 33 times the estimated FY25 EPS.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.