By Malvika Gurung
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.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.