Motilal Oswal has given Buy recommendation for APL Apollo Tubes recommended buy rating on the stock with a target price of Rs 1270 in its researc with a target price of Rs. 1270 in its research report issued on May 14, 2022

Motilal Oswal’s research report on APL Apollo Tubes

APL Apollo Tubes (APAT) reported a robust operating performance. This was particularly led by strong 27% YoY volume growth and higher Gross Profit/ MT of INR9,639 (up 8% YoY) due to strong demand for structural tubes and higher mix of value-added products. EBITDA/MT remained flat at INR4,823. We retain our FY23E/FY24E earnings as APAT is expected to maintain its growth trajectory on a strong demand outlook.

Outlook

We value the stock at 35x FY24E EPS to arrive at our TP of INR1,270. We reiterate our BUY rating.

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