Apl Apollo Tubes (APAT) Earnings: 1Q Net Income Falls Short of Estimates Despite 23% Growth

Apl Apollo Tubes on Smartkarma

Analyst coverage of APL Apollo Tubes on Smartkarma features insightful reports by Rahul Jain. In one report titled “APL Apollo Tubes: Volume Momentum Intact; Margin Expansion and Capex Execution Key to Valuations,” Jain highlights the company’s strong Q4 FY25 performance. With significant growth in volumes, EBITDA, and net profit, management aims for a 20% volume growth and Rs5,000/ton EBITDA in FY26, projecting a 55% EPS growth for the year. This positive outlook is supported by the stock trading at around 39x FY26E earnings, backed by robust internal cash generation and low leverage.

In another report, “APL Apollo Tubes (APAT IN) Stepping up the Gas on Capacity Expansions,” Jain discusses how APL Apollo is increasing its capex to drive growth in high-margin products, including new segments like heavy structural tubes and solar structures. Despite subdued margins from weak steel prices, the company’s strong execution track record and RoCE above 25% inspire confidence in its growth potential. With sales volumes growing at an 18% CAGR, APL Apollo’s stock is trading at 65x TTM P/E, reflecting optimism and trust in the company’s ability to execute on its growth strategy.

A look at Apl Apollo Tubes Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores for APL Apollo Tubes, the company’s long-term outlook appears promising. With above-average scores in Dividend, Growth, Resilience, and Momentum, APL Apollo Tubes seems well-positioned to deliver stable returns and sustainable growth over time. While the Value score is lower in comparison, the overall positive ratings across other key factors signal a favorable trajectory for the company in the foreseeable future.

APL Apollo Tubes Ltd. is a manufacturing and exporting company specializing in galvanized steel tubes, galvanized steel pipes, and welded black pipes and tubes. With solid ratings in key performance indicators such as Dividend, Growth, Resilience, and Momentum, APL Apollo Tubes demonstrates resilience and growth potential in the competitive steel industry. Investors looking for a company with a balanced approach to financial performance and market momentum may find APL Apollo Tubes a compelling long-term investment choice.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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