Shares of APL Apollo Tubes have delivered 661 per cent returns to its shareholders in three years. The stock, which closed at Rs 134.67 on August 2, 2019, was trading at Rs 1,025.60 on BSE today. An amount of Rs 1 lakh invested in APL Apollo Tubes stock three years ago would have turned into Rs 7.61 lakh today.
In comparison, Sensex has risen merely 58 per cent during the period. The stock touched an intraday high of Rs 1,025.60 today, rising 4.58 per cent against the previous close of Rs 980.60 on BSE.
APL Apollo stock has gained after two days of consecutive fall. Shares of APL Apollo Tubes are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
In a year, the stock has gained 16 per cent and gained 0.23 per cent this year. The stock has risen 20 per cent in a month.
Total 0.13 lakh shares of the firm changed hands amounting to a turnover of Rs 1.29 crore on BSE. Market cap of the firm rose to Rs 25,410 crore. The stock hit a 52 week high of Rs 1,113.65 on December 16, 2021. On August 24, 2021, the stock hit a 52-week low of Rs 742.50.
Promoters' stake remained same at 34.52 per cent in Q1 against Q4 of last fiscal. Public shareholders owned 65.48 per cent at the end of June quarter against 65.48 per cent stake in the March quarter.
The number of mutual fund schemes holding shares of the firm remained unchanged at 20 in June quarter in comparison to the March quarter of 2022.
Number of foreign portfolio investors rose to 210 in the June quarter against 199 in the March quarter of previous fiscal.
1,48,712 public shareholders held 3.43 crore shares of the firm, amounting to a stake of 13.74 per cent with an individual share capital of up to Rs 2 lakh.
19 public shareholders held 36.46 lakh shares of the firm, amounting to a stake of 1.46 per cent with an individual share capital of over Rs 2 lakh.
Returns of Peers
The firm has outshined peers when it comes to returns to shareholders during the last three years. While SAIL stock zoomed 89.12 per cent in three years, Hindalco share climbed 138 per cent during the period. Tata Steel share could post 165 per cent gains and JSW Steel share managed to rise 194.51 per cent during the period.
The financial performance of the firm has been stellar in terms of net profit, sales and operating profit in the last four fiscals despite the coronavirus lockdown during which all economic activity came to a standstill.
The firm reported sales of Rs 13,063 crore in the last fiscal against sales of Rs 7,152 crore for fiscal ended 2019.
Net profit too rose to Rs 557.29 crore in March 2022 fiscal against Rs 148.25 crore in the fiscal ended 2019. Operating profit climbed to Rs 985.76 crore in the previous fiscal against Rs 404.55 crore in the fiscal ended 2019.
However, financial performance in the June quarter was not very encouraging.
Net profit fell 27.31 per cent to Rs 107.11 crore in Q1 from Rs 147.35 crore in Q1 of the last fiscal. Sales rose 35.68 per cent to Rs 3,438 crore in Q1 against Rs 2,534 crore in the corresponding quarter of last fiscal.
Analysing Q1 show
Motilal Oswal has maintained a buy call to APL Apollo Tubes after its Q1 earnings. "APL Apollo Tubes reported a weak operating performance with 14 per cent/ 33 per cent YoY decline in gross profit/EBITDA per MT, respectively, in 1QFY23. The result was adversely impacted by the industry-wide channel destocking prompted by the correction in domestic HRC prices and lower share of value-added products (VAP). We retain our FY23E/FY24E earnings as the firm is likely to maintain its growth trajectory underpinned by a strong demand outlook. We value the stock at 33x FY24E EPS to arrive at our target price of Rs 1,190. Reiterate BUY."
Sharekhan has given a price target price of Rs 1,100 and maintained its buy call.
"Q1 operating profit of Rs 194 crore (down 27.1 per cent QoQ) was 4 per cent above our estimate led by a beat in gross margins amid better realisations and a slight improvement in mix of value-added products. In-line sales volume of 423 kt, down 23 per cent QoQ. Sales volumes across product categories declined by 17-43 per cent QoQ due to channel de-stocking amid a steep steel price fall. We maintain a Buy on APL Apollo Tubes with an unchanged price target of Rs 1,100 as strong earnings growth outlook and valuation gap with listed peers makes risk-reward scenario favourable. APL Apollo Tubes trades at 23.9 times FY24E EPS versus 52 times for Astral," the brokerage said.
About APL Apollo Tubes
The firm manufactures and exports galvanised steel tubes, galvanized steel pipes, and welded black pipes and tubes. The company's products include black hollow section and round pipe, pre-galvanized tubes, structural steel tubes, galvanized tubes, MS black pipes and hollow sections. The firm has an extended distribution network of warehouses and branch offices in 29 cities across the country catering to domestic as well as 20 countries worldwide.
( Disclaimer: This article is for information purpose only and should not be construed as a stock recommendation. Pls consult your financial advisor or an independent financial planner before taking any position in the stock.)
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