APL Apollo Tubes Limited (APL) is the leading manufacturer of Structural Steel Tubes in India, boasting an extensive distribution network spanning 29 cities within the country and catering to customers in 20 countries worldwide. Recognized for its diverse product range, which includes over 1,100 varieties like Pre-Galvanized Tubes, Structural Steel Tubes, Galvanized Tubes, MS Black Pipes, and Hollow Sections, APL Apollo is a prominent name in the realm of branded steel products in India. Based in Delhi NCR, the company is committed to strengthening India’s infrastructure through its advanced facilities, a robust 3-tier distribution network, and partnerships with over 800 dealers. APL Apollo, in collaboration with its subsidiaries, operates 10 manufacturing facilities strategically located in Uttar Pradesh, Tamil Nadu, Chhattisgarh, Telangana, and Karnataka, boasting a current manufacturing capacity of 3.6 million tonnes. The company aims to reach a capacity of 5 million tonnes by FY25.
With a unique position in the market, APL Apollo benefits from being an early entrant in the structural steel tubes sector, supported by an innovative and comprehensive product lineup. Foreseeing sustained high growth, the projection indicates a revenue Compound Annual Growth Rate (CAGR) of 28% from FY23 to FY26E, driven by robust volume growth, margin expansion, and capacity enhancement. The recommendation is to “Accumulate,” with a target price set at Rs 2,077, reflecting a potential upside of 38%, based on a Price-to-Earnings (PE) multiple of 30.4X to FY26E Earnings Per Share (EPS) of Rs 68.3.