13 October 2021
Company Update | Sector: Others
APL Apollo Tubes
BSE SENSEX
60,737
S&P CNX
18,162
CMP: INR855
TP: INR1,035 (+21%)
Buy
Growing applications, paving way for a growth phase
Stock Info
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
Free float (%)
APAT IN
166
213.5 / 2.8
1050 / 266
-12/15/156
450
63.2
We analyzed the shifting trends in the Structural Tube industry, driven by growing
consumption of steel tubes in Construction projects, coupled with growing acceptance
and increasing applications of steel tubes. Key drivers of APAT’s performance include:
a) growing usage of structural tubes as a replacement to RCC, b) first-mover advantage
by installing DFT in India, and c) leadership position to help benefit from this shift.
Integration of structural tubes in Construction projects
Financials Snapshot (INR b)
Y/E MARCH
2022E 2023E 2024E
Sales
117.8 149.1 170.7
EBITDA
9.0 11.3 13.6
Adj. PAT
5.6
7.4
9.0
EBITDA margin (%)
7.7
7.6
8.0
Cons. Adj. EPS (INR) 20.5 26.7 32.5
EPS Gr. (%)
56.8 30.4 21.9
BV/Sh. (INR)
85.2 110.4 141.2
Ratios
Net D:E
0.1
-0.1
-0.2
RoE (%)
27.9 27.3 25.9
RoCE (%)
25.9 26.7 26.2
Payout (%)
6.6
5.6
5.4
Valuations
P/E (x)
41.8 32.0 26.3
EV/EBITDA (x)
26.3 20.6 16.7
Div. Yield (%)
0.2
0.2
0.2
FCF Yield (%)
0.4
2.1
3.0
Shareholding pattern (%)
As On
Jun-21 Mar-21
Promoter
36.9
37.0
DII
9.4
10.0
FII
25.7
24.2
Others
28.0
28.8
FII Includes depository receipts
Stock Performance (1-year)
APL Apollo Tubes
Sensex - Rebased
1,000
800
600
400
200
Jun-20
38.4
15.5
0.0
46.1
India is currently witnessing growing acceptance for structural tubes in
Construction projects due to a multitude of benefits. Structural tubes offer:
i) 40-50% less dead weight, ii) higher strength-to-weight ratio, iii) higher
load carrying capacity, iv) faster completion time, v) higher carpet areas, etc.
when compared to RCC structures.
From an environmental point of view, structural steel tubes cause no air
pollution, can be recycled, and the used steel has a good monetary value
even after decades.
The Structural Steel Tube market, as percentage of steel consumption,
across the globe/Europe/North America stood at 9%/11%/7% as against 4%
in India. Usage of structural steel tubes in Construction projects (in India) is
currently pegged at just 10-15%. This is due to non-availability of large size
tubes, limited size range, large MOQ (minimum order quantity), high lead
time, and wastage.
In the domestic market, overall cost per sq. ft. for an RCC structure is
~INR4,000, whereas for a steel tube structure it stands ~INR4,200.
Completion time for construction of steel tube structures is significantly
lower (completion time for a ‘G+8’ building takes 2-3 years for RCC
structures, whereas for steel tube structures the duration is just 9-18
months), leading to lower interest cost, faster turnaround time, and higher
cost saving
.
Global steel tube players have better realizations and higher revenue share
from Building Material and Infrastructure (20-40%), leading to higher
operating margin. APAT’s global counterparts have operating margin in the
14-19% range (refer
Exhibit 4),
as compared to APAT’s 8% (as on FY21).
Going forward, we expect the application of structural steel tubes to
increase significantly, with an increasing shift from RCC to structural tubes.
The Structural Tube market in India is expected to increase to 22MMT from
4MMT over CY21-30E.
APAT was the first domestic player to introduce Direct Forming Technology
(DFT) in India, an Italian technology used for tube manufacturing. With the
introduction of DFT, APAT will be able to manufacture tubes tailor-made to
client requirements, require less lead time, and be able to take small MOQs
even for non-standard sizes. Tubes manufactured with cut-to-length (as per
design) leads to lower wastages, thereby reducing overall cost.
APAT to lead the space by pioneering DFT in India
Sumant Kumar - Research Analyst
(Sumant.Kumar@motilaloswal.com)
Research Analyst: Yusuf Inamdar
(Yusuf.Inamdar@motilaloswal.com) |
Darshit Shah
(Darshit.Shah@MotilalOswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
APL Apollo Tubes
By using this technology, APAT reduced turnaround time due to reduced need of
fabrication work and improved working capital cycle due to lesser inventory.
The company is also able to manufacture large jumbo tubes, which is not
possible under the conventional methods.
As a testimony to increasing transition to structural tubes, the Delhi government
recently announced construction of seven hospital building at different locations
using 100% structural steel tubes (first of its kind), with APAT being the sole
supplier. The entire project is expected to be completed in a record time of five
months.
APAT best placed to benefit from a growing industry
Globally, consumption of heavy structural tubes is higher (30-40% of overall
steel tubes consumption), whereas for APAT the number is pegged ~6%. Going
forward, with higher adoption of structural tubes in Real Estate and
Infrastructure projects, share of structural tubes is expected to improve, leading
to improvement in EBITDA/MT and operating margins for companies.
India’s Structural Steel Tube industry is pegged at 4MMT, or ~4% of overall steel
consumption as compared to the global average of 7%. As per the management,
overall steel consumption in India is expected to clock 9% CAGR to 227MMT.
With the growing acceptance of structural tubes, the consumption share (as a
percentage of overall steel consumption) is expected to increase by 520bp to
10%, taking overall volumes of structural tubes to 22MMT (17% CAGR over
CY19-30E).
APAT currently dominates the domestic market with ~50% share. The
cumulative market share of the next five domestic players stands at just 38%. It
is best placed to benefit from the growing Structural Steel Tubes industry on the
back of: i) industry leading market share, ii) first mover advantage (installation
of DFT at plant locations), and iii) strong brand name.
On the back of strong demand outlook and faster turnaround time (WC days at
four in FY21), we expect APAT to record 18% CAGR growth over FY21-24E (to
2.7MMT).
Valuation and view
We expect strong volume growth and improved profitability on the back of: a)
increasing shift towards structural tubes (from RCC structures), b) a pan-India
presence, coupled with diverse product offerings, c) behemoth market share,
increasing the share of value-added products.
Several cost-control measures, kicking-in of operating leverage, and growing
share of VAP is expected to lead to improved margin and higher cash
generation.
We expect a revenue/EBITDA/PAT CAGR of 26%/26%/36% over FY21-24E. We
value the stock at 35x Sep’23E EPS. Our TP of INR1,035. We maintain our Buy
rating.
13 October 2021
2
 Motilal Oswal Financial Services
APL Apollo Tubes
Exhibit 1: One-year forward P/E (x)
P/E (x)
Min (x)
48
36
24
12
0
Avg (x)
+1SD
Max (x)
-1SD
Exhibit 2: One-year forward P/B (x)
P/B (x)
Min (x)
10.0
Avg (x)
+1SD
Max (x)
-1SD
40.0
25.9
6.4
16.2
6.0
36.4
9.3
5.2
8.8
7.5
5.0
2.5
0.0
1.1
0.8
3.1
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: Per sq. ft. cost analysis
(INR/sq. ft.)
Land cost
Structural cost
Finishing cost
Other expenses
Total
RCC
structures
1,000
1,500
1,000
500
4,000
Steel tube
structures
1,000
1,700
1,000
500
4,200
Exhibit 4: Global peer benchmarking
Revenue
(INR b)
SSAB
Maruichi
Zekelman
APL Apollo
68
106
185
85
EBITDA
margin
14%
17%
19%
8%
Revenue
share from
building
material and
Infra. (%)
40
40
20
6
Capacities
(in MMT)
1.1
1.4
2.8
2.6
Note: Assumed land and other expenses for comparison purpose.
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 5: Industry leader with ~50% market share
12%
6%
7%
50%
7%
9%
9%
APL Apollo
Player 1
Player 2
Player 3
Player 4
Player 5
Others
Exhibit 6: Consistent gain in market share
APAT's market share
50%
37%
27%
12%
27%
31%
40%
FY15
Source: Company, MOFSL
FY16
FY17
FY18
FY19
FY20
FY21
Source: Company, MOFSL
Exhibit 7: Lower penetration of structural tubes in India
Share of Structural tube as % of steel consumption
11%
9%
9%
8%
8%
7%
4%
Exhibit 8: Expect Structural Steel Tube industry to clock 17%
CAGR over CY19-30E
Steel market
Structural steel tube market
227
140
90
4
13
22
Global
Europe LATAM
Japan
Middle North
East America
India
Source: Company, MOFSL
Source: Company, MOFSL
13 October 2021
3
 Motilal Oswal Financial Services
APL Apollo Tubes
Exhibit 9: Global structural steel tube uses – segment-wise
break-up
Residential
19%
23%
21%
37%
2013
Infrastructure
17%
22%
22%
39%
2018
Commerical
Others
16%
22%
22%
Exhibit 10: Product-wise revenue composition – showcasing
increase in revenue share of VAP
Apollo Structures
Apollo Tricoat
10%
21%
7%
23%
Apollo Z
Others
8%
7%
22%
58%
16%
5%
20%
55%
18%
5%
24%
52%
FY22E
17%
4%
22%
54%
17%
4%
22%
55%
Apollo Galv
69%
40%
2021E
Source: Company, MOFSL
FY18
66%
FY19
FY20
FY21
FY23E
FY24E
Source: Company, MOFSL
Exhibit 11: Product-wise volume composition
Apollo Structures
10%
21%
Apollo Z
Apollo Galv
15%
4%
23%
Apollo Tricoat
16%
4%
22%
15%
4%
22%
Exhibit 12: Product-wise revenue composition – showcasing
increase in revenue share of VAP
Apollo Structures
15%
10%
Apollo Z
24%
6%
Apollo Galv
25%
6%
33%
36%
FY22E
Apollo Tricoat
26%
6%
32%
36%
FY23E
25%
6%
32%
36%
FY24E
7%
21%
6%
21%
4%
19%
13%
8%
35%
37%
39%
31%
39%
FY21
69%
72%
67%
62%
58%
58%
58%
48%
FY18
51%
43%
FY20
FY18
FY19
FY20
FY21
FY22E
FY23E
FY24E
FY19
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 13: Expect 26% revenue CAGR over FY21-24E
Revenue (INRb)
53.4
Blended realizations ('000 INR)
64.1
47.2
47.3
51.8
64.9
62.7
Exhibit 14: Expect 26% EBITDA CAGR over FY21-24E, with
stable margin
EBITDA (INRb)
7.0%
5.5%
8.0%
Margins
7.7%
7.6%
8.0%
6.2%
53.3
FY18
71.5
FY19
77.2
FY20
85.0
FY21
117.8
FY22E
149.1
FY23E
170.7
FY24E
3.7
FY18
3.9
FY19
4.8
FY20
6.8
FY21
9.0
FY22E
11.3
FY23E
13.6
FY24E
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 15: Expect 36% PAT CAGR over FY21-24E
Adj. PAT (INRm)
61%
51%
Growth YoY
57%
30%
4%
-6%
1,482
FY19
2,380
FY20
3,602
FY21
5,648
FY22E
7,366
FY23E
8,979
FY24E
22%
1,581
FY18
Source: Company, MOFSL
13 October 2021
4
 Motilal Oswal Financial Services
APL Apollo Tubes
Financials and valuations
Consolidated Income Statement
Y/E March
Total Income from Operations
Change (%)
RM Cost
Employees Cost
Other Expenses
Total Expenditure
As a percentage of Sales
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT bef. EO Exp.
EO Items
PBT after EO Exp.
Total Tax
Tax Rate (%)
Minority Interest
Reported PAT
Adjusted PAT
Change (%)
Margin (%)
FY15
31,383
25.7
26,807
412
2,348
29,567
94.2
1,816
5.8
220
1,596
664
45
977
0
977
339
34.7
0
638
638
7.6
2.0
FY16
42,136
34.3
35,546
629
3,145
39,319
93.3
2,817
6.7
341
2,476
695
103
1,883
-253
1,630
624
38.3
0
1,006
1,259
97.5
3.0
FY17
39,239
-6.9
32,324
754
2,832
35,909
91.5
3,330
8.5
509
2,821
720
60
2,160
0
2,160
639
29.6
0
1,521
1,521
20.8
3.9
FY18
53,348
36.0
45,483
862
3,292
49,637
93.0
3,710
7.0
534
3,176
813
80
2,443
0
2,443
862
35.3
0
1,581
1,581
4.0
3.0
FY19
71,523
34.1
63,077
1,079
3,439
67,595
94.5
3,928
5.5
643
3,286
1,134
117
2,269
0
2,269
787
34.7
0
1,482
1,482
-6.2
2.1
FY20
77,232
8.0
65,786
1,422
5,252
72,459
93.8
4,773
6.2
959
3,814
1,073
222
2,963
0
2,963
403
13.6
180
2,380
2,380
60.5
3.1
(INR m)
FY21 FY22E FY23E FY24E
84,998 1,17,790 1,49,087 1,70,675
10.1
38.6
26.6
14.5
71,648 98,426 1,25,233 1,43,367
1,296
1,489
1,938
2,219
5,266
8,833 10,583 11,514
78,210 1,08,748 1,37,754 1,57,100
92.0
92.3
92.4
92.0
6,787
9,042 11,333 13,576
8.0
7.7
7.6
8.0
1,028
1,115
1,342
1,480
5,759
7,926
9,990 12,096
661
458
300
300
359
365
447
512
5,458
7,833 10,138 12,308
0
0
0
0
5,458
7,833 10,138 12,308
1,381
1,975
2,551
3,097
25.3
25.2
25.2
25.2
475
211
221
232
3,602
5,648
7,366
8,979
3,602
5,648
7,366
8,979
51.3
56.8
30.4
21.9
4.2
4.8
4.9
5.3
Consolidated Balance Sheet
Y/E March
Equity Share Capital
Total Reserves
Net Worth
Minority Interest
Total Loans
Deferred Tax Liabilities
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Goodwill on Consolidation
Capital WIP
Total Investments
Current Investments
Curr. Assets, Loans, and Adv.
Inventory
Account Receivables
Cash and Bank Balance
Loans and Advances
Curr. Liability and Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Misc. Expenditure
Appl. of Funds
FY15
234
4,717
4,951
0
4,822
745
10,517
6,472
760
5,712
429
240
191
0
6,656
3,196
1,753
188
1,520
2,710
2,063
375
272
3,946
0
10,517
FY16
234
5,441
5,676
0
6,498
859
13,033
7,291
1,058
6,233
429
320
131
0
9,491
5,944
2,201
14
1,333
3,572
2,581
506
484
5,920
0
13,033
FY17
236
6,798
7,034
0
5,944
813
13,790
6,922
454
6,468
230
1,224
4
0
10,519
4,696
2,949
16
2,859
4,656
4,039
459
157
5,864
0
13,790
FY18
237
8,141
8,379
0
7,751
994
17,124
9,617
988
8,628
230
460
11
0
12,483
5,915
4,321
68
2,179
4,688
3,793
814
81
7,795
0
17,124
FY19
239
9,402
9,641
0
8,581
1,200
19,422
11,626
1,548
10,078
230
275
494
0
16,663
7,835
5,433
478
2,917
8,317
6,989
1,220
108
8,346
0
19,422
FY20
249
13,313
13,562
954
8,338
1,012
23,865
17,246
2,507
14,738
1,375
101
15
0
16,431
7,842
4,764
456
3,370
8,796
7,644
979
173
7,636
0
23,865
FY21
250
16,697
16,947
1,383
5,203
1,112
24,644
18,568
3,535
15,033
1,375
1,077
15
0
16,491
7,599
1,306
3,579
4,006
9,345
7,859
1,310
177
7,145
0
24,644
FY22E
552
22,976
23,528
0
2,203
1,112
26,842
20,554
4,650
15,904
2,796
1,340
15
0
19,276
10,428
2,582
715
5,552
12,488
10,428
1,816
245
6,788
0
26,842
FY23E
552
29,928
30,480
0
2,203
1,112
33,794
22,751
5,993
16,758
2,796
1,393
4,515
4,500
24,149
13,209
3,268
645
7,027
15,817
13,209
2,298
310
8,332
0
33,794
(INR m)
FY24E
552
38,424
38,976
0
403
1,112
40,490
24,991
7,473
17,518
2,796
1,404
4,515
4,500
32,308
15,064
3,741
5,458
8,044
18,050
15,064
2,631
355
14,258
0
40,490
13 October 2021
5
 Motilal Oswal Financial Services
APL Apollo Tubes
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
Cash EPS
BV/Share
DPS
Payout (%)
Valuation (x)
P/E
Cash P/E
P/BV
EV/Sales
EV/EBITDA
Dividend Yield (%)
FCF per share
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtor (Days)
Creditor (Days)
Leverage Ratio (x)
Current Ratio
Interest Cover Ratio
Net Debt/Equity
FY15
2.3
3.1
17.9
0.5
26.5
370.2
275.2
47.7
7.7
132.5
0.1
11.5
13.9
11.2
10.9
4.8
3.0
37
20
24
2.5
2.4
0.9
FY16
4.6
5.8
20.6
0.8
28.0
187.4
147.5
41.6
5.8
86.1
0.1
0.9
23.7
14.5
13.6
5.8
3.2
51
19
22
2.7
3.6
1.1
FY17
5.5
7.4
25.5
1.0
22.5
155.1
116.2
33.6
6.2
72.7
0.1
11.6
23.9
16.1
15.8
5.7
2.8
44
27
38
2.3
3.9
0.8
FY18
5.7
7.7
30.4
1.2
25.3
149.2
111.6
28.2
4.6
65.7
0.1
3.5
20.5
14.5
14.1
5.5
3.1
40
30
26
2.7
3.9
0.9
FY19
5.4
7.7
34.9
1.2
27.7
159.2
111.0
24.5
3.4
62.1
0.1
4.8
16.5
12.9
12.4
6.2
3.7
40
28
36
2.0
2.9
0.8
FY20
8.6
12.1
49.1
0.0
0.0
99.2
70.7
17.4
3.2
51.3
0.0
-5.4
20.5
17.4
15.9
4.5
3.2
37
23
36
1.9
3.6
0.6
FY21
13.0
16.8
61.4
0.0
0.0
65.5
51.0
13.9
2.8
35.2
0.0
24.2
23.6
20.8
19.9
4.6
3.4
33
6
34
1.8
8.7
0.1
FY22E
20.5
24.5
85.2
1.4
6.6
41.8
34.9
10.0
2.0
26.3
0.2
3.2
27.9
25.9
26.5
5.7
4.4
32
8
32
1.5
17.3
0.1
FY23E
26.7
31.6
110.4
1.5
5.6
32.0
27.1
7.7
1.6
20.6
0.2
17.8
27.3
26.7
28.7
6.6
4.4
32
8
32
1.5
33.3
-0.1
FY24E
32.5
37.9
141.2
1.8
5.4
26.3
22.6
6.1
1.3
16.7
0.2
25.8
25.9
26.2
32.1
6.8
4.2
32
8
32
1.8
40.3
-0.2
Consolidated Cash Flow Statement
Y/E March
OP/(Loss) before Tax
Depreciation
Interest and Finance Charges
Direct Taxes Paid
(Inc.)/Dec. in WC
CF from Operations
Others
CF from Operating incl. EO
(Inc.)/Dec. in FA
Free Cash Flow
(Pur.)/Sale of Investments
Others
CF from Investments
Issue of Shares
Inc./(Dec.) in Debt
Interest Paid
Dividend Paid
Others
CF from Fin. Activity
Inc./Dec. in Cash
Opening Balance
Closing Balance
FY15
977
220
650
-67
1,367
3,146
2
3,148
27
3,175
-15
-1,829
-1,817
0
-443
-664
-117
-19
-1,243
88
101
188
FY16
1,630
341
669
-432
-2,335
-127
240
113
149
261
-18
-1,227
-1,096
0
1,673
-695
-141
-28
809
-175
188
13
FY17
2,160
509
711
-629
330
3,082
72
3,154
61
3,215
2
-1,761
-1,697
106
-554
-725
-234
-47
-1,454
2
14
16
FY18
2,443
534
789
-602
-2,342
823
91
914
48
961
2
-1,703
-1,654
100
1,807
-772
-283
-59
792
52
16
68
FY19
2,269
0
0
-673
287
1,884
1,693
3,576
-2,261
1,316
-390
13
-2,639
56
830
-1,014
-400
0
-528
410
68
478
FY20
2,963
959
851
-403
725
5,096
0
5,096
-6,591
-1,495
479
1,763
-4,349
10
-244
-1,073
0
538
-768
-22
478
456
FY21
5,458
1,028
302
-1,381
3,577
8,983
0
8,983
-2,298
6,685
0
-4,171
-6,468
1
-3,135
-661
0
4,403
609
3,123
456
3,579
FY22E FY23E
7,833 10,138 12,308
1,115 1,342 1,480
93
-147
-212
-1,975 -2,551 -3,097
-2,507 -1,614 -1,113
4,560 7,169 9,366
0
0
0
4,560 7,169 9,366
-3,671 -2,250 -2,250
889 4,919 7,116
0 -4,500
0
365
447
512
-3,306 -6,303 -1,738
1,306
0
0
-3,000
0 -1,800
-458
-300
-300
-373
-414
-483
-1,594
-221
-232
-4,118
-935 -2,815
-2,865
-69 4,813
3,579
715
645
715
645 5,458
(INR
m)
FY24E
13 October 2021
6
 Motilal Oswal Financial Services
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Explanation of Investment Rating
Investment Rating
BUY
SELL
NEUTRAL
UNDER REVIEW
NOT RATED
Expected return (over 12-month)
>=15%
< - 10%
< - 10 % to 15%
Rating may undergo a change
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within following 30
days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations,
is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial products. MOFSL is a subsidiary
company of Passionate Investment Management Pvt. Ltd.. (PIMPL). MOFSL is a listed public company, the details in respect of which are available on www.motilaloswal.com. MOFSL
(erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of
India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its
stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member
of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance
products.
Details
of
associate
entities
of
Motilal
Oswal
Financial
Services
Limited
are
available
on
the
website
at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
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the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a
market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of
interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific recommendations made by the
analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an inherent conflict of interest in
some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report should be aware
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Research Analyst views on Subject Company may vary based on Fundamental research and
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professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these securities, products and services in any jurisdiction where their offer
or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under applicable state
laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act" and together with the 1934
Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any brokerage and investment services provided by
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defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as "major institutional investors"). This document must not be acted on or relied on
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only with major institutional investors. In reliance on the exemption from registration provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and
interpretations thereof by the U.S. Securities and Exchange Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a
chaperoning agreement with a U.S. registered broker-dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be
executed within the provisions of this chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S. registered
broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public appearances and trading
securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets services
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Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
-
financial interest in the subject company
-
actual/beneficial ownership of 1% or more securities in the subject company
-
received compensation/other benefits from the subject company in the past 12 months
13 October 2021
7
 Motilal Oswal Financial Services
APL Apollo Tubes
-
other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific
recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there
might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
-
acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
-
be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies)
discussed herein or act as an advisor or lender/borrower to such company(ies)
-
received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider
demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not
considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research
analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
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Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and
the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform
or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of information that is
already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or may not subscribe to all the
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costs, damages,
expenses that may be suffered by the person accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263; Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad(West), Mumbai-
400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst: INH000000412. AMFI:
ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company Ltd. (MOAMC): PMS (Registration
No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.:
INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond,
NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. which is a group company of MOFSL. Private Equity is offered
through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL. Research & Advisory services is backed by proper research. Please read the Risk
Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no assurance or guarantee of the returns. Investment in securities market is subject to market risk,
read all the related documents carefully before investing. Details of Compliance Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National Company Law
Tribunal, Mumbai Bench.
13 October 2021
8