Subdued volumes due to channel destocking

30 Jan 2024
5 Min read 
  • APL Apollo Tubes reported muted sales volume in 3QFY24 due to channel destocking.
  •  EBITDA grew 2% YoY, driven by an improved value-added product mix.
  •  FY24/FY26 earnings estimates are largely maintained, but FY25 estimates are reduced by 12%.
  •  The stock is valued at 32x Dec25E EPS, with a target price of INR1,770.
  •  The company expects to increase exports and grow revenue by 20-25% p.a.
  •  New facilities and growth drivers in railways, airports, and solar are expected to drive volume growth and margin expansion.
  •  The company aims to be debt-free by the end of FY25.
  •  Reiterate BUY rating.
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