APL Apollo Share Price | Structural Steel Tube Maker’s Stock Hits Record High, Making Long-term Investors Millionaires
Shares of APL Apollo Tubes, the leading structural steel tube maker, reached a record high two days ago, turning long-term investors into millionaires. Over the past 10 months, the company’s stock has surged by 82 percent, and last week it hit its annual high.
Potential for Further Growth: Sharekhan Expert Predicts 17 Percent Rise in APL Apollo Shares
Today, there is strong buying activity in APL Apollo Tubes’ stock, and Sharekhan experts believe that the shares could rise by an additional 17 percent from the current price level. As of Monday, September 11, 2023, the shares are trading at Rs 1,731.75 with a 0.89 percent increase.
Impressive Returns Over the Years: Shares Surge by 11334 Percent in 10 Years
Investors who put in 88 thousand rupees in APL Apollo Tubes’ shares 10 years ago have seen their investment grow by a staggering 11334 percent. The shares, which traded at Rs.15 on September 13, 2013, are now valued at Rs 1731. In just 10 months, the stock has surged by 82 percent, reaching Rs 1806.20.
APL Apollo Tubes: India’s Largest Structural Steel Tubing Company
APL Apollo Tubes is renowned as India’s largest structural steel tubing company. Its products are widely used in government projects, infrastructure development, and hospitals. The company aims to increase structural steel tubing consumption to 5 metric tons by FY 2025 and 10 metric tons by FY 2030, taking advantage of the growing demand for such products.
Promising Growth Prospects: Structural Steel Tubing Consumption to Rise by 16 Metric Tons by FY 2030
By FY 2030, APL Apollo Tubes could witness a significant increase in structural steel tubing consumption, with estimates suggesting a rise by 16 metric tons. This would account for 8 percent of India’s total steel consumption, up from the current 6 percent. The company’s focus is on expanding its market share and capitalizing on the opportunities presented by the growing demand for structural steel tubes.
Positive Outlook: Sharekhan Predicts 27 Percent CAGR for Structural Steel Tubing Volume Growth
Experts at Sharekhan brokerage firm forecast a compound annual growth rate (CAGR) of 27 percent for the volume of structural steel tubing during the financial years 2023-2026. They also believe that APL Apollo Tubes’ value-added products could increase from the current 57 percent to 70 percent by 2025. The company’s value-added products have a higher margin of Rs 6000-8000 per tonne, compared to the current margin of Rs 4500 per tonne.
Positive Financial Outlook: APL Apollo Tubes’ EBITDA Margin Expected to Reach Rs 6017 per Tonne
With a projected growth of 34 percent by FY 2026, APL Apollo Tubes’ EBITDA margin is expected to reach Rs 6017 per tonne. Furthermore, the company’s net profit is estimated to grow at a CAGR of 45 percent during FY 2023-2026. These positive financial indicators have led a leading brokerage firm to recommend buying shares of APL Apollo Tubes at a price of Rs.2000 lakhs.
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