20 Oct , 2021 By : Kanchan Joshi
APL Apollo Tubes (APAT) is one of India’s leading branded steel products manufacturers. Shares of APL Apollo have given multibagger return this year so far as the scrip is up over 101% in 2021 (year-to-date or YTD) so far, whereas it has surged over 210% in a year's period.
Headquartered at Delhi NCR, the cpmpany runs 10 manufacturing facilities churning out over 1,500 varieties of pipes and tubes to serve industry applications like urban infrastructures, housing, irrigation, solarplants, greenhouses and engineering.
Sharing it as its top stock pick of the week, brokerage and research firm Axis Securities has a Buy rating on the stock and sees further upside with the target price of Rs960 per share. Though the ideal investment horizon for such ideas remain 6-9 months, the brokerage said its picks may provide some profit-making opportunities even to short-term investors.
"The current volume expansion plan with a consistent focus on expanding its market share and increase contribution from the value-added products is expected to augur well from the medium to long-term earnings perspective," Axis Securities said in a note.
The management has indicated that by FY25 they will increase their overall capacity to 4 million tonnes from the current 2.6 million tonnes a 57% increase given that there is a large growth opportunity for structural steel tubes in India driven by product innovation and cost savings, the brokerage note highlighted.
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