APL Apollo Tubes Stock Down 9% After Q1 Result Announcement: Time To Buy The Dip Or Sell? Check Target Price

APL Apollo Tubes Share Price Today: Shares of APL Apollo Tubes plunged nearly 9% on Friday, despite reporting a 22.7% year-on-year increase in its June quarter profit a day ago. The structural steel tubes producer reported a net consolidated profit of Rs 237.17 crore in the June quarter against a net profit of Rs 237.17 crore in the year-ago period.

APL Apollo Tubes shares closed 8.71% lower at Rs 1541.30 per share on BSE on Friday. The stock had touched an intraday low mark of Rs 1528 per share, whereas the stock surged to its intraday high mark of Rs 1685.95 per share.

APL Apollo Tubes Q1 Results

APL Apollo Tubes reported a 22% annual increase in its net profit to Rs 237.17 crore in theJune quarter. The company's consolidated net revenue from operations increased to Rs 5,169.77 crore in the June quarter from Rs 4,974.30 crore in the year-ago period. The company's earnings per share (EPS) stood 8.55.

APL Apollo Tubes' sales volume increased 10% annually, but decreased 7% sequentially to Rs 794k ton. Whereas, EBITDA soared by 23% annually and by 10% sequentially. Company's value-added sales mix stood at 61%.

APL Apollo Tubes Q1 Review

The Noida-based company reported lower than expected volume growth during the quarter under review, but its EBITDA per ton improved anjnually but declined sequentially. The company reported net cash balance of Rs 2.1 billion at the end of the June quarter.

"Revival of infrastructure capex by GoI, ramp-up of the Dubai and Raipur plants, as well as deeper penetration into new geographies with plants in Kolkata, Bhuj, and Gorakhpur would aid volumes 2HFY26 onwards. Higher EBITDA levels resulting from operating leverage, employee/ power cost reduction, and greater contribution of value-added products from the ramp up of Raipur and Dubai plants would improve EBITDA per ton," noted the Antique Brokerage in its report.

APL Apollo Tubes Share Price Recommendation

The brokerage maintained a 'Buy' rating for the stock with a target price of Rs 1,897 per gram. "We like the company's aggressive volume expansion plan and product mix improvement initiatives. We roll over our earnings estimate to 1HFY28E (from FY27E earlier) and maintain BUY rating with a TP of INR 1,897 (INR 1,826 earlier) at a target P/E multiple of 30x 1HFY28E earnings," added the brokerage in its report.

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