Strong Momentum Drives Stock to New Heights
Today’s surge to Rs.2177 represents a notable 2.00% gain on the day, outpacing the sector’s performance by 0.79%. The stock has been on a consistent upward trajectory, registering gains over the last four consecutive trading sessions and delivering a cumulative return of 6.43% during this period. This sustained rally has propelled APL Apollo Tubes well above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling strong technical momentum.
In contrast, the broader Sensex opened lower at 83,252.06, down 487.07 points (-0.58%), and was trading marginally down by 0.11% at 83,643.94 at the time of reporting. The Sensex remains approximately 3.01% below its own 52-week high of 86,159.02, with the index trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating a mixed technical picture for the broader market.
Impressive One-Year Performance Outshines Benchmark
APL Apollo Tubes Ltd’s one-year performance stands out distinctly, with a remarkable 51.65% return compared to the Sensex’s modest 6.38% gain over the same period. The stock’s 52-week low was Rs.1273.3, highlighting the significant appreciation in value over the past year. This performance places the company among the top performers in the Iron & Steel Products sector and the broader mid-cap universe.
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Fundamental Strength Underpinning Market Performance
APL Apollo Tubes Ltd’s market strength is supported by solid fundamentals. The company boasts a strong long-term Return on Capital Employed (ROCE) averaging 27.96%, reflecting efficient capital utilisation. Net sales have grown at an annualised rate of 22.70%, while operating profit has expanded at 24.59%, indicating healthy operational growth.
Debt servicing capability remains robust, with a low Debt to EBITDA ratio of 0.35 times, underscoring prudent financial management. The company’s net profit growth of 42.9% in the December 2025 quarter further reinforces its positive earnings trajectory. Notably, APL Apollo Tubes has reported positive results for four consecutive quarters, with the highest half-year ROCE recorded at 27.53%.
Quarterly net sales peaked at Rs.5,815.13 crores, while PBDIT reached a record Rs.471.79 crores, marking the company’s strongest quarterly performance to date. Return on Equity (ROE) stands at a healthy 22.8%, with a Price to Book Value ratio of 12.9, indicating a fair valuation relative to its earnings and asset base.
Valuation and Institutional Confidence
The stock currently trades at a discount compared to its peers’ average historical valuations, offering relative value within the sector. The company’s Price/Earnings to Growth (PEG) ratio of 0.7 highlights an attractive valuation in relation to its earnings growth, which has surged by 80% over the past year.
Institutional investors hold a significant 53.03% stake in the company, reflecting strong confidence from entities with extensive analytical resources. This level of institutional ownership often correlates with enhanced market stability and informed trading activity.
MarketMojo Ratings and Rankings
APL Apollo Tubes Ltd is rated as a Strong Buy by MarketsMojo, with a Mojo Score of 88.0, upgraded from a previous Buy rating on 13 October 2025. The company holds a Market Cap Grade of 2, reflecting its mid-cap status. It ranks first among all mid-cap stocks and across the entire market universe of over 4,000 stocks, placing it in the highest 1% of companies rated by MarketsMojo.
Its market-beating performance extends beyond the last year, with the stock outperforming the BSE500 index over the last three years, one year, and three months, demonstrating consistent strength across multiple time horizons.
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Technical and Market Context
The stock’s current trading above all major moving averages signals a strong bullish trend. This technical strength is particularly notable given the broader market’s subdued performance, with the Sensex trading below its 50-day moving average. The divergence between APL Apollo Tubes and the benchmark index highlights the stock’s relative resilience and sector-specific strength.
With a 52-week low of Rs.1273.3, the stock has nearly doubled in value over the past year, reflecting both fundamental improvements and positive market sentiment towards the Iron & Steel Products sector. The company’s ability to sustain growth in net sales, profitability, and capital efficiency has been central to this performance.
Summary of Key Metrics
To summarise, APL Apollo Tubes Ltd’s key performance indicators include:
- New 52-week high price: Rs.2177
- One-year return: 51.65%
- Net sales growth (annualised): 22.70%
- Operating profit growth (annualised): 24.59%
- Net profit growth (latest quarter): 42.9%
- ROCE (average): 27.96%
- Debt to EBITDA ratio: 0.35 times
- Institutional holdings: 53.03%
- Mojo Score: 88.0 (Strong Buy)
These metrics collectively illustrate a company with strong financial health, operational efficiency, and market recognition.
Conclusion
APL Apollo Tubes Ltd’s ascent to a new 52-week high of Rs.2177 is a testament to its sustained growth, solid fundamentals, and technical strength. The stock’s outperformance relative to the broader market and sector peers highlights its position as a leading mid-cap player in the Iron & Steel Products industry. With consistent quarterly results and strong institutional backing, the company continues to demonstrate resilience and robust market momentum.
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