Apollo Pipes Ltd Valuation Shifts Signal Price Attractiveness Concerns

Valuation Multiples Signal Elevated Pricing

As of 9 Feb 2026, Apollo Pipes trades at ₹315.10, up sharply by 18.77% on the day, with a 52-week range between ₹252.80 and ₹495.00. However, this price appreciation has not been accompanied by commensurate improvements in underlying fundamentals, leading to stretched valuation metrics. The company’s P/E ratio currently stands at 42.51, a significant premium compared to its historical averages and peer group benchmarks.

In comparison, industry peers such as Finolex Industries and EPL Ltd maintain more moderate valuations, with P/E ratios of 21.21 and 16.38 respectively, both classified as fair or attractive. Even within the plastic products industrial sector, Apollo Pipes’ P/E is eclipsed only by a handful of very expensive stocks like Prince Pipes, which trades at an extraordinary 124.97 P/E.

The price-to-book value ratio of Apollo Pipes is 1.69, signalling a premium over book value but still moderate relative to some peers like Shaily Engineering, which is considered very expensive with a P/BV well above 2.0. Nonetheless, the shift from a previously fair valuation grade to expensive indicates that investors are paying more for each unit of net asset value than before.

Profitability and Returns Lag Behind Valuation

Despite the elevated multiples, Apollo Pipes’ return on capital employed (ROCE) and return on equity (ROE) remain subdued at 6.27% and 3.96% respectively. These figures are modest within the sector and do not justify the premium valuation. The company’s dividend yield is also minimal at 0.23%, offering limited income support to shareholders.

Enterprise value to EBITDA (EV/EBITDA) ratio stands at 14.43, which is higher than some attractive peers such as EPL Ltd (8.18) and Styrenix Perfor (11.65), but lower than very expensive companies like Safari Industries (38.97). This intermediate positioning further underscores the mixed signals investors face when assessing Apollo Pipes’ price attractiveness.

Stock Performance Versus Market Benchmarks

Over the short term, Apollo Pipes has outperformed the Sensex, delivering a 17.60% return over the past week compared to the benchmark’s 1.59%. The one-month and year-to-date returns are also positive at 6.45% and 7.12%, respectively, while the Sensex has declined over these periods. However, the longer-term performance paints a less favourable picture. Over one year, Apollo Pipes has declined by 24.69%, significantly underperforming the Sensex’s 7.07% gain. Over three years, the stock has lost 37.19%, while the Sensex has appreciated by 38.13%.

Even over five and ten-year horizons, Apollo Pipes’ returns of 35.86% and 768.83% lag behind the Sensex’s 64.75% and 239.52%, respectively, when adjusted for the scale of gains. This disparity highlights the stock’s volatility and inconsistent performance relative to the broader market.

Mojo Score and Grade Reflect Elevated Risk

MarketsMOJO’s proprietary scoring system assigns Apollo Pipes a Mojo Score of 28.0, with a recent downgrade from Sell to Strong Sell on 1 Feb 2026. This reflects a deteriorating outlook driven primarily by valuation concerns and weak quality metrics. The market capitalisation grade remains low at 3, indicating limited scale and liquidity compared to larger peers.

The downgrade signals caution for investors, as the stock’s elevated multiples are not supported by robust earnings growth or return ratios. The PEG ratio is reported as zero, suggesting either negligible earnings growth or data unavailability, which further complicates valuation assessment.

Peer Comparison Highlights Valuation Disparities

Within the plastic products industrial sector, Apollo Pipes’ valuation stands out as expensive but not extreme. Peers such as Safari Industries and Shaily Engineering are classified as very expensive with P/E ratios exceeding 60, while companies like Time Technoplast and EPL Ltd offer more attractive valuations with P/E ratios in the low twenties or below.

EV/EBITDA multiples also vary widely, with Apollo Pipes at 14.43 compared to Safari Industries’ 38.97 and EPL Ltd’s 8.18. This suggests that while Apollo Pipes is priced richly, it is not the most overvalued in the sector. However, its middling profitability and weak returns do not justify the premium relative to more attractively valued peers.

Implications for Investors

Investors considering Apollo Pipes must weigh the recent price gains against stretched valuation metrics and modest fundamental performance. The stock’s strong short-term momentum contrasts with its longer-term underperformance and deteriorating quality scores. This divergence raises questions about sustainability and risk.

Given the current valuation grade shift from fair to expensive, the risk of a correction or consolidation is elevated. Investors seeking exposure to the plastic products industrial sector may find more compelling opportunities among peers with stronger returns and more reasonable valuations.

Conclusion: Valuation Concerns Temper Optimism

Apollo Pipes Ltd’s recent price rally has pushed its valuation multiples into expensive territory, raising concerns about price attractiveness and risk. Despite short-term outperformance versus the Sensex, the company’s weak returns on capital and modest dividend yield do not support the premium valuation. The downgrade to a Strong Sell Mojo Grade underscores the caution warranted by investors.

Comparative analysis within the sector reveals that while Apollo Pipes is not the most expensive stock, its middling fundamentals and stretched multiples make it less appealing than several peers with more attractive valuations and stronger profitability. Investors should carefully consider these factors before increasing exposure and may benefit from exploring alternative opportunities within the plastic products industrial space.

Unlock special upgrade rates for a limited period. Start Saving Now →