APL Apollo Tubes Ltd (APLAPOLLO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Usha Martin

APL Apollo Tubes

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Surya Roshni

Mah. Seamless

Shyam Metalics

Why is APL Apollo Tubes Ltd ?

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 27.01%

Healthy long term growth as Net Sales has grown by an annual rate of 21.63% and Operating profit at 22.22%
Company has a Debt to Equity ratio (avg) of 0.10 times

The company has declared Positive results for the last 5 consecutive quarters

ROCE(HY) Highest at 29.04%
CASH AND CASH EQUIVALENTS(HY) Highest at Rs 886.23 cr
NET SALES(Q) Highest at Rs 6,269.16 cr

With ROE of 22.7, it has a Attractive valuation with a 10 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 18.89%, its profits have risen by 58.9% ; the PEG ratio of the company is 0.8

High Institutional Holdings at 53.56%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.53% over the previous quarter.

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to APL Apollo Tubes should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is APL Apollo Tubes for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

APL Apollo Tubes

18.89%

0.70

27.01%

Sensex

-3.33%

-0.25

13.43%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.63%

EBIT Growth (5y)

22.22%

EBIT to Interest (avg)

12.19

Debt to EBITDA (avg)

0.73

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

4.08

Tax Ratio

22.75%

Dividend Payout Ratio

21.08%

Pledged Shares

Institutional Holding

53.56%

ROCE (avg)

27.49%

ROE (avg)

21.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.05

EV to EBIT

33.64

EV to EBITDA

29.32

EV to Capital Employed

10.77

EV to Sales

2.34

PEG Ratio

0.75

Dividend Yield

0.30%

ROCE (Latest)

32.01%

ROE (Latest)

22.71%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

ROCE(HY)

Highest at 29.04%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 886.23 cr

NET SALES(Q)

Highest at Rs 6,269.16 cr

PBDIT(Q)

Highest at Rs 511.03 cr.

PBT LESS OI(Q)

Highest at Rs 420.12 cr.

PAT(Q)

Highest at Rs 354.35 cr.

EPS(Q)

Highest at Rs 12.76

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 62.54 times

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Here's what is working for APL Apollo Tubes

Net Sales - Quarterly

Highest at Rs 6,269.16 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 511.03 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 420.12 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 420.12 cr has Grown at 29.74%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 354.35 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 354.35 cr has Grown at 20.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 12.76

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 886.23 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for APL Apollo Tubes

Debtors Turnover Ratio- Half Yearly

Lowest at 62.54 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 36.49 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income