APL Apollo Tubes delivered a strong performance in Q4 FY24, reporting a significant 72 percent jump in net profit to ₹293 crore compared to ₹170.4 crore in the same quarter last year. The surge in profitability was driven by a robust operating performance and higher volumes across its product categories.
Revenue for the quarter grew 15.6 percent year-on-year to ₹5,509 crore from ₹4,765.7 crore in Q4 FY23. EBITDA came in at ₹413.5 crore, a 47.5 percent increase over ₹280.3 crore last year. This translated to an EBITDA margin of 7.5 percent, expanding from 5.9 percent, indicating improved operational efficiency and better product mix realization.
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The company’s stock is currently trading at ₹1,656 with a market cap of ₹45,955 crore. While the stock trades at a premium P/E of 72.5—well above the industry average of 16.9—APL Apollo’s long-term growth profile and consistent earnings justify the valuation for many investors. Its return on equity stands at 22 percent and return on capital employed at 25.2 percent, reflecting high capital efficiency.
APL Apollo has maintained strong financial health with a low debt-to-equity ratio of 0.27 and an Altman Z score of 14.3, indicating a robust balance sheet. Despite the trailing twelve-month profit decline of 17 percent, the company has delivered a profit CAGR of 26 percent and sales CAGR of nearly 29 percent over the last three years.
Free cash flow for FY24 stood at ₹450 crore, and the three-year cumulative FCF is ₹363 crore, showing solid cash generation despite continuous growth investments. The stock’s historical performance remains impressive, with a 67 percent CAGR over the last five years and 43 percent over the last decade.
Promoter holding stands at 28.3 percent, while the remaining shares are held by FIIs, DIIs, and the public. With strong fundamentals, consistent execution, and sectoral tailwinds in infrastructure and real estate, APL Apollo continues to position itself as a leader in structural steel tubes.
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Analyst sentiment is overwhelmingly bullish. Out of 16 analysts tracking the stock, 75 percent have a ‘Buy’ rating, 6 percent suggest ‘Outperform’, and only 13 percent have issued a ‘Sell’ rating, citing valuation concerns. The company’s long-term outlook remains strong, backed by its dominant market position and aggressive capacity expansion.
Disclaimer
This article is for educational and informational purposes only. We are not SEBI-registered investment advisors; none of this content should be considered financial advice. Please consult a certified financial planner or advisor before making any investment decisions.
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