APL Apollo Tubes Ltd.
Infrastructure · NSE
52-week range
₹1,487 – ₹2,301
From 52w high
-15.3%
RSI (14)
46.5
vs SMA 50 / 200
↓ 50 · ↑ 200
APL Apollo Tubes (₹1,948.60) is an NSE-listed structural steel tubes manufacturer that reported Q4FY26 net profit up 59% YoY and full-year earnings CAGR of 20.8% over five years, yet the stock has pulled back 10.38% over the past three months and sits 3.67% below its 50-DMA. The company carries a debt-to-equity ratio of 9.40 — the most salient financial structure risk — while ROE of 25.31% ranks first among six tracked infrastructure peers.
- ✓Five-year earnings CAGR of 20.8% and revenue CAGR of 13.6%, with Q4FY26 net profit reported up 59% YoY to ₹1,203 crore — the most recent quarter showing acceleration rather than deceleration.
- ✓ROE of 25.31% ranks 1st among six tracked infrastructure sector peers (vs L&T at 15.54% and CG Power at 19.56%), and the consistency score of 87 reflects ROE above 15% in 4 of the available years.
- ✓Debt trend is categorised as falling, and FCF was positive in 3 of the tracked years; EBITDA/tonne guidance of ₹5,500 was reiterated for FY27 alongside volume growth targets, per Q4 management commentary.
- ✓Forward PE of 30.3x represents a meaningful compression versus the trailing PE of 45.1x if FY27 earnings guidance is met, and the stock trades at a discount to sector peers ABB (95.2x), CG Power (113.8x), and BEL (53.7x) on trailing PE.
- ✗Debt-to-equity of 9.40 is substantially above what is typical for non-financial manufacturing businesses and introduces solvency sensitivity if operating cash flows contract; even with a falling debt trend, the absolute level warrants close monitoring.
- ✗Net profit margin of 5.21% is thin; at a trailing PE of 45.1x the valuation leaves limited room for margin slippage — a 1 pp decline in margin would represent roughly a 20% fall in absolute profit at current revenue levels.
- ✗Price is 10.38% below its 3-month-ago level and 15.33% below its 52-week high, with the stock trading below its 50-DMA (₹2,022.86) while RSI of 46.45 is neutral — indicating a period of consolidation or distribution following the earnings release.
- ✗Quality score of 46 out of 100 ranks only 3rd among six sector peers, with BEL (57) ranking higher; despite superior ROE, the composite score is likely compressed by the elevated leverage ratio.
- ·Q4FY26 results (reported early May 2026) showed net profit up 59% YoY to ₹1,203 crore, record EBITDA, and a ₹8.50 dividend declaration, alongside management reaffirming FY27 volume and EBITDA/tonne guidance — five news items across the week were all classified positive.
- ·Despite the strong quarterly print, the stock declined approximately 10% over the three months ending 11 May 2026, with the current price (₹1,948.60) sitting between the 200-DMA support cluster (₹1,847–1,872) and 50-DMA resistance (₹2,022.86).
- ·Mean analyst rating of 1.53 across 19 analysts (1–5 scale, lower = more constructive) reflects a coverage base that skews toward the constructive end of the scale numerically, though no individual analyst action is cited in the available data.
- ?Does the falling debt trend reflect structural deleveraging or cyclical working-capital release, and at what D/E level does the company’s interest coverage become strained if EBITDA contracts?
- ?The 5-year ROE persistence (4 of available years above 15%) coincides with a period of strong infrastructure spending in India — to what extent is the ROE driven by sector tailwinds versus company-specific operational advantages?
- ?With a trailing PE of 45x compressing to a forward PE of 30x if guidance is met, what assumptions about volume growth and EBITDA/tonne are embedded in the current price, and how sensitive is that valuation to a 10–15% volume miss?
- ?The 3-month price decline of 10% occurred concurrent with strongly positive earnings news — what factors (broader market, sector rotation, or stock-specific) account for this divergence, and has institutional ownership changed materially?
PE
45.1
Forward PE
30.3
ROE
+25.3%
Profit margin
+5.2%
D/E
9.40
Dividend yield
+0.3%
Quality score
46/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
3/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 11 May 2026.