APL Apollo Tubes Ltd.
NSE: APLAPOLLOAPL Apollo Tubes Ltd.: A 30-second snapshot
APL Apollo Tubes (Rs 1,831.10) is a structural steel tubes manufacturer reporting a 13.6% five-year revenue CAGR and 20.8% earnings CAGR with ROE of 25.31%, but carrying a debt-to-equity ratio of 9.40 that is markedly above typical manufacturing norms. The stock trades below both its 50-DMA (Rs 1,951.27) and 200-DMA (Rs 1,870.05), having declined 16.6% over the past three months despite a reported 20.9% YoY profit increase in Q4FY26. A trailing PE of 41.2x contrasts with a forward PE of 27.8x, reflecting expectations of substantial earnings growth ahead.
P/E
41.2
Forward P/E
27.8
ROE
+25.3%
Debt / Equity
9.40
Profit Margin
+5.2%
Div. Yield
+0.3%
5Y ROE > 15%
4/5
5Y FCF > 0
3/5
Quality
60/100
News
4 headlines · 4 positive · 0 negative
APL Apollo Tubes Q4FY26: Profit Up 20.9%; EBITDA/Ton ₹5,500 Sustainable, FY27 Guidance Intact - scanx.trade
scanx.trade
APL Apollo Tubes posts PAT of Rs 354.35 crore in Q4 - Business Standard
Business Standard
APLAPOLLO: Strong Q4 results with high margins and cash flow; FY27 guidance remains robust - TradingView
TradingView
APL Apollo Consolidated March 2026 Net Sales at Rs 6,269.16 crore, up 13.81% Y-o-Y - Moneycontrol.com
Moneycontrol.com
Recent context
- ·Q4FY26 results (May 2026): consolidated net sales of Rs 6,269 crore (+13.8% YoY), PAT of Rs 354 crore (+20.9% YoY), with management guiding EBITDA/ton of Rs 5,500 as sustainable and FY27 volume/margin guidance described as intact across multiple coverage sources.
- ·The stock declined approximately 16.6% over three months and is effectively flat over one year (-0.04%) despite the positive quarterly results, with price sitting near identified support levels at Rs 1,830-1,821.
- ·Analyst consensus rating data is unavailable for this run; 19 analysts are tracked in the system but no aggregated rating score was returned, limiting visibility into current sell-side positioning.
Strengths
- +Five-year earnings CAGR of 20.8% and revenue CAGR of 13.6% demonstrate consistent top- and bottom-line expansion over the medium term.
- +ROE of 25.31% ranks 3rd of 6 infrastructure sector peers tracked, and the debt trend is classified as falling — suggesting leverage is being actively managed down.
- +Fundamental persistence score of 87/100: ROE above 15% in 4 of available years and positive free cash flow in 3 of available years, indicating relatively consistent quality delivery.
- +Forward PE of 27.8x represents a meaningful compression versus the trailing PE of 41.2x, implying consensus earnings-growth expectations are substantial for FY27.
Weaknesses
- −Debt-to-equity of 9.40 is exceptionally elevated for a capital-intensive manufacturing business; even with a falling trend, this level amplifies downside risk if revenue or margins deteriorate.
- −Net profit margin of 5.21% is thin and leaves limited operating buffer — the combination of high leverage and low margins means the business has narrow tolerance for execution shortfalls.
- −Price is below both the 50-DMA (Rs 1,951.27) and 200-DMA (Rs 1,870.05), with a 20.4% drawdown from the 52-week high and a 16.6% decline over the past three months.
- −Quality score of 46 ranks 4th of 6 sector peers, trailing CUMMINSIND (69), BEL (49), and ABB (47), reflecting structural concerns likely tied to the balance-sheet profile.
Open questions
- ?Does the D/E of 9.40, even on a falling trend, represent a structural feature of the business model (working capital intensity, project financing) or a legacy of aggressive capacity expansion that has yet to normalize?
- ?If EBITDA/ton guidance of Rs 5,500 holds for FY27, what level of volume growth would be needed to justify the current forward PE of 27.8x relative to sector peers trading at 34-116x?
- ?How sensitive is the 5.21% profit margin to raw material (steel HRC) price cycles — and what has the historical margin range been across prior commodity up- and down-cycles?
- ?What explains the divergence between strong reported Q4 results and the 16.6% price decline over the same quarter — and is there evidence of institutional positioning changes or sector rotation that might contextualize this gap?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| APLAPOLLO | APL Apollo Tubes Ltd.You're viewing | 41.2 | +25.3% | 46 |
| Industry avg | across 5 peers | 72.4 | +23.4% | 47 |
| CUMMINSIND | Cummins India Ltd. | 66.6 | +29.5% | 69 |
| BEL | Bharat Electronics Ltd. | 49.1 | +27.6% | 49 |
| ABB | ABB India Ltd. | 95.9 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 116.0 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 34.3 | +16.9% | 24 |
Technical state
Current price
₹1,831.10
SMA 50
₹1,951.27
SMA 200
₹1,870.05
RSI (14)
36.4 (neutral)
From 52w high
-20.4%
1Y return
-0.0%
3M return
-16.6%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity ratio of 9.40 is exceptionally elevated for a manufacturing company. Even with a falling debt trend, this level creates meaningful solvency sensitivity to any sustained revenue or margin deterioration — a thin 5.21% profit margin leaves limited cushion.
- mediumPrice (Rs 1,831.10) is below both the 50-DMA (Rs 1,951.27, -6.2%) and the 200-DMA (Rs 1,870.05, -2.1%), with a 3-month decline of 16.6% and RSI of 36.43. The stock is 20.4% below its 52-week high.
- mediumNet profit margin of 5.21% is narrow relative to a trailing PE of 41.2x. The valuation embeds continued execution; any compression in EBITDA/ton or volume shortfall would pressure earnings materially.
- lowAnalyst consensus rating is unavailable despite 19 analysts tracked. One-year price change data is null for all 5 sector peers, limiting reliability of relative-performance rankings. News sample covers only 4 items.
Cross-section contradictions
- Q4FY26 net profit reported up 20.9% YoY, EBITDA/ton guided at Rs 5,500, FY27 guidance described as intact, and all 4 recent news items carry positive sentiment — yet the stock has declined 16.6% over 3 months and is flat (-0.04%) over 1 year, diverging from the results narrative.
- ROE of 25.31% ranks 3rd of 6 sector peers and the 5-year earnings CAGR is 20.8%, yet the composite quality score of 46 ranks 4th of 6 — the D/E of 9.40 likely suppresses the composite score despite strong profitability metrics.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days