Apollo Pipes’ Share Price Surges To February 2018 High
Truck driver delivers PVC pipe to a residential housing lot under construction. (Photographer Luke Sharrett/Bloomberg)

Apollo Pipes’ Share Price Surges To February 2018 High

Shares of Apollo Pipes Ltd. are trading at the highest in two-and-a-half years after SageOne Investment Advisors bought more than one lakh shares of the New Delhi-based pipemaker and distributor in large trades over the last two days.

The Samit Vartak-founded portfolio management services firm, which managed Rs 771.3-crore assets as of September, acquired 0.53% stake in Apollo Pipes on Monday at Rs 597.1 apiece and another 0.52% stake on Tuesday at Rs 602.2 apiece, according to data available on the BSE. The numbers of shares acquired over the two days are 69,714 and 67,729.

Shares of Apollo Pipes ended 1.5% higher at Rs 626.1 apiece on Wednesday. Of the nine trades since the company’s results on Oct. 29, the stock has gained in eight straight sessions—the longest winning streak in nearly three years. The scrip has gained 37% during this period.

Apollo Pipes, according to Bloomberg data, is trading at an FY22 price-to-earnings multiple of 30.53 times.

Apollo Pipes Q2 Results: Key Highlights

  • Apollo Pipes reported a 28% year-on-year rise in revenue during the July-September period. Its operating profit jumped 60% over the year earlier.
  • It’s on track to commission a greenfield facility in Raipur by March 2021.
  • It will double the capacity of its newly launched Apollo Life—a water storage tank at its Secunderabad facility—owing to strong acceptance in the domestic market.
  • It’s on track to achieve a production capacity of over 1 lakh MTPA by March 2021.
  • It’s targeting volume growth of more than 25% CAGR over the next three years.
  • Value-added product categories and new launches are likely to provide impetus to volumes and profitability.
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