APL Apollo Tubes - The New Normal: Motilal Oswal Initiates Coverage
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
APL Apollo Tubes Ltd.’s diversified product portfolio and pan-India presence helps in mitigating concentration risk.
Higher sweating of assets (capacity utilisation at 63%) will lead to kicking-in of operating leverage and better profitability.
Robust distribution network, along with warehouses, higher retail network, and stock keeping units are expected to improve last-mile connectivity.
APL Apollo is the fifth largest player globally and leader in the domestic market, with an aggregate capacity at 2.6 million metric tonne.
Steady capacity addition, increase in penetration, and gains from unorganised players are expected to improve market share from current levels (~50%).
The merger with Apollo Tricoat Tubes’ (Tricoat) is margin and return on equity accretive and is expected to create value for shareholders.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.