dynamic levels aplapollo tubes company is headquartered in delhi ncr, and has six manufacturing...

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Report By: Vikash Kandoi – [email protected]

mailto:[email protected]

Source: Company, www.dynamiclevels.com

A strong vision for 2020

Company Overview and Stock price ……………………………………….……3

Product Overview……………………………………………………………….….…..4

Capex Plan…………………………………………………………………….…………..7

Direct Forming Technology…………………………………………………………7

Vision 2020……………………………………………………………………………….9

Focus on Branding ……………………………………………………………………10

Industry Outlook……………………………………………………………………….11

Company Financial….……………….…………….……………………….….…….14

Balance Sheet…………………………………………..………….………….….…….15

Cash Flow……………..………………………………..…………….……………….…16

Ratios……………..………………………………..…………….………………...….…16

Peer Comparison…………….…………………………………………….……..…..17

Shareholding Pattern…………………………………………..……………....…. 18

Investment Rationale………………………………………...………….......…....19

Disclaimer…………………………………………………………………………….…20


Company’s Overview and Stock Price APL Apollo is the fastest growing steel tube manufacturer in India,

and has attained pole position in this category.

The company is headquartered in Delhi NCR, and has six

manufacturing facilities that are located in

1. Sikandrabad (3 units) (Uttar Pradesh)

2. Bangalore (Karnataka)

3. Hosur (Tamil Nadu)

4. Murbad (Maharashtra).

The Company’s vast distribution network is spread all across India,

with warehouses cum- branch offices in 20 cities.

The company’s product basket today boasts of over 400 products.

The company believes that developing new and innovative products

is a key driver to profitable growth. These products find widespread

use in structural applications in urban infrastructures, housing,

irrigation, solar plants, greenhouses and engineering applications.

Today, the company is globally recognized as one of the lowest cost

producers!

EXCHANGE SYMBOL APL APOLLO

Current Price * (Rs.) 906.75

Face Value (Rs.) 10

52 Week High (Rs.) 928.55 (06-Jun-16)

52 Week Low (Rs.) 370.00 (29-Jun-15)

Life Time high (Rs.) 928.55 (06-Jun-16)

Life Time low (Rs.) 115.90 (12-Jan-12)

Average Daily

Movement [ADM] 31.31

Average Volume 28760

1 Month Return (%) 9.96

P/E Ratio (x) 21.07

Book Value 244.33

Market Cap 2104.20 (Cr)

% of Promoter pledged 0

The stock has gained momentum from Rs. 500 levels

and currently trading at all time high at Rs. 910. Any

correction in the stock is a buying opportunity.


Product Overview

MS Black Round Tubes

Galvanised Iron Tubes

Pre Galvanised Tubes

Hollow Sections

API Tubes

Dynamically Balanced Tubes

Special Product

Hollow Section Pipe

Window Section

Flat Oval / Capsule Section

Handrail

D– Section

Elliptical Tube

Narrow Section

1. MS Black Round Tubes

APPLICATION

Liquid Transmission

Idlers

Mech. and General Engineering

Structural

Water and Sewage

Water Wells

Fire Protection

Fencing & Many


2. Galvanised Iron Tubes

Galvanized steel pipes, manufactured by APL Apollo Tubes Ltd, are

covered by a layer of zinc. Galvanized steel pipes and tubes are

mostly used in structural applications. Galvanized steel pipes and

tubes are available in various size and shapes based on the

customer's requirements.

Steel tubes that undergo the hot-dipped galvanized process.

Pre-manufactured steel tubes dipped in molten zinc provide

excellent corrosion resistance.

Range includes products from 21-273 mm outer diameter.

Used in underground piping, over ground piping, power,

refineries, scaffolding, engineering structural’s, scientific

experiments and fire-fighting systems.

3. Pre Galvanised Tubes

This category of APL Apollo steel tubes is generally made out of MS

Galvanized Sheets. There are many preventive coatings (natural &

synthetic) which are applied either before or after the production of

tubes.

Made from pre-galvanized sheets.

Several coatings applied before and after tube production

Tubes are tough, durable, light-weight and zinc coated from

pre-galvanized sheets.

Finds application in fencing, cabling and ducting, automotive

(bus body) and greenhouse structures

Product range comprises various sizes from 1/2" to 4" with

19--114.3 mm outer diameter

To make pre galvanized tubes and hollow sections, Apollo

Metalex and Shri Lakshmi Metal Udyog (wholly-owned

subsidiaries) were integrated backwards with in-house sheet

galvanising facilities.

In the recent technological innovations and analysis by the experts,

it has been proved that the APL Apollo tubes made by pre galvanized

sheets are giving very good durability, stability, adherence as well as


a longer sustainability without atmospheric corrosion. These

technological phenomenon’s are adopted by the steel

manufacturers for enhancing their market potential as well as the

profitability as they have very optimum cost control parameters.

4. Hollow Sections

APPLICATIONS

Construction

Machinery

Automotive

Furniture

Storage System

Transmission Tower

5. API Tubes

The purpose of this specification is to provide standards for pipe

suitable for use in conveying gas, water, and oil in both the oil and

natural gas industries. This specification covers welded steel line

pipe. It includes plain-end, threaded-end, and belled-end pipe, as well

as through-the-flow line (TFL) pipe and pipe with ends prepared for

use with special couplings. Although the plain-end line pipe meeting

the specification is primarily intended for field makeup by

circumferential welding, the manufacturer will not assume

responsibility for field welding.

6. Dynamically Balanced Tubes

First ever, Rotary Sizing Mill (RSM) supplied by KUSAKABE ELECTRIC

& MACHINERY COMPANY LIMITED, JAPAN has been commissioned

at APL Apollo Tubes Limited at their plant at Hosur, Tamilnadu. This

equipment, first of its kind in India, is capable of achieving accuracy

& precision as high as required for dynamically balanced tubes &

surface finish as good as achieved by cold drawn process for most

demanding customers.


Capex Plans

• Setting up a new plant in Raipur with 2 Lakh TPA for

making their presence Pan India

• Initiated plans for a new plant in UAE with a total

capacity of 3 Lakh TPA with 6 lines

• Ordered 8 lines of new HSU technology mills that will

add over 5 Lakh TPA at the existing sites in this year

• Venturing into precision tubes for Automotive

applications with a greenfield site in Bangalore(One Lac

TPA)

• Setting up an Online Galvanising plant of 1 Lakh TPA in

Bangalore for the first time in India

• Overall Capex of 500 Cr in the next 3 years

• The Capex will be funded mainly from internal accruals.

Direct Forming Technology- World’s Best 25

• Latest Global Technology for making Hollow Sections

• Unlike Traditional technology where round tube is

formed first and then is converted to rectangular or

square shape, here Hollow Sections are formed directly

through welding in high speed

• Can make hollow sections of any size within a range of

dimensions and thickness

• Savings in terms of Rolls Change time & space to store

Rolls


Direct Forming Technology-Opening new Market

Agriculture Implements

Gym/Sport Equipment

Solar tracking system

Truck & Bus body

Construction Equipment- Tower Crane

Pre-Fab Buildings

Heavy Vehicle Axles

Metros/Airports

Export Market- material saving benefit

Direct Forming Technology- World’s Best 25

Latest Global Technology for making Hollow Sections

Unlike Traditional technology where round tube is formed

first and then is converted to rectangular or square shape,

here Hollow Sections are formed directly through welding in

high speed

Can make hollow sections of any size within a range of

dimensions and thickness

Savings in terms of Rolls Change time & space to store Rolls


Vision 2020 Vision 2020 - New Initiatives

Focus on building the Company Board by roping in

independent directors with strong credentials

Building the second line of management. Incentivising the

core team by giving ESOPs and performance linked bonus

Aim to double the marketing & sales team in the next 2 years

to support their push for new products and geographies

Built detailed case studies to sell the new products using

HSU Technology

Bringing online galvanising technology for the first time in

India

Build a pan Indian presence by opening a new plant in Raipur

Set up an innovation centre to launch new product lines

Aim to become a consumer centric company, by spending on

R&D and reaching out to end customer

Vision 2020- Goals

Become One of the largest ERW Pipe manufacturer globally

Achieve volume sales of over 2.5 Million Tons Per Annum

Increase their volume sales by 25% CAGR

Increase their EBDITA margins from INR 3150 to INR 4000

per ton.

Target a core ROE of 30% Plus

Reduce their Working Capital to less than 50 days

Minimum Debt or try to become debt free by 2020.

Increase their dividend payout ratio to 20% above

Vision 2020 – Utilization In Lakhs /Annum

Capacity FY16 FY17 FY18 FY19 FY20

Existing 9 12 13 13 13

Raipur 1 2 2

Dubai 1 3

Direct Forming Tech Lines

1 3 5

Bangalore Precision Pipes

0.5 1

Bangalore Online Galvanising

0.5 1

Total Capacity

9 12 15 20 25


Vision 2020: 2.5 Million Tons

Achieve 2.5 Million Tons production by FY 2020 driven by a volume growth of over 25% p.a.

Well-planned Roadmap for capacity addition across plants

Profitable operations to fund capex through internal accruals

Highly solvent Balance Sheet to support scaled up

operations Focus on improving ROE

Proven ability to tap industry demand and grow sales

volumes above 25% sustainably

Value added products to replace low margin products

Greater focus on product and corporate branding

Focus on Branding

Intense focus on branding to garner a larger share of the

market

Targeting about 30,000 signage boards across the country

for higher visibility

Focused efforts at sponsoring plumbing meets and dealer

meets and participation in exhibitions in India and across the

world

One-of-a-kind “Fabricators and Plumbers” meet is being

organized across the length and breadth of the country to

generate interest in APL Apollo’s products among end users.

The above meets have at least 100-150 participants and their

technical and marketing team give insights on products

along with the advantages of using these products

Star Cruise for 4 days organized for over 1000 dealers and

distributors in Singapore and Malaysia

Approximate budget for branding in the current fiscal is

about Rs. 10 crore.


Industry Outlook

India is the world’s third-largest producer of crude steel (up from

eighth in 2003) and is expected to become the second-largest

producer by 2016. The growth in the Indian steel sector has been

driven by domestic availability of raw materials such as iron ore and

cost-effective labour. Consequently, the steel sector has been a

major contributor to India’s manufacturing output.

The Indian steel industry is very modern with state-of-the-art steel

mills. It has always strived for continuous modernisation and up-

gradation of older plants and higher energy efficiency levels.

Market Size

India’s crude steel capacity reached 109.85 Million Tonnes (MT) in

2014-15, a growth of 7.4 per cent. Production of crude steel grew by

8.9 per cent to 88. 98 MT. Total finished steel production for sale

increased by 5.1 per cent to 92.16 MT. Consumption of total finished

steel increased 3.9 per cent to 76.99 MT.

India produced 7.34 MT of steel in the month of September 2015,

which was nearly equal to the country's steel production in

September 2014.

The steel sector in India contributes nearly two per cent of the

country’s gross domestic product (GDP) and employs over 600,000

people. The per capita consumption of total finished steel in the

country has risen from 51 Kg in 2009-10 to about 59 Kg in 2014-15.

India's steel consumption for FY 2015-16 is estimated to increase by 7

per cent, higher than 2 per cent growth last year, due to improving

economic activity, as per E&Y's 'Global Steel 2015-16' report.

Investments

Steel industry and its associated mining and metallurgy sectors have

seen a number of major investments and developments in the recent

past.


According to the data released by Department of Industrial Policy

and Promotion (DIPP), the Indian metallurgical industries attracted

Foreign Direct Investments (FDI) to the tune of US$ 8.7 billion,

respectively, in the period April 2000–September 2015.

Some of the major investments in the Indian steel industry are as

follows:

National Mineral Development Corporation (NMDC) has

planned to invest Rs 40,000 crore (US$ 6.1 billion) in the next

eight years to achieve mining capacity of 75 million tonnes

per annum (MTPA) by FY2018-19 and 100 MTPA by FY2021-22,

compared to 48 MTPA current capacity.

Public sector mining giant NMDC Ltd will set up a greenfield

3-million tonne per annum steel mill in Karnataka jointly with

the state government at an estimated investment of Rs

18,000 crore (US$ 2.8 billion).

JSW Steel has announced to add capacity to make its plant in

Karnataka the largest at 20 MT by 2022.


Government Initiatives

The Government of India is aiming to scale up steel production in the

country to 300 MT by 2025 from 81 MT in 2013-14.

The Ministry of Steel has announced to invest in modernisation and

expansion of steel plants of Steel Authority of India Limited (SAIL)

and Rashtriya Ispat Nigam Limited (RINL) in various states to

enhance the crude steel production capacity in the current phase

from 12.8 MTPA to 21.4 MTPA and from 3.0 MTPA to 6.3 MTPA

respectively.

The Minister of Steel & Mines, Mr Narendra Singh Tomar, has

reiterated commitment of Central Government to support the

steel industry to reach a production target of 300 Million Tonne Per

Annum (MTPA) in 2025.

The Ministry of Steel is facilitating setting up of an industry driven

Steel Research and Technology Mission of India (SRTMI) in

association with the public and private sector steel companies to

spearhead research and development activities in the iron and steel

industry at an initial corpus of Rs 200 crore (US$ 31.67 million).

Some of the other recent government initiatives in this sector are as

follows:

Government of India plans to auction eight coal blocks with

reserves of 1,143 million tonnes to steel and cement firms in

January 2016, as per coal secretary Mr. Anil Swarup.

Government has planned Special Purpose Vehicles (SPVs)

with four iron ore rich states i.e., Karnataka, Jharkhand,

Orissa, and Chhattisgarh to set up plants having capacity

between 3 to 6 MTPA.

SAIL plans to invest US$ 23.8 billion for increasing its

production to 50 MTPA by 2025. SAIL is currently expanding

its capacity from 13 MTPA to 23 MTPA, at an investment of

US$ 9.6 billion.

A Project Monitoring Group (PMG)

has been constituted under the

Cabinet Secretariat to fast track

various clearances/resolution of

issues related to investments of Rs

1,000 crore (US$ 152 million) or

more.

To increase domestic value addition

and improve iron ore availability for

domestic steel industry, duty on

export of iron ore has been

increased to 30 per cent


Company Financials

In Crs. Mar'16 Mar'15

Growth % Annual Annual

Net Sales/Income from operations 4209.59 3013.78 39.68%

Other Operating Income 4.97 --

Total Income From Operations 4214.56 3013.78 39.84%

Increase/Decrease in Stocks -21.11 -3.93

Consumption of Raw Materials 2991.39 2699.47 10.81%

Purchase of Traded Goods 594.72 10.91

Employees Cost 63.10 39.24 60.81%

Depreciation 34.10 22.01

Other Expenses 304.87 84.90

Total Expenditure 3967.07 2852.60 39.07%

Operating Profit 247.49 161.18 53.55%

Other Income 10.37 3.00

P/L Before Int., Excpt. Items & Tax 257.86 164.18

Interest 69.52 66.45 4.62%

P/L Before Exceptional Items & Tax 188.34 97.73

Exceptional Item -25.33 -0.05

P/L Before Tax 163.01 97.67

Tax 62.43 33.92

Net Profit/(Loss) For the Period 100.58 63.76 57.75%

Equity Share Capital 23.44 23.44

Reserves 544.11 448.66

EPS (Rs.) [After Extraordinary items] 42.91 27.20 57.76%

Company’s revenue has jumped by 39.68% annually from Rs. 3013.78 crs to Rs. 4209.59 crs Company’s operating profit jumped by 53.55% annually. Company’s interest cost has increased marginally 4.62%. Net profit has jumped by 57.75% annually. Operating profit margin during the year was 5.86% Net profit margin during the year was 2.38%.


Balance Sheet

Cash Flow

Balance Sheet of APL Apollo Tubes

Mar'15 Mar'14 Mar'13 Mar'12 Mar'11

Annually Annually Annually Annually Annually

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 23.44 23.44 22.32 21.3 20.3

Total Share Capital 23.44 23.44 22.32 21.3 20.3

Reserves and Surplus 318.38 302.08 274.46 236.92 196.54

Money Received Against Share Warrants 0 0 4.04 8.26 7.22

Total Share holder’s Funds 341.81 325.51 300.83 266.48 224.06

NON-CURRENT LIABILITIES

Long Term Borrowings 83.60 93.94 47.39 47.96 22.61

Deferred Tax Liabilities [Net] 44.54 34.58 27.46 19.66 13.37

Other Long Term Liabilities 0.05 0.05 0.05 0 0

Long Term Provisions 1.28 0.96 0.63 0.42 0.29

Total Non-Current Liabilities 129.48 129.53 75.54 68.04 36.26

CURRENT LIABILITIES

Short Term Borrowings 272.05 261.51 250.68 144.54 142.29

Trade Payables 39.76 61.55 61.63 43.43 33.31

Other Current Liabilities 43.6 29.28 26.24 24.28 10.76

Short Term Provisions 19.98 18.99 18.31 9.15 9.92

Total Current Liabilities 375.40 371.33 356.85 221.4 196.28

Total Capital And Liabilities 846.69 826.38 733.22 555.91 456.6

ASSETS

NON-CURRENT ASSETS

Tangible Assets 295.18 230.01 185.46 124.12 103.88

Capital Work-In-Progress 20.08 14.54 1.7 33.92 11.29

Intangible Assets Under Development 3.62 3.38 0.99 0 0

Fixed Assets 318.87 247.94 188.15 158.03 115.17

Non-Current Investments 88.10 86.6 77.97 76.81 79.02

Long Term Loans And Advances 66.59 69.77 78.51 53.98 37.53

Other Non-Current Assets 11.5 11.57 5.58 2.24 0.97

Total Non-Current Assets 485.05 415.87 350.21 291.06 232.69

CURRENT ASSETS

Inventories 183.35 180.71 177.55 93 97.22

Trade Receivables 120.16 182.25 165.44 139.89 80.68

Cash And Cash Equivalents 9.61 4.05 9.86 3.15 18.34

Short Term Loans And Advances 39.22 33.62 25.17 19.08 14.68

Other Current Assets 9.29 9.88 4.99 9.74 12.99

Total Current Assets 361.63 410.51 383.01 264.85 223.91

Total Assets 846.69 826.38 733.22 555.91 456.6


Cash Flow of APL Apollo Tubes

In Cr Mar'15 Mar'14 Mar'13 Mar'12 Mar'11

Annually Annually Annually Annually Annually

Net Profit/Loss Before Extraordinary Items And Tax 44.23 39.29 54.56 43.02 37.51

Net Cash Flow From Operating Activities 161.38 68.14 -21.43 30.39 20.11

Net Cash Used In Investing Activities -90.70 -83.62 -53.14 -63.62 -81.63

Net Cash Used From Financing Activities -65.11 9.67 81.28 18.04 53.53

Net Inc/Dec In Cash And Cash Equivalents 5.56 -5.81 6.72 -15.19 -7.99

Cash And Cash Equivalents Begin of Year 4.05 9.86 3.15 18.34 26.33

Cash And Cash Equivalents End Of Year 9.61 4.05 9.86 3.15 18.34

Company has a positive operating cash flow for last five years.

Company has made investment of Rs. 90.70 crs in

Key Financial Ratios of APL Apollo Tubes Mar' 15 Mar'14 Mar'13 Mar'12 Mar'14

Per Share Ratios

Basic EPS (Rs.) 13.42 11.38 15.89 14.13 12.5

Diluted EPS (Rs.) 13.42 11.38 15.12 12.27 11.57

Cash EPS (Rs.) 18.54 15.38 19.05 16.44 14.83

Book Value [ExclRevalReserve]/Share (Rs.) 145.83 138.88 134.75 125.13 110.39

Dividend / Share(Rs.) 6 5 5 2 2

Profitability Ratios

PBT Margin (%) 2.19 1.9 3.39 3.96 6.36

Net Profit Margin (%) 1.55 1.27 2.15 2.65 4.3

Return on Networth / Equity (%) 9.20 8.04 11.51 10.79 11.32

Return on Capital Employed (%) 6.67 5.75 9.2 8.59 9.74

Return on Assets (%) 3.71 3.16 4.72 5.17 5.55

Total Debt/Equity (X) 1.04 1.09 0.99 0.72 0.74

Asset Turnover Ratio (%) 238.23 248.95 219.46 195.05 129.04

Liquidity Ratios

Current Ratio (X) 0.96 1.11 1.07 1.2 1.14

Quick Ratio (X) 0.47 0.62 0.58 0.78 0.65

Inventory Turnover Ratio (X) 11.00 11.38 9.06 11.66 6.06

Earnings Retention Ratio (%) 55.29 55.25 67.8 85.18 84.01

Cash Earnings Retention Ratio (%) 67.65 67.5 73.76 87.82 86.52

Valuation Ratios

Enterprise Value (Cr.) 1286.64 815.84 659.68 567.37 408.89

MarketCap/Net Operating Revenue (X) 0.47 0.23 0.23 0.35 0.45

Earnings Yield 0.03 0.06 0.09 0.08 0.1


Peer Comparison

# INSTRUMENT Price Avg.

Volume Market Cap (Rs. in Cr)

1 ABB INDIA 1219.00 52521 25676

2 APL APOLLO 912.00 24727 2125

3 BEML 850.55 306663 3546

4 CARBORUNDUM UNIVERSAL

217.20 30307 4068

5 ESAB INDIA 560.00 2824 878

APL Apollo has good volume and market cap which gives

liquidity to the stock.

# INSTRUMENT Price % Pledged % FII

Holding P/E Ratio

(X)

1 ABB INDIA 1219.00 0.00 4.31 81.01

2 APL APOLLO 912.00 0.00 0.14 21.14

3 BEML 850.55 0.00 5.43 67.37


217.20 1.74 20.35 28.60

5 ESAB INDIA 560.00 0.00 10.72 30.92

FII does not hold big position right now in APL Apollo but stock is trading at

low PE multiple compare to peer company.

# INSTRUMENT Price Debt

Equity Ratio

Int. Coverage

Ratio

1 ABB INDIA 1219.00 0.13 8.07

2 APL APOLLO 912.00 0.92 2.80

3 BEML 850.55 0.29 1.83


217.20 0.25 11.43

5 ESAB INDIA 560.00 0.00 98.03

APL Apollo has debt to equity ratio of 0.92 which below 2

and Interest coverage ratio is 2.80; i.e the company can

pay its debt easily from its profits.

SL INSTRUMENT 1M 3M 6M 1Y

1 ABB INDIA -4.13 6.89 9.13 -4.09

2 APL APOLLO 7.32 38.18 32.97 135.43

5 BEML -5.36 -17.71 -20.9 -31.44


-2.09 24.25 16.04 31.68

5 ESAB INDIA 1.71 -0.75 -3.44 -12.46

APL Apollo has surged 135.43% in 1 year the stock is an all time performer

stock.


Shareholding Pattern

Shareholding Pattern Mar-16 Dec-15 Sep-15 Jun-15 Mar-15

Promoter and Promoter Group (%) 40.64 40.64 42.37 42.37 42.47

Indian 40.64 40.64 42.37 42.37 42.47

Foreign NIL NIL NIL NIL NIL

Institutions (%) 17.00 36.57 22.88 22.60 21.06

FII 0.14 NIL 6.39 6.39 6.51

DII 16.86 36.57 16.49 16.21 14.56

Non Institutions (%) 42.36 22.79 34.75 35.03 36.47

Bodies Corporate NIL NIL 3.03 3.15 3.30

Others 42.36 22.79 31.72 31.88 33.17

Custodians NIL NIL NIL NIL NIL

Total no. of shares (cr.) 2.34 2.34 2.34 2.34 2.34

DII hold 16.86% of stake in APL Apollo

COMPANY PROFILE OF APL APOLLO, NSE, INDIA

Date of Incorporation 24-Feb-1986

Date of Listing 14-Dec-2011

Management

Name Designation

Sanjay Gupta Chairman

Abhilash Lal Director

Anil Kumar Bansal Director

S T Gerela Director

Vinay Gupta Director

Neeru Abrol Director

Ashok K Gupta Managing Director

Registered Office Address

37, Hargobind Enclave,Vikas Marg,110092,New Delhi India

Website http://www.aplapollo.com

Persons holding securities more than 1% of total number of shares under category Public Shareholding.

Category Mar'16 Dec'15 Sep'15 Jun'15 Mar'15

ABHA BHANSHALI Non-Promoters 1.14 1.33 1.59 1.59 1.59

HUF Non-Promoters 1.46 NIL NIL NIL NIL

ASHISH KACHOLIA Non-Promoters 2.13 2.13 NIL NIL NIL

Foreign Individuals or NRI Non-Promoters 2.13 NIL NIL NIL NIL

NARENDRA KUMAR AGARWAL Non-Promoters 2.29 2.09 NIL NIL NIL

SAMEER MAHENDRA SAMPAT Non-Promoters 2.38 2.38 2.38 2.38 2.38

Bodies Corporate Non-Promoters 3.36 NIL NIL NIL NIL

DSP BLACKROCK MICRO CAP FUND Non-Promoters 4.95 3.47 3.47 3.47 3.47

HDFC TRUSTEE COMPANY LIMITED - HDFC PRUDENCE Non-Promoters 4.97 4.97 4.97 4.83 3.29

Ashok Kumar Gupta Promoters 6.40 6.40 6.40 6.40 6.40

IDFC PREMIER EQUITY FUND Non-Promoters 6.77 6.77 6.77 6.77 6.77

Overseas corporate bodies Non-Promoters 20.30 NIL NIL NIL NIL

APL Infrastructure Private Limited Promoters 34.24 34.24 34.24 NIL NIL

Announcement Date

Ex-Date Amount

Interim/Final

31-May-2016 To Be Announced

10.00

Final

11-May-2015 13-Aug-2015 6.00 Final

30-May-2014 17-Sep-2014 5.00 Final

30-May-2013 07-Aug-2013 5.00 Final

04-Sep-2012 20-Sep-2012 2.00 Final

19-Oct-2010 29-Oct-2010 1.00 Interim

29-Jul-2010 06-Aug-2010 1.00 Interim

26-Apr-2010 07-May-2010 1.00 Interim

11-Jan-2010 19-Jan-2010 1.00 Interim

10-Jan-2007 24-Jan-2007 1.00 Interim


Investment Rationale

Company’s revenue has jumped by 39.68% annually from Rs. 3013.78 crs to Rs. 4209.59 crs

Company’s operating profit jumped by 53.55% annually.

Company is focusing on branding to garner a larger market share

APL Apollo has over 600 distributors and 26 warehouses as of FY 2016

APL Apollo is the only player with manufacturing facilities across North, South and West India.

Current capacity utilization is 85%

Setting up a new plant in Raipur with 2 Lakh TPA for making our presence Pan India

Initiated plans for a new plant in UAE with a total capacity of 3 Lakh TPA with 6 lines

Setting up an Online Galvanising plant of 1 Lakh TPA in Bangalore for the first time in India

Overall Capex of 500 Cr in the next 3 years

The Capex will be funded mainly from internal accruals.

Apl Apollo is a latest Global Technology for making Hollow Sections

Company can make hollow sections of any size within a range of dimensions and thickness

Company aims to double the marketing & sales team in the next 2 years to support their push for

new products and geographies by 2020

Company target a core ROE of 30% Plus by 2020

Minimum Debt or try to Become debt free by 2020

Company want to increase their volume sales by 25% CAGR

APL Apollo has surged 135.43% in 1 year the stock is an all time performer stock.

We recommend BUY in APL APOLLO @ 850-860 with the target of 1080

https://www.dynamiclevels.com/en/apl-apollo-share-price-forecast


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DYANMIC/its Associates/ Research Analyst/ his Relative have any financial interest in the subject company? No

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dynamic levels aplapollo tubes company is headquartered in delhi ncr, and has six manufacturing...

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