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APL Apollo remains committed to its capital expenditure plan to augment its capacity from 4.5 mt currently to 6.8 mt by FY28 at an estimated outlay of Rs 15 billion to be incurred equally over three years. In the near term, optimal utilisation at Raipur and Dubai plants is likely to support volume growth while the company primarily focuses on margin sustenance and expansion..NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.We alter our FY26E/FY27E Ebitda estimates of APL Apollo Tubes Ltd. by +3%/+7% based on moderately higher Ebitea/tonne assumption and introduce FY28 estimates assuming 12% YoY growth and Rs 5,000/t Ebitda. We expect adjusted profit after tax to deliver 13%/24%/23% revenue/Ebitda/PAT CAGR over FY25-FY28E. The management reiterated its primary focus on margin expansion as it simultaneously targets volume growth through-improving utilisation rates enabling operating leverage, andaggressive pricing strategies in a smaller general structures segment (SG premium) to compete in the Patra pipe segment, andselling other general structures at a premium, leveraging its market share. The Ebitda/t growth outlook is solidified by this quarter’s performance, witnessing a steep drop in HRC prices, which have likely bottomed out and have safeguard duties in place to prevent further decline. We value APAT 25x H1 FY28E EV/Ebitda with a revised target price of Rs 1,959/share (Rs 1,718/share earlier). Maintain Hold..Click on the attachment to read the full report:.Coal India Q2 Review: Motilal Oswal Maintains 'Buy' Despite Muted Results — Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
