ankit shah's Stock Idea
Ankit shah is Bullish on APL Apollo Tubes Ltd.
Idea Submitted on 06Dec,2018
  • 5 Total Ideas
  • 2 Active Ideas
  • 3 Closed Ideas
  • 0 Friends
  • 0 Followers
  • Avg. Returns
     -2.74%
    Rank
    50
    Success Rate
      20%
     Hi, GuestPlease Login to View Clearly
      Buy APL Apollo Tubes Idea
    Connect with top Investors, Financial Advisors and Stock Analysts
    Stockadda helps you make smarter and well informed investment decisions.
      Idea Status :  Active
    Idea is Open
     Time Frame
    3months
     Start Price
    1296
     Target Price
    1400
     Stop Loss
    1150
     Projected Gain
    104 (8.02% Upside)
     Live Returns
    -21     -1.62%
     Analysis
    Key Investment Rationale: H2FY19E to better than H1FY19, however slowdown in real-estate & construction remains a worry point Competition and higher input cost to cap margins Acquisition of Apollo Tricot Tubes to bring synergies but may take time to fructify Promoter infusion should bring down debt but dilute the earnings and return ratios Valuations & View: We believe while H1FY19 was tough, H2FY19 could see some pressure easing. However, slowdown in real estate could further impact demand for company’s products. We also await the benefits of DFT as they are yet to kick-in, while recent acquisition of Apollo Tricoat would open up chances of synergies but we expect the synergies would be gradual in nature and not immediate. Promoters’ infusion is likely to bring down Debt (0.92 in FY18 to 0.63 by FY20E) but would be earning dilutive in near term, while return ratios are unlikely to touch mid twenties as we had expected earlier.  We have valued the stock at 10X EV/EBITDA on FY20E EBIDTA of INR 4,813Mn against the 5 year average EV/EBITDA multiple of 8x. We continue with the “BUY” rating on the stock with a Target price of INR 1400.
     Stock Price Movement (EOD Basis)
     C.M.P APL Apollo Tubes
    1275
    Sentimeter
    Buy Calls: 6 Sell Calls: 0
    0
    0
    Members Liking This Stock Idea (0)
    No Likes Yet
    Members Disiking This Stock Idea (0)
    No Dislikes Yet

    Disclaimer: The views and stock ideas expressed by members on stockadda.com are their own, and not that of the website or its management.
    The views and stock ideas are for informational purposes only and should not be construed to be recommendations to buy or sell any securities.
    Stockadda.com advises members to check & consult with certified experts before taking any investment decisions.

    Popular Investing Books

    Christopher W. Mayer
    Elizabeth Collins
    Benjamin Graham
    George S. Clason
    Whitney Tilson
    Mohnish Pabrai

    Most Popular Authors

    Reduce your Brokerage by 100%!!

    Share This Idea

    
    Be a Smart & Well Informed Investor!
    Join Today its Free.
    Register or Login with just one Click using your Social Account