APLAPOLLO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | APLAPOLLO | Market Cap | 52,894 Cr. | Current Price | 1,905 ₹ | High / Low | 2,301 ₹ |
| Stock P/E | 107 | Book Value | 114 ₹ | Dividend Yield | 0.30 % | ROCE | 14.7 % |
| ROE | 10.7 % | Face Value | 2.00 ₹ | DMA 50 | 2,022 ₹ | DMA 200 | 1,890 ₹ |
| Chg in FII Hold | 4.40 % | Chg in DII Hold | -3.86 % | PAT Qtr | 120 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 39.0 | MACD | -14.6 | Volume | 7,59,568 | Avg Vol 1Wk | 6,38,632 |
| Low price | 1,492 ₹ | High price | 2,301 ₹ | PEG Ratio | -7.91 | Debt to equity | 0.25 |
| 52w Index | 51.0 % | Qtr Profit Var | 38.7 % | EPS | 17.8 ₹ | Industry PE | 22.1 |
📈 Positive
- Large market capitalization of ₹52,894 Cr. ensures liquidity and industry presence.
- Debt-to-equity ratio of 0.25 indicates manageable leverage.
- Quarterly PAT improved to ₹120 Cr. from ₹106 Cr., showing earnings growth (+38.7%).
- FII holdings increased (+4.40%), reflecting strong foreign investor confidence.
- Trading near DMA 200 (₹1,890) provides technical support zone.
⚠️ Limitation
- Extremely high P/E ratio of 107 vs industry average of 22.1, signaling severe overvaluation.
- Weak ROE (10.7%) and ROCE (14.7%) highlight modest efficiency.
- Negative PEG ratio (-7.91) suggests unsustainable valuation relative to growth.
- EPS of ₹17.8 is low compared to price, limiting intrinsic value.
- Dividend yield of 0.30% offers negligible income support.
- RSI at 39.0 and MACD negative (-14.6) indicate weak momentum.
🚨 Company Negative News
- DII holdings declined (-3.86%), showing reduced domestic institutional confidence.
- Valuation multiples remain stretched compared to peers.
- Weak technical indicators suggest bearish sentiment.
🌟 Company Positive News
- Strong quarterly PAT improvement supports earnings momentum.
- High trading volume (7.59 lakh vs avg 6.38 lakh) indicates strong liquidity.
- 52-week index performance at 51.0% shows relative strength.
🏭 Industry
- Industry P/E of 22.1 highlights APL Apollo’s premium valuation.
- Steel and construction sector growth remains cyclical, requiring consistent earnings to justify premium multiples.
- Sector outlook tied to infrastructure expansion and housing demand.
📝 Conclusion
APL Apollo is liquidity-rich but fundamentally overvalued, with modest ROE/ROCE and stretched valuations. While earnings growth is visible, intrinsic value does not justify current pricing.
🔑 **Entry Zone:** ₹1,850–₹1,900, closer to DMA 200 and valuation comfort.
📌 **Long-term Holding Guidance:** Suitable for cautious swing trades or partial long-term holding (2–3 years). Risk remains high due to stretched valuations; maintain strict stop-loss around ₹1,850.
This positions APL Apollo as a liquidity-driven but valuation-stretched stock. Would you like me to extend this into a peer benchmarking overlay (APL Apollo vs Tata Steel, JSW Steel, Jindal Steel) to highlight relative valuation and efficiency gaps?