⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
APLAPOLLO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | APLAPOLLO | Market Cap | 55,794 Cr. | Current Price | 2,010 ₹ | High / Low | 2,301 ₹ |
| Stock P/E | 113 | Book Value | 114 ₹ | Dividend Yield | 0.29 % | ROCE | 14.7 % |
| ROE | 10.7 % | Face Value | 2.00 ₹ | DMA 50 | 2,059 ₹ | DMA 200 | 1,856 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.99 % | PAT Qtr | 120 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 42.4 | MACD | -43.6 | Volume | 6,06,768 | Avg Vol 1Wk | 8,32,610 |
| Low price | 1,367 ₹ | High price | 2,301 ₹ | PEG Ratio | -8.34 | Debt to equity | 0.25 |
| 52w Index | 68.8 % | Qtr Profit Var | 38.7 % | EPS | 17.8 ₹ | Industry PE | 18.1 |
📊 Core Financials
- Profitability: PAT rose from ₹106 Cr. to ₹120 Cr. (Qtr Profit Var: +38.7%)
- Margins: ROCE at 14.7% and ROE at 10.7% show moderate efficiency
- Debt: Debt-to-equity ratio at 0.25 indicates manageable leverage
- Cash Flow: EPS at ₹17.8 is modest relative to market cap
💰 Valuation Indicators
- P/E Ratio: 113 vs Industry PE of 18.1 → extremely overvalued
- P/B Ratio: Current Price ₹2,010 vs Book Value ₹114 → ~17.6x book
- PEG Ratio: -8.34 → distorted due to earnings volatility
- Intrinsic Value: Current valuation far exceeds fundamentals
🏢 Business Model & Health
- Market Cap: ₹55,794 Cr. reflects strong presence in steel tubes and structural products
- Dividend Yield: 0.29% provides minimal shareholder return
- Competitive Advantage: Market leader in structural steel tubes with wide distribution
- Overall Health: Growth visible but valuations stretched and returns modest
🎯 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹1,400–1,600 if market correction occurs
- Long-Term Holding: Risky at current valuations; suitable only if earnings growth accelerates
✅ Positive
- Quarterly PAT growth (+38.7%)
- Low debt-to-equity ratio (0.25)
- DII holding increased (+0.99%)
⚠️ Limitation
- Extremely high P/E ratio (113)
- P/B ratio ~17.6x indicates expensive valuation
- PEG ratio negative, reflecting unstable earnings growth
📉 Company Negative News
- FII holding decreased (-0.60%)
- Stock trading below 50DMA (₹2,059), showing weakness
📈 Company Positive News
- DII holding increased (+0.99%)
- Quarterly PAT improved to ₹120 Cr.
🏭 Industry
- Industry PE: 18.1, far below APL Apollo’s PE
- Steel and structural products sector benefits from infrastructure demand
🔎 Conclusion
APL Apollo is a market leader in structural steel tubes with visible growth momentum.
However, its current valuation is highly stretched compared to industry peers, with modest efficiency metrics.
While suitable for long-term investors if earnings growth accelerates, entry is recommended only at lower levels around ₹1,400–1,600 to balance risk and reward.