⚠ 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: 2.8
| Stock Code | APLAPOLLO | Market Cap | 59,337 Cr. | Current Price | 2,137 ₹ | High / Low | 2,196 ₹ |
| Stock P/E | 120 | Book Value | 114 ₹ | Dividend Yield | 0.27 % | ROCE | 14.7 % |
| ROE | 10.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,906 ₹ | DMA 200 | 1,754 ₹ |
| Chg in FII Hold | -0.60 % | Chg in DII Hold | 0.99 % | PAT Qtr | 120 Cr. | PAT Prev Qtr | 106 Cr. |
| RSI | 73.4 | MACD | 61.8 | Volume | 12,97,019 | Avg Vol 1Wk | 10,12,540 |
| Low price | 1,273 ₹ | High price | 2,196 ₹ | PEG Ratio | -8.87 | Debt to equity | 0.25 |
| 52w Index | 93.6 % | Qtr Profit Var | 38.7 % | EPS | 17.8 ₹ | Industry PE | 18.0 |
📊 Core Financials
- Revenue & Profitability: PAT improved from 106 Cr. to 120 Cr. (+38.7% variance), but EPS remains low at ₹17.8.
- Margins: ROE at 10.7% and ROCE at 14.7% are modest, below industry benchmarks.
- Debt: Debt-to-equity ratio of 0.25 indicates manageable leverage.
- Cash Flow: Profitability is improving, but high valuation raises sustainability concerns.
💹 Valuation Indicators
- P/E Ratio: 120 vs. industry average of 18 — extremely overvalued.
- P/B Ratio: Current price (₹2,137) vs. book value (₹114) → ~18.7x, premium valuation.
- PEG Ratio: –8.87, reflecting negative growth alignment with valuation.
- Intrinsic Value: Current valuation far exceeds fundamentals, suggesting overpricing.
🏢 Business Model & Competitive Advantage
- APL Apollo is India’s largest structural steel tube manufacturer, with strong distribution and scale advantages.
- Competitive edge lies in product innovation, wide network, and leadership in steel structures.
📈 Technicals & Entry Zone
- DMA 50 (₹1,906) and DMA 200 (₹1,754) show strong support below current price.
- RSI at 73.4 indicates overbought territory; MACD positive suggests bullish momentum.
- Entry Zone: Attractive only on dips near ₹1,750–1,850 for long-term investors.
- Long-Term Holding: Risky at current valuations; suitable only if earnings growth sustains.
✅ Positive
- Strong quarterly PAT growth (+38.7%).
- Low debt-to-equity ratio (0.25).
- Leadership position in structural steel tubes with wide distribution.
⚠️ Limitation
- Extremely high P/E ratio (120) compared to industry average.
- Weak ROE (10.7%) and ROCE (14.7%).
- Dividend yield of 0.27% is low despite profitability.
📉 Company Negative News
- FII holdings decreased (–0.60%), showing reduced foreign investor confidence.
- Stock trading in overbought zone (RSI 73.4), risk of short-term correction.
📈 Company Positive News
- DII holdings increased (+0.99%), showing strong domestic institutional support.
- Quarterly PAT improved to 120 Cr., reflecting operational strength.
🏭 Industry
- Steel and infrastructure sector benefits from government spending and construction demand.
- Industry average P/E (18) highlights APL Apollo’s extreme overvaluation.
🔎 Conclusion
- APL Apollo is financially stable with strong market leadership but modest returns.
- Valuations are stretched far beyond industry averages, making current levels risky.
- Recommendation: Avoid fresh entry at current price; accumulate only on dips near ₹1,750–1,850. Long-term holding viable only if earnings growth sustains and valuations normalize.