Shares of APL Apollo Tubes fell more than 3% in early trading on August 29, following a 1.5% bulk transaction on the stock exchange today. Approximately 38 million shares (1.5% of shares) were offered on the stock market at an average price of Rs.1,618 per share, equivalent to Rs.624 million.
Money Control could not immediately identify the parties involved in the transaction, but CNBC-TV18 previously reported that the company’s founders intended to reduce part of their stake.
As of 09:27 am, shares of APL Apollo Tube were trading at Rs 1,621.65 on the National Stock Exchange, down 2.63% from the previous close.
CNBC-TV18 reported that the base size of the block trade is expected to be around Rs.
Approximately 26.3 million shares (0.85% stake) will be sold by the promoters at a minimum price of Rs 1,595 per share, a discount of 4.4 per cent from Monday’s closing price of Rs 1,668.80. CNBC-TV18 reported, citing a stock insider. Meanwhile, the company also aims to increase revenue/EBITDA by 2x and 2.5x respectively from FY23 to FY26. The management also announced a sales outlook of 2.8-3 million tons, 3.6-4 million tons and 4.6-5 million tons for 2024/25/26. In addition, the company also plans to invest around INR 600 crore for the expansion of production capacity by 5 million tons per year, of which INR 180 crore will be spent in the April-June quarter of this year and the rest It is planned to continue. It will be spent over the next three to four quarters.
mediation view
The company’s long-term vision is to increase its production capacity to 10 tons by his 30th fiscal year, although the total investment for the 24th fiscal year is expected to be around Rs 430 crore. Brokers are also positive about the company’s growth prospects. Motilal Oswal Financial Services, a brokerage firm, believes that a favorable demand outlook and the gradual expansion of production capacity to meet that demand will improve the volume growth prospects for APL Apollo Tubes.
Sherekhan also said the company’s strong earnings growth outlook, including high RoE/RoCE of 34%/42% in FY25E, will help narrow the valuation gap with its listed peers and soften the risk/reward scenario. I think so. The company is performing a ‘buy’ query on a stock with a target price of he Rs 1,720.
