On, April 30, 2020, it was at Rs. 142.88, and today, on April 28, 2022, the price of this stock has risen to 1007.95. Over the past two years, several stocks have given great returns. With this share, a new name has been added to that list. Do you own any share of this company in your portfolio? Should you invest in this stock? Read the complete article to know.
The company we are gonna discuss in this report is APL Apollo Tube. This stock has given return of more than 7 times in the last 2 years. Hence, if two years ago, someone had invested Rs 1 lakh in this stock, today it would have been more than Rs 7 lakh. Let’s discuss the necessary information about this company and its performance.
APL Apollo Tube
- APL Apollo Tube is a leading steelmaker in India. The company is headquartered in Delhi.
- The company manufactures about 1500 types of MS black pipes, galvanized tubes, pre-galvanized tubes, structural ERW steel tubes, and hollow sections.
- All of these materials are used in the country’s agriculture, infrastructure construction, solar power generation, etc.
- The company has a total of 10 factories across the country.
APL Apollo Tube Fundamental Analysis
- When we look at the fundamentals of this company, we can see that the market cap of this company is 25,226 crores. That means, it is a large-cap company. Large-cap companies are relatively more secure than mid-cap and small-cap companies. Again, the debt to equity ratio of this company is only 0.28. Usually, if this ratio is less than 1 it is considered as a very good sign. Another implication is that there is no debt burden on the company.
- On the other hand, the sales of this company have increased at the rate of 16.8% in the last 3 years, at the rate of 15.4% in the last 5 years, and at the rate of 19.1% in the last 7 years. APL Apollo Tube’s operating profit has also increased significantly in the last three quarters. At the same time, net profit has also increased significantly in the last three quarters. The company’s current ROE or return on equity is 23.6% which is very good. In addition, the company’s ROCE. ROCE or Return on Capital Employed 27.8% and EPS or Earnings Per Share 20.6%.
Should you invest in APL Apollo Tube
- Based on the above statistics, it can be said that this company is fundamentally very strong. Further, India is a developing country. In any developing country, steel is needed to build infrastructure. At present, steel is also exported from India. In addition, steel pipes are used for irrigation in agriculture. Steel will also be needed to build houses for 120 crore people. After all, the demand for steel for various government projects such as ‘Nal se jal‘ project, etc. will increase. Naturally, if the demand for steel increases, APL Apollo Tube will be benefitted from this, so as its shareholders. So you can think of investing in the shares of this company.
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