At a Glance (Excerpt)
APL Apollo isnāt just bending metal ā itās bending the rules of steel profitability. From ā¹8,500 Cr in sales in FY21 to over ā¹20,000 Cr by FY25, this tube titan has structurally redefined the āboring steel business.ā But with a P/E of 68 and promoter holding on a steady diet, is the stock hollow inside or built like a skyscraper?
1ļøā£ What Do They Even Do? (A.K.A: The āTubesā Are Not Internet Ones)
APL Apollo makes branded steel pipes and structural tubes. Think:
- šļø Buildings
- š Agriculture
- āļø Solar frames
- š„ Hospitals
- š« Airports
Basically, if Indiaās building it, APL Apollo has probably supplied some part of its skeleton.
Product Split (FY24):
- Apollo Structural ā 68%
- Apollo Z ā 28%
- Apollo Galv ā 4%
Their product sizes range from 10Ć10 mm to
a chonky 1000Ć1000 mm ā a world first.
2ļøā£ 5-Year Financial Timeline: Steel-Strong Compounding š¹
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales (ā¹ Cr) | 8,500 | 13,063 | 16,166 | 18,119 | 20,690 |
| Net Profit (ā¹ Cr) | 408 | 619 | 642 | 732 | 757 |
| OPM % | 8% | 7% | 6% | 7% | 6% |
| EPS (ā¹) | 14.4 | 24.7 | 23.1 | 26.4 | 27.3 |
| ROCE (%) | 26% | 32% | 27% | 25% | 23% |
| Debt (ā¹ Cr) | 520 | 581 | 873 | 1,144 | 634 |
š” Takeaway: Revenue up 2.4x. Profit up 1.9x. OPM? Meh. But ROCE stayed muscular.
3ļøā£ Whatās Working: The Empire of Steel
šØ Market Dominance
- From 27% market share in FY16 ā now 50%+
- Targeting 60% by FY25
- Thatās HDFC Bank-level dominance, but in tubes.
š§Ŗ Innovation on Steroids
- 16 patents filed
- First in the world to launch color-coated structural tubes
- Only company globally making 1000Ć1000 mm tubes
š Infra-Ready Distribution
- 10 manufacturing units
- 800+ distributors
- 50,000+ retailers/fabricators
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