Apollo Pipes wants to be the “Supreme Industries of tomorrow,” but right now looks more like the struggling junior who roped in Amitabh Bachchan and Raveena Tandon to sell plastic taps. With ₹905 Cr sales, ₹28 Cr PAT, and a P/E of 66x, the company is valued like a growth rocket but running on a scooter engine. Expanding capacity from 1.36 lakh tonnes to 2.86 lakh tonnes over the next 3-4 years, Apollo is betting ₹500 Cr CAPEX on Indians flushing more water.
2. Introduction
Apollo Pipes is part of the Apollo family (yes, the same folks behind Apollo Tyres and APL Apollo Tubes). Unlike tyres and steel tubes, here the product is humble plastic pipes, tanks, and fittings — basically everything you don’t notice in your bathroom until it leaks.
The Indian plastic piping industry is no joke: agriculture, infra, telecom ducts, real estate plumbing. Big brothers like Supreme, Astral, and Finolex already dominate, but Apollo is trying to carve space with product diversity (1,600+ SKUs) and celebrity endorsements. They even launched faucets, taps, showers, and water tanks. Because why stop at pipes when you can also sell the things pipes connect to?
But here’s the disconnect: margins are thin, ROE is a meagre 4.5%, and sales have actually declined in FY25. Yet the stock trades at a luxury 66x P/E. Are investors expecting Apollo to morph into Astral overnight, or are they just falling for Big B’s smile in the ads?
