Apollo Pipes targeting to achieve 1000 Cr in 2023 from 560 Cr in 2021 which is approx. 33% CAGR on sales. This
will give company PAT around 110 on 11% PAT margin(conservative) and that will be around 26% PAT growth.
Moved from Satellite to Core for next 2 years.
My average entry price is 1070(PE around 18) with complete allocation of 5% on current capital. Expected to
achieve the invested amount doubled or more by 2023. Risk is that company price is very far from 11 ema and
hence expected correction/fall in near term.
Overall, Bullish on this company.
-Strong capex done in previous 2-3 quarter via internal accruals
- Strong Infra Tailwind and PVC segment itself growing at 10%
- Strong balance sheet with + Net cash and d/e ratio 0.18
- Company launching new product (Water storage tanks), New high margin product category (Bathroom
fittings) and expanding to new geography in central and east India
- Strong Chart
Company Brief –
• Apollo Pipes is engaged in the manufacturing and trading of PVC Pipes and Fittings.
• Revenue Mix
• Sales volume decreased marginally by 2% to 10,402 metric ton due to countrywide pandemic in Q1
2022
• Improved contribution from the high-margin fitting segment resulted in a better gross margin
performance during the quarter.
• Capex - Greenfield facility at Raipur which would have installed capacity of 7,200 metric ton per
annum
• Continue to witness a positive traction in price of APL Apollo water storage tanks
• Revenue from operations for the quarter stood at 137.6 Crores as against 92.5 Crores in Q1 FY2021
higher by 49% Y-o-Y.
• EBITDA for the quarter grew by 182% Y-o-Y which stood at 17.4 Crores as against 6.2 Crores in Q1
FY2021. EBITDA margin, stood at 12.7% in Q1 FY2022 as against 6.7% in Q1 FY2021 higher by 598 BPS
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