stock market
If you are looking for good returns by investing in the stock market, then this could be a great opportunity for you. Well-known brokerage firm Motilal Oswal has expressed great confidence in the shares of ‘APL Apollo Tubes’, the country’s largest company manufacturing structural steel tubes. The brokerage has given ‘Buy’ rating to this strong stock. At present this share is trading at the level of Rs 1794.65 on BSE. Motilal Oswal believes that in the coming time this share can go up to the target price of Rs 2150. This means that if investment is made at the current price, investors can get a huge profit of up to 20 percent.
Uncrowned king of steel tube industry
APL Apollo Tubes is not an ordinary company, but it Sector Is the undisputed market leader. This company has a huge dominance in India’s structural steel tube industry and has a huge market share of 55 to 60 percent. The company has more than 11 manufacturing plants across the country, with a total annual production capacity of 5 million metric tons (MMT). This huge size, strong distribution network and its strong hold in the market make it a safe and reliable bet for long-term investors.
There are some challenges ahead
Every big company faces some ups and downs in business and APL Apollo is also not untouched by this. According to the brokerage’s research report, at present the company is facing some difficulties on the demand front. Demand in the country’s infrastructure sector has slowed down and the cost of construction has increased. Additionally, dealers are clearing their old stock (de-stocking) due to fears of falling hot rolled coil (HRC) prices. At the same time, the ongoing tension in West Asia has also affected the functioning of the company’s plant in Dubai, due to which the pace of volume growth has slowed down a bit.
However, the management of the company is fully prepared to deal with these situations. To maintain profits, the management is now focusing on reducing costs and increasing sales of those special products (value-added products) which provide higher margins to the company. On the basis of these strong strategies, Motilal Oswal expects that the company’s revenue will grow at an impressive rate of 13 percent (CAGR) and net profit at an impressive rate of 18 percent between financial years 2026 to 2028.
Market cap of Rs 50 thousand crores
The market cap of APL Apollo Tubes is around Rs 50,000 crore, which shows its large scale. This share with a face value of Rs 2 is an important part of the BSE 200 index. However, its price has declined by about 10 percent in the last three months, which can become an attractive entry point in the market for new investors. Its highest level of 52 weeks has been Rs 2,300.90 and lowest level has been Rs 1,493. According to the data of March 2026, promoters hold 28.25 percent stake in the company.
Meanwhile, a big news related to the business restructuring of the company has also come. On June 27, APL Apollo informed the stock exchanges that its board has approved the sale of its entire stake in its wholly owned subsidiary ‘Blue Ocean Projects Private Limited’. This stake will be sold to ‘SG Realtor Private Limited’ (SG Realtor) for Rs 160 crore. The company aims to complete this deal by December 31, 2026. Since the promoters and their close associates hold more than 20 per cent stake in SG Realtor, it has been described as a ‘related party transaction’ in the exchange filing.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
