Nuvama remains upbeat on APL Apollo Tubes after its recent interaction with the company's top management, reiterating a 'Buy' rating with a target price of ₹2,093, valued at 36x Q2FY28E EPS
Analysts at Nuvama noted that APL Apollo launched its new 'SG Premium' product line at around ₹49,500 per tonne to counter competition from secondary steel players.
Around 9:30 AM, APL Apollo Tubes shares continued to trade lower, down 3.46 per cent at ₹1,630 per share. In comparison, BSE Sensex was trading 0.51 per cent lower at 81,764.21 levels.
As per the channel Check, APL's growth momentum is likely to remain, aided by customers shifting from refurbished steel to hot-rolled coil (HRC) structural steel tubes
Derivatives market data shows FIIs net sold 78,868 contracts of Nifty futures in first 4 trading days of Jan series while OI rose 74,992 contracts; thus implying build-up of short positions in Nifty.
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An analysis by IIFL Securities, shows APL Apollo could see inflows worth $195 mn from passive trackers, followed by Tata Motors ($134 mn) and Lodha ($128 mn)
The steel tube maker's consolidated profit rose 35% to Rs 203 crore in the second quarter, but missed analysts' average estimate of Rs 222 crore, according to LSEG data
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