On Thursday, October 24, Fidelity Funds India Focus Fund and Fidelity India Fund collectively purchased 1.01 million equity shares, representing 3.3 per cent stake, in Apollo Tricoat Tubes at Rs 280 per share, the BSE bulk deal data shows.
Individual shareholders, Reena Singhal, Saket Agrawal and Dinesh Pareekh sold 300,000 shares each, while Sonia Jyoti offloaded 200,000 shares of the company via bulk deals, data shows.
In past four years, the stock of Apollo Tricoat Tubes has zoomed nearly 31 times or 3,000 per cent from Rs 9.50 on October 26, 2015. In comparison, the S&P BSE Sensex has gained 43 per cent during the same period. Thus far in the current calendar year 2019, the stock has soared 120 per cent against an 8 per cent gain in the benchmark index.
Apollo Tricoat Tubes (formerly known as Best Steel Logistics), incorporated in 1983, became a part of Sudesh Group of Companies - India’s leading steel pipes and tube manufacturer in 2018. For the first time in India, Apollo Tricoat has introduced latest global technology, obtained from United States to manufacture steel pipes and tubes with triple-layer of protective coating, consisting of Paint, Zinc and Polymer coating.
Apollo Tricoat Tubes delivered strong volumes in September quarter (Q2FY20) at 27,529 MTPA, taking the total H1FY20 volumes to 39,185 MTPA. On a quarter-on-quarter (QoQ) basis, volumes improved by 167 per cent in Q2FY20.
The company clocked revenues of Rs 154 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) per ton during Q2FY20 stood at Rs 5,707 and margin at 10.2 per cent.
The management said the company is witnessing healthy demand for its niche product categories. Increasing contribution from the newly-launched products will not only help broaden the product mix, but will also boost sales momentum on a QoQ basis in the upcoming quarters.
Going forward, as the business gains momentum and manufacturing facilities are better utilised, the Company expects better absorption of overhead costs, leading to improved profitability performance.
In addition, the existing and upcoming product segments of Apollo Tricoat are higher margin value-added products, given their niche product applications in India. Thereby, increased portfolio of these value-added segments will further improve profitability and margins for the Company, going ahead, it added.