Here's why APL Apollo Tubes stock is up in trade today; buy, sell or hold?

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

APL Apollo Tubes share price today: APL Apollo Tubes shares were trading higher on Thursday i.e. November 20, 2025, with the scrip rising as much as 1.35 per cent to hit an intraday high of ₹1,745.25 per share.

 

At 9:40 AM, APL Apollo Tubes share price was trading 1.21 per cent higher at ₹1,742.90. At 9:40 AM, BSE Sensex was trading 0.21 per cent higher at 85,368.06 levels.

Nuvama on APL Apollo Tubes Stock: Buy, sell or hold?

 

Nuvama remains upbeat on APL Apollo Tubes after its recent interaction with the company’s top management, reiterating a ‘Buy’ rating on APL Apollo Tubes shares, with a target price of ₹2,093, valued at 36x Q2FY28E earnings per share (EPS). The brokerage noted that the stock currently trades at 33x/27x FY27E/28E earnings.

 

 

Management outlined strong expectations for Q3FY26, targeting sales volumes of 900,000 tonnes and Ebitda per tonne above ₹5,000. The company is focused on boosting absolute profitability, aiming for ₹450 crore in Ebitda for Q3FY26 and ₹1,700 crore for the full year. A key strategic lever is the SG Premium brand, which is being sold at a discount of over ₹5,000 per tonne to counter secondary steel (patra) competition and drive volume growth. While SG Premium is not margin-accretive, it is expected to scale to 10-15 per cent of total volumes, with the core APL-branded products continuing to lift overall profitability. The Dubai facility has seen utilisation rise to 80-85 per cent, further supporting margin expansion.  ALSO READ | Can the Sensex hit 90,000 by December 2025? What tech chart says 

Nuvama said APL Apollo remains well-positioned to navigate the recent dip in HRC prices. The company expects to offset potential inventory losses through higher utilisation, improved supplier discounts, pass-through of losses to distributors and the stronger profitability profile of its APL-branded products. Its shift toward value-added products continues to strengthen the margin mix, with VAP rising from 40 per cent in FY16 to 58 per cent in FY25. The Dubai plant, which delivered 145 kt in FY25 at Ebitda/tonne above ₹6,000, continues to be a major differentiator with major headroom for growth.

 

Capacity expansion is progressing smoothly, with plans to increase total capacity from 5 mtpa to 7 mtpa over the next two to three years at Gorakhpur, Siliguri and Dubai, eventually targeting 10 mtpa. 

 

The company’s strong competitive positioning, anchored in a wide product range, superior service levels, technological advantages and a vast distribution network of over 800 distributors and 200,000 retailers, continues to enhance its leadership. Its cash-and-carry model has brought working capital days to zero, further supporting growth and capex plans.  ALSO READ | VA Tech rises 3% on large order win from Nepal water supply board; details

About APL Apollo Tubes

 

APL Apollo Tubes, founded in 1986 and headquartered in the Delhi NCR region, is India’s largest manufacturer of structural steel tubes. 

 

With an annual production capacity of 4.3 million tonnes, the company operates a wide-reaching distribution network across domestic and international markets. Its broad product range spans structural steel tubes and hollow sections used across infrastructure, real estate, solar energy and automotive applications.