APL Apollo Tubes Ltd. was established in 1986 as Bihar Tubes Pvt. Ltd. and is a leading player of ERW (Electric Resistance Welded) Steel Tubes and Pipes in India with a 15% market share. The company has Pan-India presence with 7 manufacturing facilities spread across India. APL has three wholly owned subsidiaries. It has established a vast distribution network with 650 distributors, 40,000 retailers and 29 warehouses.

1. 1
RadhikaModi- Assistant Research Analyst (Radhika.modi@jainam.biz); 0261-6725518
Iron & Steel
02 Jan 2019
Investors are advised to refer through important disclosures made at the last page of the
Research Report.
Jainam Share Consultant research is available on www.jainam.in
Research Note |

2. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 2
Index
A. Company Overview
1. About…………………………………………………………………………..3
2. Investment Rationale………………………………………………………….4
3. Risk……………………………………………………………………………..6
B. Industry Overview
1. Domestic Steel Pipe Industry………………………………………………..10
2. Steel pipes market opportunity……………………………………..………11
3. Sectors………………………………………………………………………..12
C. Business of the Company
1. Products………………….………………………………………………………………………..………13
2. Product-wise Performance………………………………………………………………………..14
3. DFT Technology………………………………………………………………………………..……….15
4. Special Products………………………………………………………………………………………..16
5. Top Shareholders……………………………………………………………………………………...17
6. Management…………………………………………………………………………………………….17
D. Financial Outlook
1. Profit & Loss……………………………………………………….…………………………………….19
2. Cash Flow Statement…………………………………………………………………………………19
3. Balance Sheet……………………………………………………………………………………………20
4. Ratio…………………………………………………………………………………………………………21
E. Analysis
1. Peer Analysis………………………………………………………………….22
F. Conclusion
1. Recommendation……………………………………………………………..24
2. Sources………………………………………………………………………..25
3. Full Form & Glossary………………………………………………………….26
4. Report Gallery………………………………………………………………...27
5. Disclaimer……………………………………………………………………..28

3. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 3
Company Overview
About
Exchange: BSE BSE Code: 533758 Current Market Price: 1225.00 Date: 02-Jan-19
Latest Date 2nd January
Current Market Price(Rs) 1225.00
52 week high (Rs) 2,587.00
52 week low (Rs) 1,097.80
TTM EPS(Rs) 50.01
TTM P/E(x) 23.55
Price/BV(x) 2.93
EV/TTM EBITDA 11.64
Dividend Yield(%) 1.19
Current Book Value(Rs.) 401.36
Market Cap (Rs in Crs) 2,906.90
RoE (%) 20.56
RoCE (%) 22.41
DEBT/EQUITY (x) 0.93
No. of shares (in cr.) 2.37
APL Apollo Tubes Ltd.
APL Apollo Tubes Ltd. was established in 1986
as Bihar Tubes Pvt. Ltd. and is a leading player
of ERW (Electric Resistance Welded) Steel
Tubes and Pipes in India with a 15% market
share. The company has Pan-India presence
with 7 manufacturing facilities spread across
India. The capacity expansion and Pan-India
presence has been a result of both organic
and inorganic growth; APL has three wholly
owned subsidiaries:
 Apollo Metalex Pvt. Ltd. – Acquired in
2007 as a measure of backward
integration.
 Shri Lakshmi Metal Udyog Ltd. – Acquired
in 2008 for penetrating in South India
 Blue Ocean Projects Private Limited
Lloyds Line Pipes Ltd. which was acquired in
2010 as a wholly owned subsidiary to extend
footprint to West India has been
amalgamated with Apl Apollo Tubes Ltd.
It has been a pioneer in bringing advanced
global technologies to India and has also
successfully penetrated into manufacturing
niche steel products (window and door
frames) apart from its pipes and tubes
portfolio. APL has also, over the years
established a vast distribution network with
650 distributors, 40,000 retailers and 29
warehouses cum branches that give a country
wide presence to its portfolio of over 400
products. It also exports to over 35 countries
worldwide.
Source : Trendlyne

4. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 4
Investment Rationale
 DFT Technology : Direct Forming Technology (DFT) is a latest technology pioneered by
APL Apollo Tubes ltd. It is used for making Hollow sections of superior quality and finish.
This technology, unlike conventional technologies, can form rectangular and square hollow
sections of different sizes and thickness directly, thus translating into huge cost-savings and
better productivity at both the Customer and Company level.
 Acquisition of High margin product :
APL Apollo is acquiring stake in Apollo Tricoat Ltd which manufactures Tricoat Tubes. This
product is made through latest galvent technology and it has tri-layer of protective
coating - paint, zinc and UV organic coating. It is eco friendly product which I widely used
for electric conduits and appliances and green houses. It is a high margin product and it will
help APL Apollo to strengthen its position in global steel tubes company.
 GST :
With 60% of the market being unorganized, GST hailed as India's biggest and most notable
tax reform has opened up new opportunities for APL. The advantage APL could capitalize
upon is the shift of business from unorganized to organized segment. This works well for
further strengthening its leadership positioning in the Indian Steel Tubes and Pipes
segment. APL Apollo has close to 15% market share which could increase going ahead in our
opinion owing to GST.
Source : Investor Presentation

5. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 5
 Strong Distribution Network :
Company has very strong distribution network to supply to the customers. 92% of the
revenue comes from distributors/dealers and the rest comes from OEM (2%) and export
(6%). Company is planning to increase the OEM to 10% and export to 15% in next 3 years.
 Pan-India Footprint and Capacity Expansion :
Particulars 2011 2012 2013 2014 2015 2016 2017 2018
No. of
distributors
175 200 275 300 375 600 625 650
Warehouses 5 15 19 26 26 26 27 29
Zone Plant Location
Capacity
(TPA)
DFT
Total
Capacity
(TPA)
North Unit 1 Sikandarabad, UP 2,50,000 1,25,000 3,75,000
Apollo Metalex Sikandarabad, UP 2,25,000 2,25,000
East Unit 3 Raipur, Chhatisgarh 2,00,000 1,25,000 3,25,000
West Llyod Lines Pipes Murbad, Maharashtra 3,50,000 1,25,000 4,75,000
South Unit 2 Hosur, Tamil Nadu 3,50,000 1,25,000 4,75,000
SLMUL Bengaluru, Karnataka 1,25,000 - 1,25,000
Total 15,00,000 5,00,000 20,00,000
Source : Annual Report

6. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 6
Risks
 Volatility in Steel prices: As the raw material cost (majorly HRC and Zinc) forms 85% of
total sales, product demand and margins are directly affected due to volatility in steel prices.
Increase in prices may affect demand as consumers can alternate their purchases whereas
sharp decline in steel prices may lead to inventory loss. At times, the company may have to
bear cost burden as price hikes could decrease the product demand due to intense
competition and fragmented nature of industry. Further, RM price volatility could lead to
pressure on its operating margins and thereby profitability. However, owing to GST
implementation, the possibility of intense competition from unorganized players could
drastically reduce thus allowing APL Apollo to enjoy a good relationship with customers.
 Borrowings: The company is continuously increasing the borrowings which can be a point
of concern for the investors.
 Replacement Market: There is a shift from galvanized pipes to PVC pipes. PVC tubes are
increasingly being used in agriculture, infrastructure, construction, and sewage sectors as a
replacement for galvanized pipes. They are less costly and light-weighted. It does not
require much man-power and is easy to install. This could negatively impact the company's
growth prospects.
 Capital Allocation : Apl Apollo ltd., through its wholly owned subsidiary Shree Udyod Ltd.
is acquiring stake in Rahul Gupta’s (son of Sanjay Gupta - Executive chairman of APL Apollo
Tubes Ltd.) company which is Apollo Tricoat Tubes Ltd. (earlier called ‘Best Steel Logistics’).
Source : Screener.in

7. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 7
* 80,30,030 shares = 8,30,030 shares + 72,00,000 shares
Shree Udyod Ltd acquired 40.43% stake (8030030 shares + 4300000 convertible warrants) of
Rahul Gupta through share purchase agreement and also made an open offer of 26% to Apollo
Tricoat Tubes to acquire majority stake in this company. If the open offer is fully subscribed then
total stake of APL Apollo in Apollo Tricoat Tubes will be of 66.43%.
No. of shares Price at which APL Apollo is acquiring stake (Rs.) Total Amount
80,30,030 120 96,36,03,600
43,00,000 30* 12,90,00,000
79,30,000 135 1,07,05,50,000
216,31,53,600
*1/5th
of the total price is paid at the time of subscription of warrants and the rest 4/5th
is paid
when the warrants are converted into equity shares.
So, Apl Apollo will be acquiring 66.43% stake in Apollo Tricoat Tubes at 216.31536 cr.
Apollo Tricoat tubes ltd.
No. of shares as on 31st dec-17 1,85,00,000
New Preference Allotment to Rahul Gupta 72,00,000
Convertible warrants issued to Rahul Gupta +
non-promoters
48,00,000 (43,00,000 + 5,00,000)
No. of shares as on 31st mar-18
2,57,00,000 (1,85,00,000 +
72,00,000)
Total number of shares after whole dilution (To be)
3,05,00,000 (2,57,00,000 +
48,00,000)
Rahul Gupta
Shares held by him
New Preference
Allotment
Warrant Total Shares
8,30,030 72,00,000 43,00,000 1,23,30,030
Current stake of Rahul Gupta on fully paid up equity share capital 31.25% - 80,30,030 shares*
Total stake of Rahul Gupta (including warrants) on diluted capital 40.43% - 1,23,30,030 shares
Open offer made by Shree Udyog Ltd. 26.00% - 79,30,000 shares

8. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 8
*Because of the dilution the P/E will increase to 96.65.
 Apl Apollo Tubes Ltd. is also diluting the shares to fund the acquisition. The company is
issuing 4,00,000 equity shares and 5,00,000 convertible warrants to the promoters.
Apollo Tricoat
Pre-dilution Post Dilution
Change in
Eps (%)
PAT (2018) (cr.) 6.98 6.98
No. shares 2.57 3.05
EPS (Rs.) 2.72 2.29 -15.81%
TTM PAT (cr.) 4.26 4.26
No. shares 2.57 3.05
EPS (Rs.) 1.66 1.40 -15.74%
Pre-dilution Post-dilution
Current Price (Rs.) 135 135
Eps (Rs.) 1.66 1.40
P/E (x) 81.44 96.65*
Apl Apollo Tubes ltd.
Current No. of shares (cr.) Equity Infusion(cr.) Total number of shares after dilution(cr.)
2.373 0.09 2.463
APL apollo
Apollo
Tricoat
66.43%
stake
Total offer P/E
TTM PAT (cr.) 154.11 4.26 2.83 216.31536 76.44
No.of shares after dilution 2.463 3.05
EPS after dilution (Rs.) 62.57 1.40
TTM Sales (cr.) 5,979.23 42.99 28.56 216.31536 7.57

9. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 9
 Post acquisition the EPS of APL Apollo Tubes Ltd. will be only Rs. 63.97 cr. (62.57 + 1.40).
 APL Apollo is acquiring 66.43% stake in Apollo Tricoat, therefore the PAT and Sales is
considered accordingly.
 According to this, APL Apollo will be acquiring Apollo Tricoat Tubes on 76.44 times higher
valuation when calculated through PAT and on 7.57 times higher valuation when calculated
through Sales.

10. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 10
Industry Overview
Domestic Steel Pipe and Tubes Industry Structure
Steel pipes and tube manufacturing are among the fastest growing industries across the globe.
India is among the leading ERW steel tubes manufacturing hubs in the world with domestic
demand levels of 10MTPA. Other countries manufacturing steel pipes and tubes include China,
Turkey, Italy and US. Demand is led by increased infrastructure construction, automobile and
energy sectors. Domestic ERW pipe industry to grow at 10-12% CAGR through FY19 and the
current market size is estimated at 30000 cr..
Seamless
Steel Tubes & Tubes Industry
Ductile Iron
Potable Water
& Sewage
Transportation
Oil & Gas,
Engineering,
Automotive
and Power
Key Players
Electrosteel,
Jindal SAW,
others
Key Players
ISMT,
Maharashtra
Seamless,
Jindal SAW
Welded
SAW (HSAW
& LSAW)
Oil & Gas,
Water and
sewage spiral -
long distance
O&G and
water
transportation
Key Players
Jindal SAW, PSL,
Welspun Corp,
Man Industries,
Ratnaman
ERW Precision
(DOM)
Automotive,
White goods
Key Players
TI, Tata Steel,
Innoventive
ERW (Structural/
Commerical)
Traditional: New Age:
Engineering, Auto, Power,
Oil & Gas (Last mile, City
gas distribution), Water
and sewage Modern
infrastructure - airport,
malls, metros, bus body,
greenhouse structures,
sprinklers, prefabricated
structure, etc
Key Players
APL Apollo, Surya Roshni,
Maharashtra Seamless,
Tata Steel, Welspun Corp,
Bhushan Steels

11. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
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Steel pipes market opportunity
 Steel Pipe consumption is directly linked to the country’s GDP growth
 Steel demand expected to grow at 6-8% through FY21
 Pipe demand will form 10-12% of the total steel demand, thereby providing a huge
opportunity for steel pipe consumption
Steel
Consumption
Pipe
consumption
Pipe
consumption
as a % of steel
Per Capita
Consumption
Mn ton Mn ton % Steel Kg Pipe Kg
Global 1573 156 10% 208 21
China 800 80 10% 568 57
India 105 10 10% 75 6
Rest of the
World
673 68 10% 140 14
Global Steel Pipes Consumption (156 mn tonnes)
Indian Steel Pipes Consumption (10 mn tonnes)
Global Steel Consumption (1,573 mn tonnes)

12. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 12
Sectors
Growth Potential
 Strong Government impetus. increasing purchasing power. imp roving lifestyle dynamics. etc
provide a boost to all key sectors of the Indian economy.
 With enormous untapped potential across all major sectors and new age applications. APL
Apollo's business model is well-positioned to capitalize on all emerging sectoral trends
Source : Investor Presentation

13. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 13
Products
Applications:
Urban Infra,
Automotive,
Preengineered
buildings
Applications:
Liquid & Power
Transmission,
Scaffolding, Fire
fighting
Applications:
Over & Under
Ground piping,
Scaffolding,
Refineries
Applications:
Automotive (bus
body), Cabling &
Ducting, Green
house structures

14. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 14
Product-wise Performance
Source : Investor Presentation
Source : Investor Presentation
Source : Investor Presentation
Source : Investor Presentation

15. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 15
DFT Technology
DFT is the latest global technology for making hollow sections of superior quality which reduces
rollover time significantly.DFT would however alleviate the need to do this and help them form
square and rectangular pipes directly. This would bring along a number of benefits and
opportunities:
a) 3-10% Savings on RM: DFT would eliminate the wastage which earlier used to gather at the
edges when round pipes were converted into square or rectangular pipes. Savings in the range of
3-10% on RM costs are expected on the back of this.
b) Customized/Small orders to drive market share gains: Introduction of DFT would enable APL
to produce pipes in smaller batches, as low as 10-20MT against the traditional requirement of
having to process 400-550MT before making any changes. Thus, the ability to accept small orders
in customized sizes would enable it to serve a larger part of the market. Besides, customization
will also allow APL Apollo Tubes to be the first to offer its customers the size which just meets
their requirement. Testimony to this customization is the introduction of 300x300mmsize in India
for the first time in India and being the sole producer of the same. Having received encouraging
response to customized sizes, the company has already developed 12 new sizes which APL shall
leverage upon going forward.
c) Entry into new industries: The management expects to make inroads into new industries such
as Truck & Bus Body, Agricultural Implements, Gym/Sports Equipment, Solar Tracking systems etc.
led by the acceptance of the superior quality products as a result of the new technology.
d) Export opportunities: Export markets of Europe, Japan and USA hold strong potential as DFT
products are well accepted in these advanced economies. The management is betting on DFT to
be a key catalyst in ramping
Source : Annual Report

16. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 16
Special Products
Source : APL Apollo website
New Patented Design

17. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 17
Top Shareholders
Management
Name of Share holders No of shares Percentage
Kitara PIIN 1001 3000000 12.64
IDFC Premier Equity Fund 867063 3.65
HDFC Trustee Company Limited - HDFC Prudence 672703 2.83
DSP Blackrock Small Cap Fund 982098 4.14
Emblem FII# 239004 1.01
Sameer Mahendra Sampat 558500 2.35
Suresh Kumar Agarwal 400,000 1.69
Ashish Kacholia 400,000 1.69
Kitara PIIN 1101 852,000 3.59
Goldman Sachs India Limited 626,434 2.64
Kotak Emerging Equity Scheme* 337,094 1.42
Name Designation About
Mr. Sanjay Gupta Executive Chairman
 Founder & Promoter of APL
Apollo Tubes since inception.
 Has a diverse experience across
the steel industry segments of
over 20 years.
 Instrumental in driving APL
towards the growth path.
 He spearheads the company in
strategic road map and
formulating business plans
Mr. Ashok Gupta Managing Director
 A steel industry veteran with
over 30 years of experience in
the industry.
 He has worked in various senior
managerial positions at
companies like SAIL, Bhushan
Steel, LN Mittal (African
Continent), Jindal etc.
 A Master's in Science (Physics)
and masters in management

18. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 18
from AIMA
Mr. Vinay Gupta Director
 He has over 18 years of
experience in exports and
international market.
 He possesses in-depth
knowledge of manufacturing
and trading pipes, tubes, sheets
and other steel products.
 He has been specifically
assigned with the development
of pre-galvanized business
Mr. Deepak Goyal Chief Financial Officer
 Chartered Accountant by
profession, he has been a CFO
of the company since February
2015 prior to which he was the
General Manager Accounts

19. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 19
Financial Outlook
Profit and Loss Statement
Cash Flow
Particulars FY16 FY17 FY18
Income from operations 4154.23 4,377.65 5,472.38
Total Expenses 3971.20 4044.68 5101.34
Operating Profit 182.03 332.97 371.04
Operating Profit Margin 4.38% 7.60% 6.78%
Other Income -15.03 5.97 8.01
Depreciation 34.10 50.90 53.41
Interest 69.51 72.03 81.30
Profit Before Tax (PBT) 162.98 216.01 244.34
PBT Margin 15.04% 9.62% 10.75%
Tax 62.42 63.90 86.21
Net Profit 100.56 152.11 158.13
Net Profit Margin 10.25% 6.23% 6.96%
EPS 40.90 64.48 66.64
Metric/Figures (cr) 2016 2017 2018
Cash Flow from Operating Activity 11.30 315.35 91.37
Cash Flow from Investing Activity -92.68 -169.70 -165.37
Cash Flow from Financing Activity 80.88 -145.43 79.23
Net Cash Flow -0.50 0.22 5.23

20. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 20
Balance Sheet
Metric/Figures (cr.) 2016 2017 2018
Cash & Cash Equivalents 1.02 1.39 6.62
Debtors 218.17 294.87 432.13
Inventory 594.36 469.61 591.49
Loans & Advances 1.38 0.77 1.16
Investments - 0.44 1.11
Fixed Assets 598.89 630.84 848.66
Other Assets 213.21 446.66 299.91
Total Assets 1627.03 1844.58 2181.08
Share Capital 23.44 23.59 23.73
Total Reserve 545.62 679.77 814.12
Total Networth 569.06 703.36 837.85
Current Liabilities & Provision 309.1 430.12 408.42
Debt 669.56 618.52 798.69
Other Liabilities 79.3 92.58 136.12
Total Liabilities 1627.03 1844.58 2181.08

21. Jainam share Consultant Pvt Ltd. Sector : Iron & Steel
02-01-2019 21
Ratio Analysis
Performance Ratios 2014 2015 2016 2017 2018
RoA % 5.49 5.07 6.50 8.18 7.36
RoE % 15.29 14.21 19.41 24.03 20.67
RoCE % 17.38 17.42 21.29 22.90 22.38
Efficiency Ratios 2014 2015 2016 2017 2018
Receivable Days 30.66 22.26 15.50 21.47 24.24
Inventory Days 37.72 31.87 35.82 44.36 35.39
Payable Days 16.97 20.22 21.14 32.85 27.92
Cash Conversion Cycle 51.41 34.51 30.18 32.98 31.79
Financial Stability Ratios 2014 2015 2016 2017 2018
Total debt/equity (x) 1.22 1.00 1.15 0.85 0.93
Current Ratio (x) 1.18 0.99 1.09 0.98 1.01
Interest Ratio (x) 2.46 2.47 3.34 4.00 4.01
Cash Flow Ratios 2014 2015 2016 2017 2018
Cash flow per Share 56.62 134.30 4.82 133.68 38.50
Price to Cash flow 3.50 2.99 137.89 8.75 51.80
Free Cash flow per share -26.27 16.43 -95.75 102.63 -7.53
Price to Free cash flow -7.54 24.42 -6.94 11.40 -264.71
Sales to Cash flow 18.82 9.97 372.88 12.44 58.39
Valuation Ratios 2014 2015 2016 2017 2018
EPS (x) 25.16 27.20 42.91 64.48 66.64
P/E (x) 7.87 14.76 15.49 18.15 29.93
P/BV (x) 1.12 1.95 2.75 3.95 5.69
EV/EBITDA (x) 5.76 7.54 7.56 9.89 14.51
Du-Pont ratios 2014 2015 2016 2017 2018
RoE (%) 15.29 14.21 19.14 24.03 20.67
PATM (%) 3.56 3.11 3.87 5.50 4.58
Sales/Total Assets (x) 624.10 549.47 679.68 622.01 628.61
Assets to Equity (x) 117.13 124.06 146.39 141.87 140.64

22. Jainam Share Consultant Pvt Ltd Sector : Iron & Steel
02-01-2019 22
ANALYSIS
Peer Analysis
Particulars APL Apollo Surya Roshni
Maharashtra
Seamless
Plant
Sikandrabad (3),
Raipur, Murbad,
Hosur, Bengaluru
Bahadurgarh
(Haryana),
Malanpur, Gwalior
(M.P.), Hindupur
(A.P.), Anjar, Kutchh
(Gujarat)
Raigad, Maharashtra
(2)
Products
ERW Steel Pipes
(MS Black,
Galvanized Iron
(GI),
Pre-Galvanized
(GP), Hollow
Sections)
ERW Steel Pipes (GI,
Black and Hollow
Section), API &
Welded Spiral, 3LPE
Coated Pipes, Cold
rolled strips and
sheets
Seamless Pipes, ERW
Pipes, Solar Power
Capacity 17,50,000 MTPA
9,00,000 MT ERW
pipes includes
2,50,000 MT GI
pipes
-
Segment Revenue
100% revenue
from ERW Steel
Pipes
Steel Pipes and
Strips - 72%,
Lightning &
Consumer durables
- 28%
Steel Pipes & Tubes -
95.79%
Product wise Revenue
Hollow Sections -
51%, Black round
- 15%, GP - 24%,
GI -11%
GI - 35%, Black
Round - 13%,
Structural Pipes -
27%, CR Sheets -
14%, API & Spiral -
11%
-

23. Jainam Share Consultant Pvt Ltd Sector : Iron & Steel
02-01-2019 23
CCC 39.88 79.15 141.91
Market Share 15% - -
TTM Revenue (cr.) 6201 5404 2505
Market Cap (cr.) 2870.24 1,272.08 3,470.24
ROE(%) 20.56 10.82 6.86
ROCE(%) 22.41 12.55 10.28
Promoter Holding (%) 37.25% 62.90% 61.78%
TTM PAT (Cr.) 154.11 113.71 316.03
PATM(%) 2.49 2.10 12.61
CFO (Cr.) 91.37 155.22 90.02
FCF(Cr) -81.31 88.60 -19.69
D/E (x) 0.93 1.05 0.01
EPS(Rs) 65.40 20.90 47.18

24. Jainam Share Consultant Pvt Ltd Sector : Iron & Steel
02-01-2019 24
Conclusion
Recommendation
APL Apollo Tubes Ltd. is having a strong distribution network of 650+ distributors, 40,000
retailers and 29 warehouses cum branches. DFT Technology will help the company in
cost-optimization and also increase the efficiency of the company.
The management is focusing on brand and high margin products but the company is acquiring
stake in Apollo Tricoat Tubes ltd. at higher valuation which can be a big concern for the
company. APL Apollo Tubes Ltd. And Apollo Tricoat Ltd. Is having equity dilution which can
effect minority shareholders. The volatility in steel prices (which forms 85% part of the raw
material) can impact the profitability of the company. Also, the company is increasing its
borrowings which again is a concern. People shifting towards PVC pipes from galvanized pipes
can be a threat for the industry. GST implementation can be beneficial for the company as this
industry is highly dominated by unorganized players (60%).
The company is increasing its production capacity and also expanding its Pan-India presence
which will help the company to reach to its customers. Also, the company is trying to increase
its exports and OEM’S in the coming years.
We are ‘neutral’ on this stock.
.

25. Jainam Share Consultant Pvt Ltd Sector : Iron & Steel
02-01-2019 25
Sources
 Annual Report
 APL Apollo Tubes ltd. Website
 Investor Presentation
 Conference Call
 BSE website
 Web based Software – Ace Analyser
 Screener.in
Research Analyst Details
Name Designation Email Id
Tejas Jariwala Research Head tejas.jariwala@jainam.in
Jimit Zaveri Sr. Research Analyst jimit.zaveri@jainam.biz
Vaishali Patel Sr. Research Analyst vaishalip.patel@jainam.biz
Karan Agarwal Assistant Research Analyst karan.agarwal@jainam.biz
Vandana Pareek Assistant Research Analyst vandana.pareek@jainam.biz
Riva Patel Assistant Research Analyst riva.patel@jainam.biz
Radhika Modi Assistant Research Analyst radhika.modi@jainam.biz
Shahrukh Nalbandh Sr. Research Executive shahrukh.nalbandh@jainam.biz
Drashti Patel Jr. Research Executive drashti.patel@jainam.biz
Dhruvish Bakshi Jr. Research Executive dhruvish.bakshi@jainam.biz

26. Jainam Share Consultant Pvt Ltd Sector : Iron & Steel
02-01-2019 26
Full Form & Glossary
Abbreviation Full Form
BV Book Value
CAGR Compound Annual Growth Rate
CAPEX Capital Expenditure
COGS Cost of Goods Sold
DPS Dividend Per Share
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, tax, depreciation and amortization
EPS Earning Per Share
EV Enterprise Value
FY Financial Year
GP Gross Profit
HY Half Year
MCap Market capitalization
NAV Net Asset Value
NII Net Interest Income
NOI Net Operating Income
NOPAT Net Operating Profit after Tax
NPV Net Present Value
OCF Operating Cash Flow
OI Operating Income
P&L Profit & Loss
P/E Price/Earnings Ratio
PAT Profit After Tax
PATM Profit After Tax Margin
PBT Profit Before Tax
QOQ Quarter on Quarter
RE Retained Earning
ROA Return on Assets
ROCE Return on Capital Employed
ROE Return on Equity
ROI Return on Investment
ROIC Return on Invested Capital
RONA Return on Net Asset
TTM Trailing Twelve Month
WC Weighted Average Cost of Capital
YOY Year over Year

27. Jainam Share Consultant Pvt Ltd Sector : Iron & Steel
02-01-2019 27
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28. Jainam Share Consultant Pvt Ltd Sector : Iron & Steel
02-01-2019 28
Disclaimer
Research Analyst Details
Name: Radhika Modi Email Id: radhika.modi@jainam.biz Ph: +91 0261-6725518
Analyst ownership of the stock: No
Details of Associates: Not Applicable
Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their)
personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or
will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.
Disclaimer: www.jainam.in is the domain owned by Jainam Share Consultants Pvt. Ltd.
SEBI (Research Analyst) Regulations 2014, Registration No. INH000006448
The views expressed are based solely on information available publicly and believed to be true. Investors are advised
to independently evaluate the market conditions/risks involved before making any investment decision.
This report is for the personal information of the authorized recipient and does not construe to be any investment,
legal or taxation advice to you. This report should not be reproduced to any other person in any form. This document
is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment
decision. Jainam Share Consultants Pvt. Ltd. or any of its affiliates or employees shall not be in any way responsible for
any loss or damage that may arise to any person from any inadvertent error in the information contained in this
report. Neither Jainam Share Consultants Pvt. Ltd., nor its employees, agents nor representatives shall be liable for
any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that
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pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular
purpose, and non-infringement.
The recipients of this report should rely on their own investigations. Jainam Share Consultants Pvt. Ltd. and/or its
affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this
report. Jainam Share Consultants Pvt. Ltd. has incorporated adequate disclosures in this document. This should,
however, not be treated as endorsement of the views expressed in the report. We submit that no material disciplinary
action has been taken on Jainam Share Consultants Pvt. Ltd. by any regulatory authority impacting Equity Research
Analysis.