On September 3, Apollo Pipes saw a notable 10% surge, with its stock price climbing to Rs 665 amid strong trading volumes. Approximately 1.6 million equity shares changed hands on the NSE and BSE during intra-day trading, far surpassing the one-week average of 0.1 million shares.
Earlier this year, Apollo Pipes had reached a 52-week high of Rs 798 per share on February 9, 2024. However, year-to-date, the stock has underperformed, lagging by 4%, while the benchmark Nifty 50 has risen by 16% in the same period.
Company Overview
Apollo Pipes specializes in products for the plumbing, sanitation, water supply, infrastructure, and agriculture sectors. The company operates five state-of-the-art manufacturing facilities with a combined capacity of 156,000 MTPA, offering a diverse portfolio of over 1,600 high-quality products. These include CPVC, UPVC, and HDPE pipes and fittings, bathroom products, water tanks, and solvents.
Growth Projections
In its annual report, Apollo Pipes' management expressed ambitions to increase volumes from 35,000 tons in FY25 to 55,000 tons over the next 2-3 years. The company plans to achieve this by adding capacity, funded through operational cash flows.
Additionally, Apollo Pipes intends to commission a new plant, introduce two new product lines, and enhance capacity at existing facilities.
Financial Performance
In the recently concluded June quarter, Apollo Pipes reported revenues of Rs 240 crore, down from Rs 260 crore in the same period last year. Net profit also declined to Rs 10 crore in Q1FY25, compared to Rs 13 crore in the year-ago quarter.
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