Shares of this steel stock under the mid-cap category jumped up to 2 percent in Thursday’s trading session after Foreign Institutional Investor (FII) bought 27.89 lakh equity shares of the company via a Bulk Deal. In the past year, the company’s stock gained nearly 30 percent for its holders.
With a market capitalization of Rs 41,546.81 crores, the stocks of APL Apollo Tubes Limited opened their trading hour on Thursday at Rs 1,481.05 and currently trade at Rs 1,497.05. The company’s scrip witnessed an intra-day high price of Rs 1,522.55 exhibiting a gain of approximately 2 percent compared to the previous close of Rs 1,490.40 apiece.
Such bullish share price movements were observed after a Foreign Institutional Investor (FII) bought a stake in the company on March 13th, 2024. As per the Bulk Deal data available with the National Stock Exchange (NSE), ‘New World Fund Inc’, an FII party, bought 27.89 lakh equity shares of the company at an average trading price of Rs 1,601.10 per share.
New World Fund Inc. has a flexible approach towards the ‘developing’ markets seeking exposure by investing in companies as well as multinational companies in the emerging markets.
On the other end, ‘Principal Global Investors Collective Investment Trust’ sold 15.31 lakh equity shares of the company at an average trading price of Rs 1,600.16 per equity share.
During the recent financial quarters, the company’s prime indicators of business, viz, its operating revenues as well as after-tax profit numbers, showed underperformance with the former slipping from Rs 4,630 crores during Q2FY24 to Rs 4,178 crores during Q3FY24, and the latter, keeping the timeframe the same, reducing from Rs 203 crores to Rs 166 crores.
As per the recent presentations, the company reported robust export sales performance, reporting a growth of around 60 percent on a YoY basis. Moreover, the company focuses on new products and overseas markets, targeting the US, Europe, Canada, and the Middle East
In addition to the above, the company expects a structural shift in the ‘upstream steel’ sector and is confident in reaching “5 million” tons of sales volume by FY26. The company is also committed to becoming debt-free by FY25 and aims to focus on the internal utilization of cash.
APL Apollo Tubes Limited is an India-based tube and steel pipe manufacturer operating in a sole segment, viz, production of ERW steel tubes. Its product portfolio comprises galvanized tubes, MS black pipes, and hollow sections used for household structural applications, solar plants, agriculture structures, engineering, and greenhouses.
Written by Amit Madnani
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