Rs 124 to Rs 1043: This steel pipe manufacturing company delivered 737% returns in the last two years!

An investment of Rs 1 lakh in this stock last year would have turned to Rs 8.37 lakh today.

APL Apollo Tubes Ltd, an S&P BSE 500 company, has delivered multibagger returns to its shareholders in the last 1 year. During this period, the company’s share price jumped from Rs 124.59 on 28 April 2020 to Rs 1043 on 26 April 2022, an increase of 737% over the last two years. An investment of Rs 1 lakh in this stock last year would have turned to Rs 8.37 lakh today.

These returns are 8 times the returns delivered by the S&P BSE 500 index, of which the index is a part. In the last 2 years, the index has climbed from the level of 12,374.8 on 28 April 2020 to 23,729 on 26 April 2022, a rally of 91.75% over the two years.

The company is the largest producer of Electric Resistance Welded (ERW) Steel Pipes and Sections in the country. It has a strong foothold in the international markets with exports to over 20 countries across the globe. The company’s multi-product offerings include over 1,100 varieties of PreGalvanized Tubes, Structural ERW Steel Tubes, Galvanized Tubes, MS Black Pipes and Hollow Sections.

In the recent quarter Q3FY22, on a consolidated basis, the company’s topline increased by 24.95% YoY to Rs 3123.94 crore. However, the bottom line decreased by 14% YoY to Rs 127.88 crore.

The company is currently trading at a TTM PE of 50.88x, as against the industry PE of 6.49x. In FY21, the company delivered an ROE & ROCE of 11.34% and 13.77% respectively.

At 11.55 am, the shares of APL Apollo Tubes Ltd were trading at Rs 1019.05, a decrease of 2.30% from the previous day’s closing price of Rs 1043 on BSE. The stock has a 52-week high & low of Rs 1,113.65 and Rs 589 respectively on BSE.

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