From Rs 480 to Rs 1,875, this multibagger stock has gained over 250% in one year

Multibagger Stock: APL Apollo Tubes is India’s leading structural steel tube manufacturer with a capacity of 2.6 million tonnes per annum (MTPA) and pan-India presence. Shares of APL Apollo Tubes have outperformed by delivering multibagger returns as the stock has gained over 250% in one year and has gained over 115% in 2021 (Y-o-date). From trading above Rs 480 per share level in September 2020, Multibagger stock level has risen to Rs 1,875 currently.

HDFC Securities said its market share grew from 27% in FY16 to 50% in FY21, led by strong distribution network, branding, customized and innovative product offerings and capacity addition.

What about a brokerage firm?
In a note, the brokerage firm said that by having 50% market share, adopting latest technologies and maintaining a strong brand image, APL is well ahead of its competitors. “Using advanced technology, it has managed to offer customized products in a much shorter span of time than its competitors, which puts it well ahead of them; We are confident that this will continue in the future as well.”

HDFC Securities has initiated coverage on the stock with ‘Buy’ rating and has a target price of ₹2,226 per share. HDFC Securities expects APL’s revenue, net profit to grow at CAGRs 20%/34% in FY21-24E on account of healthy volume growth, margin expansion, reduction in working capital and reduction in debt.

Disclaimer: (The information provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. Anyone from ABPLive.com Also investing money is never advised here.)

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