APL Apollo Target Hiked to ₹2,269 by Antique on Record Sales

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Overview

Antique Stock Broking raised APL Apollo Tubes' target price to ₹2,269 from ₹2,023, maintaining a 'Buy' rating. The upgrade follows record quarterly sales volumes of 916,976 tonnes and an 11% year-on-year increase in nine-month sales. Analysts cited strong volume growth, improving product mix, and capacity expansion prospects despite steel price volatility.

Analyst Upgrade Drives Outlook

APL Apollo Tubes' stock received a significant boost from analyst firm Antique Stock Broking, which raised its price target to ₹2,269 from ₹2,023. This upgrade follows the company's declaration of its highest-ever quarterly sales volume in the December quarter. Antique maintained its 'Buy' rating on the iron and steel products maker.

Record Volumes Fuel Growth

The company reported sales volumes of 916,976 tonnes for the December quarter, surpassing previous figures. For the nine months ended December 2025, sales volume climbed to 2,566,363 tonnes, marking an 11% year-on-year increase. Antique highlighted strong volume growth as a key driver for its optimistic outlook.

Capacity Expansion and Product Mix

Analysts also cited an improving product mix, with value-added products rising to 59% in H1FY26, and robust capacity expansion plans as factors supporting the upgrade. The company plans to expand installed capacity from 4.5 million tonnes per annum to 6.8 million tonnes per annum by FY27-28. Management has guided for 10-15% volume growth in FY25-26.

Market Dynamics and Performance

Despite near-term steel price volatility, Antique believes APL Apollo is well-positioned. The narrowing premium of primary over secondary pipes is also expected to support demand. The stock has demonstrated strong performance, climbing 26% over the past 12 months, significantly outperforming the Nifty 50's 10% advance.

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