Trade Idea: Long-Term Investment Opportunity in Apollo Pipes LtdEntry Zone: ₹397–₹360
Stop Loss: Daily close below ₹310
Target: Long-term hold or book profits at ₹677
TradingView
Company Overview:
Apollo Pipes Ltd is a leading Indian manufacturer specializing in high-quality plastic piping solutions. The company's extensive product portfolio includes CPVC, UPVC, and PPR-C plumbing systems, HDPE pipes, fittings, and water storage solutions. With over 35 years of experience, Apollo Pipes operates multiple state-of-the-art manufacturing facilities across India, including locations in Dadri (Uttar Pradesh), Ahmedabad (Gujarat), Tumkur (Karnataka), and Raipur (Chhattisgarh), boasting a total production capacity of 136,000 MTPA. Groww
Financial Highlights:
Market Capitalization: Approximately ₹1,731 crore
Price-to-Earnings (P/E) Ratio (TTM): 58.49
Return on Equity (ROE): 8.75% over the past three years
Dividend Yield: 0.23%
Debt-to-Equity Ratio: 0.20
Investment Rationale:
Apollo Pipes Ltd has demonstrated consistent growth, supported by its diversified product range and robust distribution network. The company's strategic manufacturing locations enhance its ability to serve various regions efficiently. Despite a modest ROE and a relatively high P/E ratio, the company's low debt-to-equity ratio indicates prudent financial management. Investors may consider entering within the specified price range, setting a stop loss at a daily close below ₹310, and aiming for a long-term hold or booking profits at ₹677.
Disclaimer: This trade idea is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions.
