APL Apollo Tubes Ltd.
ISIN: INE702C01027 • Market Cap: ₹58,750 Cr
The 5-Pillar Quality Audit for APL Apollo Tubes Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (8.0%), Return on Capital Employed (20.7%), and equity compounding (18.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.15 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (12.3%) and 3Y PAT CAGR (24.2%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 47.80 vs PEG of 2.80 and Dividend Yield of 0.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 28.3%, backed by 53.7% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 20.7%)
APL Apollo Tubes Ltd. generates exceptional return on capital employed of 20.7%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 18.0%)
Shareholder equity compounds at a healthy 18.0%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.15)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
High-Velocity Profit Compounding (3Y PAT CAGR: 24.2%)
Net earnings have compounded at 24.2% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (53.7%)
Mutual funds, domestic DIIs, and foreign FIIs hold 53.7%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Capital Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Capital Goods space.
Quantitative Strategy Eligibility
Checking APLAPOLLO against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 70/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Capital Goods Sector Peer Comparison
Compare APLAPOLLO directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| APL Apollo Tubes Ltd. (APLAPOLLO)Current | 70/100 | ₹58,750 Cr | 47.80 | 20.7% | 0.15 | — |
| Hindustan Aeronautics Ltd. (HAL) | 70/100 | ₹3.35 Lakh Cr | 35.94 | 13.9% | 0.00 | View |
| Bharat Electronics Ltd. (BEL) | 80/100 | ₹2.99 Lakh Cr | 48.61 | 32.7% | 0.00 | View |
| Tata Motors Ltd. (TMCV) | 71/100 | ₹1.76 Lakh Cr | 42.02 | 31.3% | 0.38 | View |
| ABB India Ltd. (ABB) | 72/100 | ₹1.57 Lakh Cr | 52.48 | 28.7% | 0.00 | View |
| Hitachi Energy India Ltd. (POWERINDIA) | 76/100 | ₹1.50 Lakh Cr | 129.99 | 26.7% | 0.00 | View |
Frequently Asked Questions: APL Apollo Tubes Ltd.
Q:What is the 5-Pillar Fundamental Score for APL Apollo Tubes Ltd. (APLAPOLLO)?
APL Apollo Tubes Ltd. has a RupeeTools Fundamental Score of 70/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (70/100), Financial Health (81/100), Growth (79/100), Valuation (40/100), and Ownership Quality (72/100).
Q:Is APLAPOLLO fundamentally strong for long-term investment?
Yes, APLAPOLLO exhibits solid fundamental strength with a 70/100 score, driven by a return on equity of 18.0% and a debt-to-equity ratio of 0.15.
Q:Does APLAPOLLO pass the Coffee Can Investing filter?
Yes! APLAPOLLO satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does APLAPOLLO compare against other Capital Goods peers?
Within India's Capital Goods sector, APLAPOLLO trades at a P/E of 47.80 and generates an ROCE of 20.7%. Compare its 5-Pillar score of 70/100 against top sector peers like Hindustan Aeronautics Ltd. (70/100), Bharat Electronics Ltd. (80/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.