Apollo Pipes limited Stock Research

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Apollo Pipes limited Detail

Apollo Pipes limited is in portfolio of Mukul Agarwal. He is one of the top investors in India. The company belongs to Pipes sector.

As per the Company website it is among the market leader in piping and related products segment under brand name of APL Apollo. It owns the largest company owned /operated network of Warehouses-sum-Sales offices across the country.

Below are the different product categories from the Company

  • Plumbing pipes and fittings
    • CPVC pipes and fittings
    • uPVC pipes and fittings (threaded and non threaded)
    • SWR pipes and fittings
    • Sewerage pipes
  • Irrigation pipes and fittings
    • HDPE pipes
    • Sprinkler system
  • Agricultural pipes and fittings
    • uPVC pressure pipes and fittings
    • uPVC column pipes
    • uPVC well casing pipes
  • Solvent Cement
  • Faucets, Showers and Allied

The now has annual manufacturing capability of approx. 5000 MT of uuPVC pipes 4000 MT of HDPE Pipes, 40000 MT of fittings to supplement piping system..

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I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

Apollo Pipes limited Stock Performance

Investors have made money in this counter though majority of price action came in last few years that is after year 2014. The stock made full use of the bull run and touched even 600 mark from 30 mark in year 2014. This is good jump of 20 times in share prices over a period of 3 years.

It has corrected significantly in last couple of years but even then it has given good return to investors. If you consider the base price of 2007 and current price it has given more than 40 times return to investors which is good by any standard.

Apollo Pipes limited My Opinion

Apollo Pipes limited is a Pipes Company. It produces wide range of products which is used in variety of Industries. The products are mainly used in Housing projects and Irrigation projects. Housing and Irrigation are two evergreen and developing sectors in India.

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With its product it caters both the Industries. Both the segments are growth segments with good demand in future. India is a developing country and to accommodate the growing population still it required major Infrastructure and housing development. On other side the Irrigation will play vital role going forward as people will try to lessen the dependency on monsoon.

The new products segments like Showers and Solvent cement add another important revenue stream for the Company. It is trying to become one stop shop for pipes and related building materials and irrigation systems Company. The sprinkler and irrigation pipes are other important products.

PVC is raw material for the Company so profit margin depends on price of PVC. Note still majority of sector is unorganized or smaller players so there is not very much pricing power for brands. It can be treated as Commodity business.

I have not yet invested in this sector and will not invest in it. Though I have invested in Companies which will get benefited with Housing play.

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In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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