UBS has reiterated its buy rating on APL Apollo Tubes with a target price of ₹2,000, saying the company’s recent initiatives are well timed to boost competitiveness and growth momentum. The brokerage noted that the launch of “SG Premium,” a new brand aimed at taking on peers directly, marks a step in the right direction for strengthening market positioning.
For the second quarter, UBS expects volumes to grow 12% year-on-year to 850,000 tonnes, with revenue in line with projections. EBITDA is expected to outperform estimates by 8–10%, reaching around ₹440 crore. The brokerage said this reflects the benefits of premiumisation, efficiency improvements, and stronger demand visibility.
UBS added that APL Apollo’s ongoing brand-building efforts and execution discipline reinforce its ability to capture incremental market share in a competitive environment. The brokerage believes that the combination of volume growth and margin strength underpins its bullish stance on the stock.
Disclaimer: The views and recommendations made in this article are those of UBS. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.