It's been a good week for APL Apollo Tubes Limited (NSE:APLAPOLLO) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.8% to ₹2,165. The result was positive overall - although revenues of ₹70b were in line with what the analysts predicted, APL Apollo Tubes surprised by delivering a statutory profit of ₹13.61 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on APL Apollo Tubes after the latest results.
Following the latest results, APL Apollo Tubes' 20 analysts are now forecasting revenues of ₹276.3b in 2027. This would be a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 13% to ₹53.33. In the lead-up to this report, the analysts had been modelling revenues of ₹272.7b and earnings per share (EPS) of ₹52.20 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for APL Apollo Tubes
The consensus price target was unchanged at ₹2,381, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic APL Apollo Tubes analyst has a price target of ₹2,810 per share, while the most pessimistic values it at ₹1,605. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting APL Apollo Tubes' growth to accelerate, with the forecast 22% annualised growth to the end of 2027 ranking favourably alongside historical growth of 14% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect APL Apollo Tubes to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around APL Apollo Tubes' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹2,381, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on APL Apollo Tubes. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple APL Apollo Tubes analysts - going out to 2029, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for APL Apollo Tubes that you need to be mindful of.
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