APL Apollo Tubes Limited Just Recorded A 8.4% Revenue Beat: Here's What Analysts Think

Investors in APL Apollo Tubes Limited (NSE:APLAPOLLO) had a good week, as its shares rose 4.0% to close at ₹1,920 following the release of its quarterly results. APL Apollo Tubes beat revenue expectations by 8.4%, at ₹56b. Statutory earnings per share (EPS) came in at ₹9.48, some 3.1% short of analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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.

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Taking into account the latest results, the current consensus from APL Apollo Tubes' 22 analysts is for revenues of ₹270.2b in 2027. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 18% to ₹52.43. Before this earnings report, the analysts had been forecasting revenues of ₹265.6b and earnings per share (EPS) of ₹52.16 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for APL Apollo Tubes

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,253. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic APL Apollo Tubes analyst has a price target of ₹2,804 per share, while the most pessimistic values it at ₹1,507. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that APL Apollo Tubes' rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. 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 most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for APL Apollo Tubes going out to 2029, and you can see them free on our platform here..

Even so, be aware that APL Apollo Tubes is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.