In their portfolio management service, Edelweiss Securities gives major emphasis on small and medium cap stocks that have a high-risk high return portfolio. In their stock-picking approach, the Edelweiss Research Team chooses stocks that are either showing rising earnings OR down in special situations OR consistently performing OR emerging industry leader OR turn-around stories. Also, they emphasize on stocks that are having a good track record but somehow down due to the overall economic scenario. In their latest Hexagon Portfolio, they have picked APL Apollo Tubes Ltd, a company from the metal sector.
Edelweiss Research Team View on APL Apollo Tubes
Let’s have a look at its fundamentals.
About APL Apollo Tubes Ltd
- The company manufactures steel pipes and tubes.
- It has a market value of 0.41 billion.
- Has a manpower strength of 819 employees.
Financial Data
APL Apollo Tubes Ltd has made a consistent increase in their turnover as well as net income year on year. See the image below:
The company’s price has grown at a stellar pace despite any local or global cues. They are the lowest cost manufacturer and holds 3 times more market share than the Tatas or Jindals. They have also managed to show a consistent reduction in working costs that will reflect in the earnings.
Check the weekly charts of APL Apollo Tubes Ltd above and the Zerodha Kite chart shows how the price of the company has increased over the years. Edelweiss Research Team holds this scrip in their Hexagon Portfolio and we also believe the company can bring enormous growth to the investors in the coming years too.
Technical Analysis
The Edelweiss Research Team has recommended this stock in the Consistent Excellence category. Technically we believe that the investors should not invest a big amount in current valuations. Rather invest 25% in this scrip and wait for a decent dip. Any dip close to 1500-1400 should be bought safely and will target 1950 in the medium term.
