Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - UBS has reiterated its Buy rating on APL Apollo Tubes Ltd (NS:APAT) with a price target of INR2,000.00, citing the company’s strategic launch of ’SG Premium’ brand.
The firm believes APL’s new brand strategy, designed to directly challenge competitors, represents a positive direction for the company. UBS notes that narrowing the price gap with peers while utilizing APL’s established dealer network connections could shift dealers’ capital allocation toward APL products.
UBS addresses concerns about increased competition and capacity expansion by competitors who have been selling at a discount to APL. The firm suggests this strategy could help control competitive intensity and potentially impact rivals’ expansion plans, keeping industry supply levels in check.
For Q2FY26, UBS projects 12% year-over-year volume growth to 850,000 tons with revenue aligning with consensus estimates. The firm anticipates APL could exceed profitability expectations with a potential 8-10% beat.
UBS forecasts an EBITDA of Rs4.4 billion for APL Apollo Tubes in the quarter, suggesting the company may deliver stronger-than-expected financial performance.
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