Motilal Oswal Recommends 'BUY' on APL Apollo Tubes, Sets Target at Rs 2260

• APL Apollo Tubes (APAT) is India's market leader in structural steel tubes with a 55% share and 4.5 MTPA capacity.
• The company reported record sales of ~917KT in 3QFY26, an 11% YoY increase, demonstrating consistent volume growth.
• Despite a 4% QoQ decline in HRC prices in 3Q, APAT maintains its FY26 volume growth guidance of 10-15%.
• Growth is supported by capacity expansion in Dubai, the launch of 'SG Premium' brand, and strong private-sector demand.
• Motilal Oswal projects a CAGR of 14%/29%/33% in revenue/EBITDA/PAT over FY25-28, valuing the stock at 35x FY27E EPS.

Why It Matters: Motilal Oswal recommends buying APL Apollo Tubes, citing strong market leadership and growth prospects.