Here's What Analysts Are Forecasting For APL Apollo Tubes Limited (NSE:APLAPOLLO) After Its First-Quarter Results
APL Apollo Tubes Limited (NSE:APLAPOLLO) shareholders are probably feeling a little disappointed, since its shares fell 7.4% to ₹1,543 in the week after its latest quarterly results. Revenues came in 3.0% below expectations, at ₹52b. Statutory earnings per share were relatively better off, with a per-share profit of ₹8.54 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from APL Apollo Tubes' 17 analysts is for revenues of ₹238.5b in 2026. This would reflect a decent 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 38% to ₹39.95. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹250.5b and earnings per share (EPS) of ₹42.56 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
Check out our latest analysis for APL Apollo Tubes
The analysts made no major changes to their price target of ₹1,834, suggesting the downgrades are not expected to have a long-term impact on APL Apollo Tubes' valuation. 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. There are some variant perceptions on APL Apollo Tubes, with the most bullish analyst valuing it at ₹2,111 and the most bearish at ₹1,211 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 19% growth on an annualised basis. That is in line with its 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although APL Apollo Tubes is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for APL Apollo Tubes. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at ₹1,834, 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 forecasts for APL Apollo Tubes going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with APL Apollo Tubes , and understanding it should be part of your investment process.
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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.