APL Apollo Tubes shares are having their best start to a year since 2018 — Here's what the street likes

Shares of APL Apollo Tubes Ltd. are trading with gains of over 3%, extending their streak for the second day running. The stock had surged over 5% on Thursday, after its quarterly results were reported, snapping a three-day losing streak in the process.

With this, the stock is up 7% so far in January. This is turning out to be the best start to a calendar year for the stock since 2018, when the stock had gained 8%.

Here's why the street is betting on the stock:

Strong Results

APL Apollo Tubes reported a strong quarter with volumes rising to 917 kt, from 855 kt during the same quarter last year. The share of its Value Added Products (VAP) has increased to 57% of the overall topline from 55% earlier.

The company's EBITDA per Tonne has remained steady at ₹5,146 from ₹5,228 last year.

Other Aspects In Q3

At the end of the December quarter, APL Apollo Tubes has a net cash balance of ₹560 crore with net working capital days declining to three days.

Capacity Expansion Plans

At the end of the first nine months of financial year 2026, APL Apollo Tubes had an overall capacity of 5 MT and the management has plans to double that to 10 MT by financial year 2030.

Guidance Raised

The management has gone on to raise its EBITDA per tonne guidance for financial year 2027 to ₹5,500 from ₹4,600 - ₹5,000 earlier, while its volume growth guidance has also been amped up to 20% for the next financial year, from 10% - 15% earlier.

Analysts Bullish

15 out of the 18 analysts who have coverage on APL Apollo Tubes have a "buy" rating on the stock. Two others have a "hold" rating, while one has a "sell" recommendation.

Shares of APL Apollo are trading 3.1% higher on Friday at ₹2,037.6. The stock had gained 22% in 2025, marking the seventh straight year of positive returns for the stock.