My thesis on Apollo pipes:
*30+% CAGR top line growth for next few years (FY23-25)
*Capacity utilization just at 45% (Operating leverage will kick in as utilization ramps up.
*No major capex in next 3 years (just 45Cr - for mostly valued added products)
*ROCE to be 30% by FY 25, currently at 20% tough it appears to be 16%.
*Current EBITDA per ton at 16K and will be 20K by FY25.
*Current sales force at 150 and will be 200 by FY23 and will be enough upto FY25.
*Channel partner/dealer at 600, will be 10% increase YOY.
*Volume growth to be 20% and value growth will be 10% for next 3 year.
Took entry into Apollo pipes and exited Prince Pipes, Opportunity hear looks much higher as compared to Prince Pipes plus lower base of AP.