Choice Institutional Equities has maintained its buy rating on Apollo Pipes with a revised target price of ₹350 per share, as reported by Moneycontrol. The brokerage has lowered its EBITDA and PAT growth projections by 30.5% and 49.6% respectively for FY26E, and 24.5% and 31.7% for FY27E. The previous target price of ₹420 per share has been reduced to the current ₹350 target.
According to the research report dated January 31, 2026, Apollo Pipes is expected to achieve 17% volume CAGR over FY25-28E, driven by industry demand and market share gains from unorganized players. The company's EPS is forecast to expand at a CAGR of 49.8% based on assumptions of 17% volume CAGR, 2% growth in realization, and EBITDA margin improvement of 151 basis points over FY25-28E. ROCE is expected to reach 14.6% by end of FY28E compared to 6.7% in FY25.
As reported by Moneycontrol, the margin improvement is attributed to operating leverage benefits from strong volume growth, margin improvement in Kisan Mouldings asset due to initiatives by Apollo Pipes, and improving contribution from higher-margin products such as CPVC. The brokerage assigns a PEG ratio of 0.9x on FY25-28E core EPS CAGR, which it considers conservative in arriving at the target price of ₹350 per share.
According to the research report, higher volatility in PVC resin prices and slowdown in infrastructure spending by the government are identified as risks to the buy rating. The positive outlook is supported by higher infrastructure spending by state and central governments and demand boost from completion of real estate projects launched between FY22 and FY25, which are expected to drive volume growth for pipes over FY26-28E.
