Apollo Pipes (APOLLOPIPE)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Low debt/equity of 0.08 leaves room to survive a downturn.
• Promoter holding of 46.84% aligns owner-managers with minority shareholders.
• Latest quarter sales of ₹247 Cr shows the operating scale remains sizeable despite the decline.
• Price is well above the 52-week low of ₹252.10, suggesting some market confidence in a recovery.

Concerns

• Profit growth at -152.50% and latest quarter net profit of -₹5 Cr mean the company is currently loss-making.
• P/E of 96.86 is extremely expensive for a company with negative growth and weak returns.
• ROE of 2.72% and ROCE of 7.32% show poor capital efficiency; P/B of 3.00 offers no value cushion.
• Piotroski F-Score of 3/9 and FairStock Score of 0/100 flag serious fundamental risk.

AI Analysis

As a value investor, I first ask: is this a business I can understand and evaluate? Apollo Pipes operates in plastic products, but the numbers do not encourage me. Sales are down 19.73%, and profit growth is minus 152.50%; the latest quarter shows ₹247 Cr of sales and a net loss of ₹5 Cr. A company earning a loss is not a candidate for a Graham purchase unless the price offers a huge margin of safety. At ₹452.70, I am asked to pay a P/E of 96.86, despite a Piotroski F-Score of only 3/9 and a FairStock Score of 0/100. The market is pricing a recovery that has not yet appeared in the financial statements. Book value is ₹151, so the stock trades at 3 times book. ROE is just 2.72% and ROCE is 7.32%, meaning the business is generating poor returns on both equity and capital. I do not need to pay a premium for a business earning less than 3% on equity. The low debt/equity of 0.08 is one comfort; the promoter holding of 46.84% also shows alignment. But low debt alone does not make a bargain. Dividend yield of 0.20% would not pay me to wait. This looks like a cyclical business in a downcycle, not a compounder. The 52-week range of ₹252.10 to ₹553.15 reminds me how volatile the earnings and price can be. If the cycle turns, a higher price today would be justified only after margins and profits actually recover. I prefer the pain of patience to the pain of paying 97 times earnings for a loss-making quarter. Let the business prove itself first; until then, I watch and wait.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer