Is APL Apollo Tubes Overvalued or Undervalued Right Now?
- August 31, 2026
- Posted by: Kunal Singla
- Category: Market
APL Apollo Tubes CMP Rs 2,228.10 (31 Aug 2026), down 1.66%. PE 51.04 vs industry PE 46.18. ROE 22.71%. 52W range Rs 1,578.00 to Rs 2,301.40.
Quick Answer
APL Apollo Tubes trades at a price to earnings ratio of 51.04 against an industry average of 46.18, which puts the stock close to fair value on a simple multiple basis rather than clearly overvalued or undervalued. The company’s 22.71% return on equity and Rs 190.76 book value per share fit broadly within its sector’s range. Whether APL Apollo Tubes is overvalued or undervalued right now is less about a wide valuation gap and more about how its growth and margins evolve from here.
Is APL Apollo Tubes overvalued or undervalued right now is a question worth asking given how its price to earnings ratio compares with the rest of its sector. At the current market price of Rs 2,228.10, the stock trades roughly 3.2% below its 52 week high of Rs 2,301.40 and about 41.2% above its 52 week low of Rs 1,578.00.
APL Apollo Tubes’s share price moved down 1.66% in Monday’s session to Rs 2,228.10, against a market capitalisation of Rs 62,723 Cr. This article looks at the numbers, the PE ratio, price to book, return on equity, debt levels and recent earnings trends, that determine whether the current price reflects fair value or a stretched multiple.
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APL Apollo Tubes Valuation Metrics: Where Does the Stock Stand?
| Valuation Metric | APL Apollo Tubes |
|---|---|
| CMP (31 Aug 2026) | Rs 2,228.10 |
| Market Cap | Rs 62,723 Cr |
| P/E Ratio | 51.04 |
| Industry P/E | 46.18 |
| P/B Ratio | 11.84 |
| Return on Equity (ROE) | 22.71% |
| EPS (TTM) | Rs 44.26 |
| Book Value per Share | Rs 190.76 |
| Debt to Equity | 0.09 |
| Dividend Yield | 0.38% |
| 52 Week High / Low | Rs 2,301.40 / Rs 1,578.00 |
The headline number here is the price to earnings ratio. At 51.04, the APL Apollo Tubes PE ratio is 1.11 times the industry average of 46.18, broadly in line with where the sector trades. Its price to book ratio of 11.84 and return on equity of 22.71% round out the picture of how the market is pricing the stock relative to the business it is buying into.
Is APL Apollo Tubes Overvalued Based on Its P/E Ratio?
Based on the P/E ratio alone, APL Apollo Tubes looks fairly valued. The stock’s PE of 51.04 sits close to the industry average of 46.18, which suggests the market is pricing the business roughly in line with its sector rather than at a premium or a discount. That leaves the read on whether APL Apollo Tubes is overvalued or undervalued more dependent on its growth trajectory than on the PE ratio itself.
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APL Apollo Tubes’s Financial Growth and Profitability
APL Apollo Tubes’s revenue moved from Rs 20,785.60 crore in FY2025 to Rs 23,190.85 crore in FY2026, a change of 11.6%. Net profit grew from Rs 757.06 crore to Rs 1,203.08 crore over the same period, a swing of roughly 58.9%.
The APL Apollo Tubes share price has moved alongside this earnings trend, which is part of why the stock now trades at 1.11 times the industry PE of 46.18 rather than a flat multiple.
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Arguments That APL Apollo Tubes Could Be Overvalued
- High price to book: A P/B of 11.84 means the market is paying several times book value of Rs 190.76 per share.
- Low dividend yield: At 0.38%, the stock offers little income cushion if the growth story slows.
- Limited margin of safety: At Rs 2,228.10, the stock is only 3.2% below its 52 week high of Rs 2,301.40, leaving less room for error if earnings disappoint.
Arguments That Support the Premium Valuation
- High return on equity: ROE of 22.71% reflects efficient use of shareholder capital.
- Low leverage: A debt to equity ratio of 0.09 gives APL Apollo Tubes a comparatively strong balance sheet.
- 52 week range context: At Rs 2,228.10, the stock is 41.2% above its 52 week low of Rs 1,578.00, showing it has already found some support at lower levels.
Verdict: Is APL Apollo Tubes Overvalued or Undervalued Right Now?
On balance, APL Apollo Tubes looks fairly valued rather than clearly overvalued or undervalued. Its PE of 51.04 sits close to the industry average of 46.18, and its 22.71% ROE and other ratios do not point to a significant mispricing either way. The more useful question for investors from here is less about the current multiple and more about whether earnings growth accelerates or slows.
What Could Change This Valuation Picture for APL Apollo Tubes?
Two broad scenarios could shift this valuation call on APL Apollo Tubes in either direction. On the upside, an improvement in return ratios or growth that pushes the stock’s PE of 51.04 toward a premium over the industry average of 46.18. On the downside, a deterioration in the numbers that pulls the PE below the industry average of 46.18 instead. Investors watching the APL Apollo Tubes share price over the next few quarters should track whether reported ROE holds near 22.71% and whether the PE gap versus the industry average of 46.18 widens or narrows, since both will matter more to the eventual answer than the current price point on its own.
Conclusion
APL Apollo Tubes’s numbers point to a stock that is fairly valued on headline multiples. Investors tracking the APL Apollo Tubes share price should watch whether earnings growth can keep pace with the current PE of 51.04, since that gap remains the single biggest variable in whether the stock is undervalued, fairly priced, or overvalued from here. This article is for informational purposes only and is not investment advice.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
FAQs on APL Apollo Tubes Valuation
Is APL Apollo Tubes overvalued or undervalued right now?
Ans. Based on a PE ratio of 51.04 against an industry average of 46.18, APL Apollo Tubes currently looks fairly valued on relative valuation. Its 22.71% ROE is an important part of the picture alongside the PE ratio.
What is APL Apollo Tubes’s current PE ratio?
Ans. APL Apollo Tubes’s price to earnings ratio stands at 51.04, compared with an industry average PE of 46.18.
What is APL Apollo Tubes’s return on equity?
Ans. APL Apollo Tubes generates a return on equity of 22.71%., reflecting how efficiently the company uses shareholder capital.
What is APL Apollo Tubes’s 52 week high and low?
Ans. APL Apollo Tubes’s 52 week high is Rs 2,301.40 and its 52 week low is Rs 1,578.00. The stock currently trades around Rs 2,228.10, roughly 3.2% below its high.
Does APL Apollo Tubes have high debt?
Ans. APL Apollo Tubes carries a debt to equity ratio of 0.09, which is low for its sector.
What is APL Apollo Tubes’s dividend yield?
Ans. APL Apollo Tubes offers a dividend yield of 0.38% at the current share price.
Is APL Apollo Tubes a good stock to buy at current levels?
Ans. APL Apollo Tubes’s current valuation suits investors who agree with the fairly valued read on its PE ratio and are comfortable with the trade-off between its return ratios and its price. This is for informational purposes only and is not investment advice.
What is APL Apollo Tubes’s price to book ratio?
Ans. APL Apollo Tubes trades at a price to book ratio of 11.84, against a book value of Rs 190.76 per share.
