APL Apollo Tubes Limited

“APL Apollo Tubes is India's dominant structural steel tube converter with ~55% organised market share, a self-reinforcing distribution moat, proprietary DFT process technology, and a multi-decade runway in India's underpenetrated construction economy. FY2026 financials confirm the thesis: net-cash balance sheet, EBITDA margin expanding to 8.6%, operating cash flow of ₹21B, and ROCE sustainably above 30%. The business is exceptional. The stock, at 43x trailing and 29x forward earnings, prices in most of that quality and offers only ~8-9% annual return in the base case — barely above Indian risk-free rates. There is no margin of safety at current levels, making TRACK the appropriate stance for new investors while existing holders should hold without adding materially.”