APL Apollo is considered as market leader in the structural steel tube industry holding 50% market share. With the consumption of structural steel tubes in India is only about 4% as against global proportion of 10% indicating further scope for an increase in the consumption level. Evolving infra – construction activity, incorporating new Greenfield capacity with incremental capacity of 1.5 million tonnes, focus on margin expansion, reducing working capital and leverage position will strengthen its capital allocation which will result in strong revenue and earnings growth in the coming years. We anticipate, APL’s Revenue/PAT/OCF to grow at a CAGR of 37/47/14% over FY21-24E, we initiate coverage on APL Apollo with a “BUY” recommendation with a Target price of Rs 1188 (upside of 27%) valuing the company at 23x historical average on FY24E EPS.