Compounding in Steel; Initiate at Buy

Research evidence excerpt

Compounding in Steel; Initiate at Buy

Exhibit 27: Multiple real-estate-linked demand drivers support structural steel tubes growth

Affordable housing, residential launches, hospitality, healthcare and warehousing all point to multi-year demand support across APAT’s core end-markets

Source: BofA Global Research, JLL, CBRE, Govt of India

BofA GLOBAL RESEARCH

Rising steel intensity in infrastructure another tailwind

Beyond residential and commercial real estate, demand for structural tubes is being

driven by a combination of national infrastructure build‑out, rapid growth in

pre‑engineered buildings (APAT commands 60%–70% share with large PEB fabricators),

expansion in logistics and warehousing, and capital expenditure in industrial

manufacturing. Government‑led infrastructure spending, private capex revival, and

preference for faster construction timelines are structurally increasing tube usage across

metros, highways, factories. Importantly, these end‑use segments are early in their cycle,

providing long term growth visibility.

Exhibit 28: Airports are becoming a larger Exhibit 29: Metro expansion is increasing Exhibit 30: GCC-led office expansion adds

structural demand pool steel tube usage in urban infrastructure another construction demand driver

India’s airport network has more than doubled Rapid growth in metro networks should support Growth in GCC-related office stock should

and should continue to support steel intensity multi-year infrastructure demand support commercial construction intensity

GCCs (mn sqft) 26 Airports (Nos) Metro Network (Kms)

230 23

2014 2025 2030E 2014 2025 2030E 2014 2025 2027E

Source: BofA Global Research, Ministry of Civil Aviation Source: BofA Global Research, Ministry of Railways Source: BofA Global Research, NASSCOM