Axis Securities has a buy call on APL Apollo Tubes with a target price of Rs 1,240, implying an upside potential of 9% from the current market price of Rs 1,133 per share. "Despite the tough market conditions, APAT managed to release the WC in H1FY23 and achieved a good OCF to EBITDA (At 102% in H1FY23 vs 69% in FY22). Going forward, as steel prices stabilize, we expect EBITDA/t should improve as the discounts to distributors decrease and the Raipur plant ramp-up provides richer EBITDA/t in the product mix," it said.