High valuation and margin concern may limit rally in Apollo Tyres

Healthy volume outlook, focus on debt reduction are key positives, say analysts

Topics
Apollo Tyres | Apollo Tyres stock | commercial vehicles

Yash Upadhyaya  |  Mumbai 

Shares of Apollo Tyres, India’s largest commercial vehicle (CV) tyre maker, jumped 12 per cent intra-day on Thursday after the company reported record quarterly revenue for Q3FY21. Consistent demand momentum aided by the strong replacement market, recovery in the original equipment manufacturer (OEM) market, debt reduction, and market share gains were key triggers for the stock.

Sales rose 17 per cent year-on-year (YoY) to Rs 5,154 crore, and came higher than the consensus estimate of Rs 4,743 crore. This was led by a healthy double-digit growth in volumes across all markets ...

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First Published: Thu, February 04 2021. 20:21 IST
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