ICICI Direct's research report on Apollo Tyres
Apollo Tyres (ATL) is a leading tyre manufacturer, with operations in India & Europe with an installed capacity of ~7.9 lakh MTPA. In India, ATL has a substantial presence in TBR (31% market share) & PCR space (21% market share). Derives ~67% revenues from APMEA (largely India), ~32% from Europe • FY22 segment mix: Truck/bus ~43%, PV ~35%, OHT ~10%, others ~12%.
Outlook
We retain our BUY rating on ATL amid strong focus on capital efficiency, controlled capex spends and healthy margin recovery for the base business. Upgrading our margin estimates, we now value ATL at a target price of Rs 335 i.e., 6x FY24E EV/EBITDA (previous target price: Rs 290).
More Info
At 11:40 hrs Apollo Tyres was quoting at Rs 274.65, down Rs 3.05, or 1.10 percent.
It has touched an intraday high of Rs 279.75 and an intraday low of Rs 274.45.
It was trading with volumes of 72,362 shares, compared to its thirty day average of 188,759 shares, a decrease of -61.66 percent.
In the previous trading session, the share closed up 1.11 percent or Rs 3.05 at Rs 277.70.
The share touched its 52-week high Rs 279.70 and 52-week low Rs 165.40 on 08 September, 2022 and 07 March, 2022, respectively.
Currently, it is trading 1.81 percent below its 52-week high and 66.05 percent above its 52-week low.
Market capitalisation stands at Rs 17,443.05 crore.
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