Apollo Tyres stock opened 2.15% higher at Rs 362.95 against the previous close of Rs 355.30 on BSE. Apollo Tyres stock opened 2.15% higher at Rs 362.95 against the previous close of Rs 355.30 on BSE. Apollo Tyres stock opened 2.15% higher at Rs 362.95 against the previous close of Rs 355.30 on BSE. Shares of Apollo Tyres hit their all-time high today after enterprise application software and cloud solutions company SAP said it was supporting the tyre manufacturer in moving their digital core onto the cloud.
Apollo Tyres stock opened 2.15% higher at Rs 362.95 against the previous close of Rs 355.30 on BSE. Later, the tyre maker hit a record high of Rs 365.15, rising 2.77% on BSE. The stock has been gaining for the last two sessions.
In terms of technicals, the relative strength index (RSI) of the stock stands at 76.6, signaling it's trading in the overbought zone. The stock has a one-year beta of 1.1, indicating average volatility during the period. Shares of Apollo Tyres are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
The stock has gained 81.4% in a year and gained 12% in 2023. Total 0.78 lakh shares of the firm changed hands amounting to turnover of Rs 2.81 crore. Market cap of the firm rose to Rs 23,047 crore.
Under Apollo Tyres’ digitalisation efforts, shifting to SAP’s integrated and secure cloud platform will enable the tyre-maker to secure the outer perimeter of its key systems, innovate new products and services faster, and provide superior customer experiences.
SAP’s business transformation as a service — RISE With SAP — brings the products and tools in one package enabling companies to speed their cloud journey regardless of size, industry, cloud readiness, customisation, volume, or departure point, SAP added.
Ravi Singhal, CEO, GCL Broking said, " Valuations of RVNL are not comfortable
but still buy on dips is recommended near Rs 100 levels. If we see as per valuations, stock is trading above industry avg PE and Price to book is also above comfortable levels. So wait for dips for new entry. If someone wants to hold, then should keep a stop loss of Rs 117."
Ajit Mishra, VP - Technical Research, Religare Broking said, "RVNL stock is trading at FY25 EV/EBITDA of 10.9X which is on the higher side compared to its long-term average of 7.0X. Though the valuations are on the higher side, RVNL is entering the next leg of growth through diversification and faster project execution. We believe that the company should be looked at as a multi-year growth story and we recommend holding it for the long-term. Given the order booking pipeline of Indian Railways for the next 7-8 years, we believe that the order inflow could sustain RVNL. In addition, the company has also started taking orders from non-railway segments, such as:
1) RVNL emerged as an L1 bidder for the Mahi Bajaj Sugar irrigation project. The total cost is INR 2249 cr.
2) The company also bagged the contract for the Chennai Metro Rail Ltd phase 2 project, with a total order book of INR 3146 cr. So a turnkey project operator, which used to take only Indian Railways projects is diversifying in other infrastructure areas, thereby de-risking its business model."