Hold Apollo Tyres, says Bonanza

ALSO READ See previous views by Bonanza See what other Experts & Brokerages are saying about Apollo Tyres See messages about Apollo Tyres Apollo Tyres BSE | NSE 10/02/12 Are Mutual Funds betting on Apollo Tyres?

Bonanza has come out with a research report on Apollo Tyres . The research firm said investors could continue to hold the stock, in its report dated February 8, 2010.

The report says, "Apollo Tyres reported an impressive growth on y-o-y but it has registered a marginally decline in their quarterly performance owing to higher raw material prices and interest cost. The Chennai plant, a green field facility which is expected to be executed in Q4FY10 would further improve its top line with almost 40% increase in capacity. Going forward a strong demand from replacement and OEM market is expected with increased auto sales. At CMP Rs 56.7 share is trading at forward earning multiple of 7.19 x. Investors can continue to hold the share."

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To read the full report click on the attachment