Buy Apollo Tyres; target of Rs 535: ICICI Securities

ICICI Securities is bullish on Apollo Tyres has recommended buy rating on the stock with a target price of Rs 535 in its research report dated August 08, 2025.

Broker Research

August 14, 2025 / 13:22 IST

BUY

26 Aug, 2025 12:21

Volume

Todays L/H

ICICI Securities's research report on Apollo Tyres

Apollo Tyres (APTY) Q1FY26 operating performance broadly was in-line. Standalone margin was better than our estimate (on lower RM basket) but was offset by weak margin performance in EU. Domestic replacement demand remains healthy across TBR and PCR segments. OE segment, which was declining for APTY owing to product portfolio revamp (shifting to larger rim sizes), may see recovery going forward. Capacity addition could support growth in international markets. RM basket could moderate further going ahead led by correction in prices of crude derivatives. We cut roour EPS for FY26-27E by 4-7% owing to the weakness in EU business. Its restructuring is likely to drive improved profitability FY27 onwards.

Outlook

Maintain BUY with a revised TP of INR 535 (earlier 555), based on 15x FY27E EPS.

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