Buy Apollo Tyres; target of Rs 603: Motilal Oswal

Motilal Oswal is bullish on Apollo Tyres has recommended buy rating on the stock with a target price of Rs 603 in its research report dated November 12, 2025.

Broker Research

November 19, 2025 / 12:00 IST

Buy

26 Aug, 2025 12:21

Volume

Todays L/H

Motilal Oswal's research report on Apollo Tyres

Apollo Tyres’ (APTY) 2QFY26 consolidated PAT (adjusted for one-offs) at INR3.9b was broadly in line with our estimate of INR3.7b. While EBITDA margins for both India and Europe beat our estimates, the PAT upside was limited by a higher-than-expected tax rate. Given the better-than-expected performance in 2Q and an expectation of benign input costs going forward, we increase our EPS estimates by 4%/7% over FY26/FY27E. We factor in a 170bp expansion in APTY’s margin during our forecast period, driving a 22% PAT CAGR over a corrected base. Valuations at 16.6x FY27E appear attractive, especially when compared to those of peers. We reiterate our BUY rating on APTY with a TP of INR603 (valued at 18x Sep’27E consol. EPS).

Outlook

Valuations at 16.6x FY27E appear attractive, especially when compared to those of peers. We reiterate our BUY rating on APTY with a TP of INR603 (valued at 18x Sep’27E consol. EPS).

For all recommendations report, click here