Buy Apollo Tyres; target of Rs 520: Motilal Oswal

Motilal Oswal is bullish on Apollo Tyres has recommended buy rating on the stock with a target price of Rs 520 in its research report dated August 08, 2025.

Broker Research

August 11, 2025 / 13:30 IST

BUY

26 Aug, 2025 12:21

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Motilal Oswal's research report on Apollo Tyres

Apollo Tyres (APTY)’s 1QFY26 consolidated performance was in line with our estimates. However, while standalone performance was much ahead of our estimates, the European business margin was weaker than expected. On account of its weak performance in Europe, we reduce our EPS estimates by 10%/6% over FY26/FY27E. We factor in a 60bp improvement in APTY’s margin during our forecast period, driving a 21% PAT CAGR over a corrected base. Valuations at 15.2x FY27E appear attractive, especially when compared to peers. We reiterate our BUY rating on APTY with a TP of INR520 (valued at 18x Jun’27E consol. EPS).

Outlook

Valuations at 15.2x FY27E appear attractive, especially when compared to peers. We reiterate our BUY rating on APTY with a TP of INR520 (valued at 18x Jun’27E consol. EPS).

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