ICICI Securitie`s research report on Apollo Tyres
Post underperforming domestic peers in FY25, Apollo Tyres (APTY) is aiming to outgrow peers going ahead. This will be led by corrective measures undertaken in the last couple of quarters with respect to addressing product gaps (adding SKUs), hiring key personnel etc. 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), is likely to see healthy recovery going forward.
Outlook
Capacity addition could support growth in international markets. Recent correction in international NR / crude prices and restructuring of EU operations are likely to support margin performance. Maintain BUY with a revised TP of INR 555 (earlier 520) based on 15x FY27E EPS.
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