Moneycontrol
Get App
Last Updated : May 21, 2020 08:29 PM IST | Source: Moneycontrol.com

Buy Apollo Tyres target of Rs 108: Sharekhan

Sharekhan is is bullish on Apollo Tyres has recommended buy rating on the stock with a target price of Rs 108 in its research report dated May 20, 2020.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on Apollo Tyres


Apollo Tyres Limited (ATL) posted better than expected operating results for Q4FY20. Despite steep fall in topline due to weak demand, operating margins improved driven by soft commodities and cost control measures. Demand is picking up with faster recovery expected for the replacement segment which forms 75% of revenues. Relaxation of lockdown norms and increased usage of personal vehicles post CONVID-19 would lead to recovery. With commodity prices expected to remain soft and cost control measures, we expect margins to improve further. We expect strong 33% earnings CAGR over next two years.



Outlook


P/E of 7.4x FY22 earnings and P/B of 0.5x are attractive and below long term historical averages. Have fine tuned earnings to factor near term demand weakness. Retain Buy with revised PT of Rs 108.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.




Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
Get best insights into Options Trading. Join the webinar by Mr. Vishal B Malkan on May 28 only on Moneycontrol. Register Now!

First Published on May 21, 2020 08:29 pm
Sections
Follow us on