Sharekhan's research report on Apollo Tyres
Apollo Tyres Ltd’s (ATL’s) management stays committed to achieve its long-term goal of revenues of $5 billion by FY2026, EBITDA margin of at least 15%, ROCE of 12-15%, and net debt to EBITDA of less than 2x. ATL is set to benefit from its strategy of deleveraging its balance sheet, improving operating leverage and focusing on firm capital allocation and cash management going forward. Stock trades attractively at a P/E multiple of 7.9x and EV/EBITDA multiple of 4.1x its FY2024E estimates.
We maintain a Buy rating on Apollo Tyres with a revised PT of Rs. 222, led by the company’s dominant position in key markets, expected market share gains across segments, and attractive valuations.
At 15:23 hrs Apollo Tyres was quoting at Rs 177.95, up Rs 2.00, or 1.14 percent.
It has touched an intraday high of Rs 180.30 and an intraday low of Rs 167.15.
It was trading with volumes of 213,973 shares, compared to its thirty day average of 205,283 shares, an increase of 4.23 percent.
In the previous trading session, the share closed down 0.17 percent or Rs 0.30 at Rs 175.95.
The share touched its 52-week high Rs 250.00 and 52-week low Rs 165.40 on 18 October, 2021 and 07 March, 2022, respectively.
Currently, it is trading 28.82 percent below its 52-week high and 7.59 percent above its 52-week low.
Market capitalisation stands at Rs 11,301.62 crore.
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