IIFL Securities's Stock Idea: Buy Apollo Tyres with Target Rs 530

IIFL Securities recommends buying Apollo Tyres at the current market price of Rs 516.45. The target price for the stock has been set at Rs 530, suggesting a potential upside of 2.6%. This positive outlook is based on the company's strong financial performance, increasing demand for its products, and the overall bullish sentiment in the automotive sector. Investors may consider buying the stock for potential gains in the short to medium term.

About Apollo Tyres:

Apollo Tyres is a leading global tire manufacturer with operations in India, Europe, and North America. Founded in 1972, the company offers a diverse portfolio of tires for passenger vehicles, commercial vehicles, and off-highway applications. Apollo Tyres operates 11 manufacturing facilities across seven countries and has a presence in over 100 countries. With a strong focus on innovation and technology, Apollo Tyres is committed to providing high-quality tires for its global customer base. The company is also known for its commitment to sustainability and environmental conservation initiatives. Apollo Tyres is listed on the National Stock Exchange (NSE) of India and is a part of the Nifty 500 index.

52 Week Price Trend:

Apollo Tyres is currently trading at Rs 516.45, hovering below its 52-week high of Rs 559.85 and above its 52-week low of Rs 303.35. The company's stock price has shown a significant upward trend over the past year, indicating positive market sentiment and strong investor confidence in the company's growth prospects. The current price offers a potential entry point for investors who believe in the long-term potential of Apollo Tyres. However, it is important to note that stock prices can fluctuate, and investors should conduct thorough research and consult with financial advisors before making any investment decisions.

Stratzy's MOST Analysis:

Based on Stratzy's MOST framework, APOLLOTYRE has received a BBB rating, indicating medium fundamental risks. This rating is derived from an evaluation of the company's Management, Outlook, Safety, and Trend. The BBB rating suggests that APOLLOTYRE has a reasonably sound business model, stable outlook, and manageable financial risks, but it may also face some challenges or uncertainties in certain areas. Investors should consider the specific factors underlying this rating and conduct further due diligence before making investment decisions.

Company's Fundamentals:

Apollo Tyres, listed on the NSE (APOLLOTYRE), currently has a Stock PE ratio of 18.52, indicating that for every Rs. 18.52 invested in the company's earnings, investors can expect a return of Rs. 1. The PB Ratio of 2.57 suggests that the company's market value is 2.57 times its book value, implying that investors are paying a premium for the company's assets. Additionally, the Dividend Yield of 0.76% indicates that investors can expect to receive Rs. 0.76 in dividends for every Rs. 100 invested in the company's stock.

Fundamental and Technical information provided in this blog were last updated on 25 Jun, 2024

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