Kotak Securities's Stock Pick Today: Buy Apollo Tyres with Target Rs 485

Kotak Securities recommends buying Apollo Tyres at the current market price of Rs 476.45. The brokerage firm has a target price of Rs 485 for the stock, representing a potential upside of over 2%. The bullish outlook is based on the company's strong fundamentals, including its market leadership in India, healthy financials, and growth prospects in overseas markets. Kotak Securities believes that the stock is undervalued at current levels and presents an attractive investment opportunity for investors looking for long-term growth.

About Apollo Tyres:

Apollo Tyres is an Indian multinational automotive tyre manufacturer headquartered in Gurgaon, India. The company was founded in 1972 and is currently one of the world's leading tyre manufacturers with a presence in over 100 countries. Apollo Tyres manufactures a wide range of tyres for passenger cars, commercial vehicles, buses, trucks, and two-wheelers. The company has 12 manufacturing facilities across India, Europe, and Africa. Apollo Tyres also has a number of joint ventures and technical collaborations with leading global tyre manufacturers.

52 Week Price Trend:

Apollo Tyres, currently trading at Rs 476.45, has experienced significant volatility in the past year. Its 52-week high of Rs 559.85 represents a potential upside of 17.5%, while its 52-week low of Rs 303.35 presents a downside risk of 35.9%. These wide fluctuations indicate the stock's sensitivity to market conditions and investor sentiment. Investors considering Apollo Tyres should carefully evaluate the company's fundamentals, industry outlook, and overall risk tolerance before making an investment decision.

Stratzy's MOST Analysis:

Based on Stratzy's MOST framework, APOLLOTYRE has received a BBB rating. This indicates that the company has medium fundamental risks. The framework assesses companies' management, outlook, safety, and trend. A BBB rating suggests that APOLLOTYRE has a satisfactory management team, a positive outlook for future growth, a reasonable level of financial stability, and a stable or improving market trend. However, investors should still exercise caution as BBB-rated companies may still carry some financial or operational risks.

Company's Fundamentals:

NSE-listed Apollo Tyres (APOLLOTYRE) stands at a Stock PE of 18.52, indicating that investors are willing to pay 18.52 times the company's annual earnings per share. Its Price-to-Book ratio of 2.57 suggests that its market value is 2.57 times higher than its book value, signaling a premium valuation. Despite these valuations, Apollo Tyres offers a Dividend Yield of 0.76%, providing a modest income stream to investors who seek regular dividends.

Fundamental and Technical information provided in this blog were last updated on 07 Jun, 2024

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