The IIFL Securities Report: Buy Apollo Tyres

IIFL Securities maintains a bullish stance on Apollo Tyres, recommending a buy call with a target price of Rs 568. This suggests a potential upside of over 3% from the current market price of Rs 551.6. The research firm cites favorable industry tailwinds, strong demand recovery, and Apollo Tyres' robust market position as key factors driving its positive outlook.

About Apollo Tyres:

Apollo Tyres Ltd. is an Indian multinational tyre manufacturing company headquartered in Gurugram, Haryana. It is one of the leading tyre manufacturers in India and the 13th largest tyre manufacturer globally. The company manufactures and sells a wide range of tyres for passenger cars, commercial vehicles, buses and trucks, off-highway vehicles, and two-wheelers. It has a presence in over 100 countries and operates four manufacturing plants in India, one in the Netherlands, and one in Hungary. Apollo Tyres is known for its innovative tyre designs and its commitment to sustainability.

52 Week Price Trend:

Apollo Tyres, listed on the NSE as APOLLOTYRE, is currently trading at Rs 551.6. This is close to its 52-week high price of Rs 559.85, indicating that the stock is trading near its recent peak. However, the stock has also witnessed significant volatility over the past year, with its 52-week low price being Rs 303.35. This wide range suggests that investors should exercise caution and carefully consider their investment strategy before entering or exiting positions in Apollo Tyres.

Stratzy's MOST Analysis:

According to Stratzy's MOST framework, APOLLOTYRE has a BBB rating, indicating medium fundamental risks. This rating is based on the company's performance in four key areas: Management, Outlook, Safety, and Trend. The BBB rating suggests that the company's management is competent and has a clear strategy for growth. The company's outlook is also positive, with strong demand for its products and services. The company's financial position is solid, and it has a track record of profitability. However, the company faces some challenges, including competition from larger players and volatile commodity prices. Overall, the BBB rating indicates that APOLLOTYRE is a solid investment with moderate risks.

Company's Fundamentals:

Apollo Tyres (NSE:APOLLOTYRE) is currently valued at a Stock PE multiple of 18.52, indicating that investors are willing to pay 18.52 times its annual earnings per share for each share of the company. The PB Ratio of 2.57 suggests that the market value of Apollo Tyres is 2.57 times its book value, which gauges the company's asset value. Additionally, the Dividend Yield of 0.76% reflects the annual dividend paid per share as a percentage of the current stock price, offering investors a potential income stream. These metrics provide a snapshot of Apollo Tyres' financial performance and market valuation.

Fundamental and Technical information provided in this blog were last updated on 16 Jul, 2024

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