Top Stocks Today : Kotak Securities has Buy call on Apollo Tyres - June 07

Kotak Securities has issued a buy call on Apollo Tyres, with a target price of Rs 485. The current market price of Apollo Tyres is Rs 476.45, suggesting a potential upside of 1.8%. The brokerage firm believes that strong demand from the replacement market and increasing exports will drive growth for the company. Apollo Tyres' strong brand recognition and wide distribution network are also cited as factors supporting the buy call.

About Apollo Tyres:

Apollo Tyres is a leading global tyre manufacturer and the flagship company of the Apollo Group. Headquartered in Gurugram, India, it is one of the largest tyre manufacturers in the world by revenue. The company produces a wide range of tyres for passenger cars, commercial vehicles, two-wheelers, and off-highway vehicles. Apollo Tyres has a global presence with manufacturing facilities in India, the Netherlands, Hungary, and Slovakia. The company has a strong distribution network spanning across 100 countries and serves customers in over 150 countries. Its brands include Apollo, Vredestein, Dunlop, and KaMeWa. Apollo Tyres is committed to innovation and sustainability, and invests heavily in research and development. The company has received numerous awards and recognitions for its products and practices.

52 Week Price Trend:

Apollo Tyres' (NSE: APOLLOTYRE) current share price of Rs 476.45 lies below its 52-week high of Rs 559.85, suggesting room for potential growth. However, it is important to note that the stock has experienced significant volatility in the past year, dipping to a 52-week low of Rs 303.35. This wide range indicates the potential for both gains and losses, and investors should carefully consider their risk tolerance and investment goals before making decisions.

Stratzy's MOST Analysis:

Stratzy's MOST framework evaluates stocks based on four pillars: Management, Outlook, Safety, and Trend. APOLLOTYRE's BBB rating corresponds to Medium Fundamental Risk, indicating a balanced assessment of the company's strengths and weaknesses. The rating suggests that APOLLOTYRE has a capable management team, a generally positive outlook, adequate financial safety, and a moderate trend in its business performance. However, investors should note that the rating is subject to change and further research is recommended before making any investment decisions.

Company's Fundamentals:

Apollo Tyres (APOLLOTYRE on NSE) is currently trading at a Stock PE of 18.52, indicating that investors are willing to pay INR 18.52 for every INR 1 of earnings. The PB Ratio of 2.57 suggests that the company's market value is 2.57 times its book value, reflecting a moderate premium over its assets. With a Dividend Yield of 0.76%, investors can expect to earn an annual income of INR 0.76 for every INR 100 invested in the company. These metrics provide insights into the company's valuation, profitability, and dividend distribution policy, helping investors make informed investment decisions.

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

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