Apollo Tyres
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Apollo Tyres' management has expressed a confident outlook, driven by robust demand in India and strategic restructuring in Europe. The company is effectively managing inflationary pressures through disciplined pricing strategies, which are expected to support revenue growth and margin stability. Recent developments, including the transition of production capacities to Hungary and India, are anticipated to enhance operational efficiencies and profitability from H2 FY27. Vista's financial outlook reflects stable revenue growth and margins, supported by a strong balance sheet and high capacity utilization. The expected upside of approximately 10.77% aligns with the company's strategic focus on premiumization and capacity expansion, despite potential headwinds from raw material volatility and geopolitical tensions. Over the next 12-24 months, key opportunities include leveraging strong demand in the replacement market and new OEM approvals, while watchpoints include the ability to pass on rising costs and potential demand moderation due to inflationary pressures
Why We Like This Stock
- Strong demand in India and strategic restructuring in Europe are expected to enhance profitability
- Disciplined pricing strategies are helping to manage inflationary pressures and protect margins
- High capacity utilization and a robust balance sheet support future growth initiatives
Things To Watch Out For
- Rising raw material prices could impact profitability and margin stability
- Geopolitical tensions may lead to increased cost pressures and supply chain disruptions
- Potential demand moderation in the second half of FY27 due to inflation could affect revenue growth
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 25,378 | 26,123 | 28,471 | 29,607 | 31,441 |
| Profit Before Tax (Cr.) | 2,582 | 1,703 | 2,343 | 2,310 | 2,523 |
| PBT Margin | 10.2% | 6.5% | 8.2% | 7.8% | 8.0% |
| Net Profit (Cr.) | 2,148 | 1,388 | 1,585 | 1,568 | 1,712 |
| Earnings Per Share | 33.8 | 21.8 | 25.0 | 24.7 | 27.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| UBS | ▲ Buy | 590 | 24-Aug-2026 |
| Citigroup | ▲ Buy | 510 | 11-Aug-2026 |
| JPMorgan | ► Neutral | 445 | 11-Aug-2026 |
| CLSA | ▼ Underperform | 534 | 10-Aug-2026 |
| ICICI Securities | ▲ Buy | 530 | 10-Aug-2026 |
| Kotak Securities | ▲ Buy | 486 | 10-Aug-2026 |
| Motilal Oswal | ▲ Buy | 528 | 10-Aug-2026 |
| Nomura | ► Neutral | 468 | 10-Aug-2026 |
| HDFC Securities | ▼ Reduce | 376 | 18-May-2026 |
| Morgan Stanley | ► Equalweight | 535 | 15-May-2026 |
Company Overview
Show Company Profile
Apollo Tyres Limited manufactures and sells automotive tires, tubes, and flaps in India and internationally. It offers tires for commercial and passenger vehicles, two-wheelers, trucks and buses, off-highway vehicles, light trucks, earthmovers, and bicycles, as well as for agricultural, farm, and industrial applications. The company provides its products under the Apollo Tyres and Vredestein Tyres brands. Apollo Tyres Limited was incorporated in 1972 and is headquartered in Gurugram, India.