Apollo Tyres
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Apollo Tyres is navigating a complex landscape characterized by inflationary pressures and strategic restructuring, particularly in its European operations. Management's focus on premiumization and capacity expansion in India is expected to drive long-term growth, despite near-term margin challenges due to rising raw material costs. The company's strong competitive position, with a stable market share and double-digit volume growth, supports Vista's forecast of stable revenue growth and margins. However, the ability to pass on cost increases and potential demand moderation in the latter half of FY27 are critical watchpoints. Overall, while the outlook remains cautiously optimistic, the execution of strategic initiatives will be pivotal in sustaining profitability and achieving long-term targets. The expected upside aligns with a fair valuation, reflecting the balance between growth potential and current market challenges
Why We Like This Stock
- Strong competitive position in India with double-digit volume growth and market share gains
- Strategic restructuring in Europe expected to enhance profitability from H2 FY27
- Focus on premiumization and capacity expansion supports long-term revenue growth
Things To Watch Out For
- Rising raw material costs may pressure margins and impact profitability
- Potential demand moderation in the second half of FY27 could affect revenue growth
- Execution risks associated with the European restructuring and pricing strategies
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 25,378 | 26,123 | 28,471 | 29,686 | 32,297 |
| Profit Before Tax (Cr.) | 2,582 | 1,703 | 2,343 | 2,199 | 2,532 |
| PBT Margin | 10.2% | 6.5% | 822.9% | 7.4% | 7.8% |
| Net Profit (Cr.) | 2,148 | 1,388 | 1,585 | 1,493 | 1,719 |
| Earnings Per Share | 33.8 | 21.8 | 25.0 | 23.5 | 27.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| CLSA | ▼ Underperform | 534 | 10-Aug-2026 |
| Citigroup | ▲ Buy | 510 | 11-Aug-2026 |
| HDFC Securities | ▼ Reduce | 376 | 18-May-2026 |
| ICICI Securities | ▲ Buy | 530 | 10-Aug-2026 |
| JPMorgan | ► Neutral | 445 | 11-Aug-2026 |
| Kotak Securities | ▲ Buy | 486 | 10-Aug-2026 |
| Morgan Stanley | ► Equalweight | 535 | 15-May-2026 |
| Motilal Oswal | ▲ Buy | 528 | 10-Aug-2026 |
| Nomura | ► Neutral | 468 | 10-Aug-2026 |
Company Overview
Show Company Profile
Apollo Tyres Limited manufactures and sells automotive tires, tubes, and flaps in India and internationally. It offers commercial, passenger vehicles, two-wheelers, industrial, trucks and buses, off highway vehicals, light trucks, agricultural, earthmover, and bicycle tyres. The company provides its products under the Apollo Tyres and Vredestein brands. Apollo Tyres Limited was incorporated in 1972 and is headquartered in Gurugram, India.