APOLLOTYRE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | APOLLOTYRE | Market Cap | 23,619 Cr. | Current Price | 372 ₹ | High / Low | 540 ₹ |
| Stock P/E | 12.6 | Book Value | 187 ₹ | Dividend Yield | 1.34 % | ROCE | 15.6 % |
| ROE | 16.6 % | Face Value | 1.00 ₹ | DMA 50 | 418 ₹ | DMA 200 | 457 ₹ |
| Chg in FII Hold | -0.11 % | Chg in DII Hold | -0.33 % | PAT Qtr | 904 Cr. | PAT Prev Qtr | 468 Cr. |
| RSI | 28.2 | MACD | -14.4 | Volume | 9,00,945 | Avg Vol 1Wk | 20,92,550 |
| Low price | 365 ₹ | High price | 540 ₹ | PEG Ratio | 0.23 | Debt to equity | 0.23 |
| 52w Index | 3.74 % | Qtr Profit Var | 528 % | EPS | 29.2 ₹ | Industry PE | 21.6 |
📊 Financial Overview:
APOLLOTYRE shows moderate fundamentals with quarterly PAT at ₹904 Cr., a sharp rise from ₹468 Cr., reflecting strong earnings momentum. ROCE at 15.6% and ROE at 16.6% indicate decent capital efficiency. Debt-to-equity at 0.23 is manageable, ensuring financial stability. EPS stands at ₹29.2, supported by profitability. Cash flows appear healthy given strong profit growth, though margins remain cyclical in nature.
💹 Valuation Indicators:
The stock trades at a P/E of 12.6, well below the industry average of 21.6, suggesting undervaluation. P/B ratio is ~2.0 (372 ÷ 187), which is reasonable. PEG ratio of 0.23 indicates attractive valuation relative to growth prospects. Dividend yield of 1.34% adds investor appeal. Intrinsic value appears higher than current price, making the stock undervalued.
🏢 Business Model & Advantage:
APOLLOTYRE operates in the automotive and tyre industry, benefiting from demand in passenger and commercial vehicles. Its competitive advantage lies in brand strength, global presence, and diversified product offerings. Institutional sentiment is cautious, with FIIs (-0.11%) and DIIs (-0.33%) reducing holdings despite strong profit growth.
📈 Entry Zone:
Technically, support lies near ₹365 (recent low) and resistance near ₹418 (50 DMA). A favorable entry zone would be between ₹365–₹380 if the stock consolidates. Long-term investors may hold given undervaluation and strong earnings momentum.
Positive
- 📌 Strong quarterly PAT growth (₹904 Cr. vs ₹468 Cr.).
- 📌 Attractive P/E (12.6) compared to industry average (21.6).
- 📌 PEG ratio (0.23) indicates undervaluation relative to growth.
- 📌 Dividend yield of 1.34% adds investor returns.
Limitation
- ⚠️ ROCE (15.6%) and ROE (16.6%) are moderate.
- ⚠️ Institutional investors reduced holdings (FII & DII).
- ⚠️ RSI at 28.2 indicates oversold conditions, reflecting weak sentiment.
Company Negative News
- 📰 Institutional outflows (FII & DII) despite strong profit growth.
Company Positive News
- 📰 Quarterly profits surged significantly, boosting investor sentiment.
- 📰 Dividend yield supports long-term investors.
Industry
- 🌐 Automotive and tyre industry benefits from rising vehicle demand and infrastructure growth.
- 🌐 Industry P/E at 21.6 reflects moderate valuations, while APOLLOTYRE trades at a discount.
Conclusion
✅ APOLLOTYRE is financially stable with strong profit growth, undervaluation, and a healthy dividend yield. While return ratios are moderate and institutional sentiment cautious, the stock offers attractive entry near ₹365–₹380. Long-term holding is supported by industry demand and undervaluation, making it a potential value play.
For deeper insights, you could explore a peer comparison or an automotive sector outlook to complement this analysis.