⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
APOLLOTYRE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | APOLLOTYRE | Market Cap | 26,671 Cr. | Current Price | 420 ₹ | High / Low | 540 ₹ |
| Stock P/E | 23.9 | Book Value | 170 ₹ | Dividend Yield | 1.19 % | ROCE | 9.80 % |
| ROE | 6.28 % | Face Value | 1.00 ₹ | DMA 50 | 466 ₹ | DMA 200 | 481 ₹ |
| Chg in FII Hold | 0.36 % | Chg in DII Hold | -0.04 % | PAT Qtr | 468 Cr. | PAT Prev Qtr | 279 Cr. |
| RSI | 36.4 | MACD | -18.6 | Volume | 9,01,042 | Avg Vol 1Wk | 18,35,827 |
| Low price | 368 ₹ | High price | 540 ₹ | PEG Ratio | 0.64 | Debt to equity | 0.31 |
| 52w Index | 30.1 % | Qtr Profit Var | 274 % | EPS | 17.3 ₹ | Industry PE | 24.8 |
📊 Financials
- Revenue & Profitability: PAT rose sharply from ₹279 Cr. to ₹468 Cr., showing strong quarterly growth. EPS at ₹17.3 is modest relative to valuation.
- Margins & Returns: ROCE at 9.80% and ROE at 6.28% are weak, reflecting limited efficiency.
- Debt & Liquidity: Debt-to-equity ratio of 0.31 indicates moderate leverage, manageable but worth monitoring.
- Cash Flow: Dividend yield of 1.19% provides steady shareholder returns.
💹 Valuation
- P/E Ratio: 23.9 vs Industry PE of 24.8 — fairly valued compared to peers.
- P/B Ratio: Current price ₹420 vs Book Value ₹170 — ~2.5x book value, reasonable for the sector.
- PEG Ratio: 0.64 — indicates attractive valuation relative to growth.
- Intrinsic Value: Current price is near fair value, offering limited upside but reasonable entry.
🏢 Business Model & Competitive Advantage
- Operates in tyre manufacturing with strong brand presence and diversified product portfolio.
- Moderate debt and consistent dividend policy provide resilience.
- Weak ROCE and ROE limit competitive advantage compared to industry leaders.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹380 – ₹410, near its 52-week low.
- Long-Term Holding: Fundamentals are average, valuations fair. Suitable for cautious accumulation with long-term horizon, but monitor profitability trends.
✅ Positive
- Quarterly PAT growth (+274%) highlights strong earnings momentum.
- Dividend yield of 1.19% provides shareholder returns.
- FII holdings increased by 0.36%, showing foreign investor confidence.
⚠️ Limitation
- Weak ROCE (9.80%) and ROE (6.28%) compared to industry standards.
- Moderate debt-to-equity ratio (0.31) requires monitoring.
- Stock trading below DMA 50 and DMA 200 indicates weak technical momentum.
📉 Company Negative News
- DII holdings declined by 0.04%, showing reduced domestic institutional confidence.
- RSI at 36.4 and MACD negative (-18.6) reflect bearish technical signals.
📈 Company Positive News
- Strong quarterly PAT growth highlights operational improvement.
- FII holdings increased, showing foreign investor confidence.
- Dividend yield supports shareholder value.
🏭 Industry
- Tyre manufacturing sector benefits from automotive demand and infrastructure growth.
- Industry PE at 24.8 is slightly higher than company’s valuation, suggesting fair pricing for APOLLOTYRE.
🔎 Conclusion
APOLLOTYRE shows moderate fundamentals with strong quarterly profit growth and fair valuation, but suffers from weak efficiency and technical weakness. While foreign investors show confidence, domestic institutions remain cautious. Best strategy: accumulate cautiously near ₹380–₹410 and hold for long-term gains, leveraging automotive sector growth.