APOLLOTYRE - Fundamental Analysis: Financial Health & Valuation

📊 Financial Overview: Apollo Tyres presents a stable financial profile with a ROCE of 9.80% and ROE of 6.28%, indicating moderate capital efficiency. The debt-to-equity ratio of 0.32 is manageable for a manufacturing business. EPS stands at ₹10.4, and quarterly PAT rose to ₹223 Cr from ₹144 Cr, although the profit variance of -1.27% suggests some inconsistency. The stock is trading above both DMA 50 and DMA 200, indicating technical strength.

💰 Valuation Metrics: Apollo trades at a P/E of 48.3, significantly above the industry average of 31.3, suggesting overvaluation. The P/B ratio is ~2.99 (₹502 / ₹168), and the PEG ratio of 1.28 indicates fair valuation relative to growth. A dividend yield of 0.99% adds modest income support for investors.

🏢 Business Model & Competitive Edge: Apollo Tyres is a leading tyre manufacturer with a strong presence in passenger, commercial, and off-highway segments. Its global footprint, brand equity, and diversified product portfolio provide resilience. The company benefits from automotive demand and infrastructure growth, though it faces margin pressures from raw material costs and global competition.

📉 Entry Zone: A favorable entry zone lies between ₹460–₹480, near the DMA levels and below recent highs, offering better valuation comfort.

📈 Long-Term Holding Guidance: Apollo Tyres is suitable for long-term investors seeking exposure to automotive and infrastructure-linked manufacturing. Accumulate on dips and monitor margin trends, export performance, and raw material pricing.