APOLLOTYRE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.7

Here’s a detailed breakdown of Apollo Tyres Ltd (APOLLOTYRE)

🧾 Core Financials

Profitability & Growth

PAT declined slightly QoQ from ₹144 Cr to ₹223 Cr, but the -1.27% variation suggests earnings volatility.

EPS: ₹10.4 — modest for its market cap.

ROE: 6.28% and ROCE: 9.80% — below industry benchmarks, indicating moderate capital efficiency.

Debt & Liquidity

Debt-to-equity: 0.32 — manageable, but higher than ideal for cyclical sectors.

Dividend Yield: 1.03% — adds some income value for investors.

📊 Valuation Indicators

Metric Value Industry Avg Remarks

P/E Ratio 46.6 33.2 Overvalued

P/B Ratio ~2.88 ~2.5 Slight premium to book value

PEG Ratio 1.24 ~1 Fairly valued relative to growth

Intrinsic Value ~₹420–₹450 — Slightly overvalued

Valuation is moderately stretched, with P/E above industry and PEG slightly above 1.

🏢 Business Model & Competitive Edge

Core Operations: Manufacturing and distribution of tyres for passenger, commercial, and off-road vehicles.

Strengths

Strong brand presence in India and Europe.

Diversified product portfolio and global footprint.

Risks

Low ROE and ROCE suggest margin pressure.

FII outflows (-1.16%) may reflect valuation concerns or sector rotation.

📉 Technical & Entry Zone

Current Price: ₹484

DMA 50/200: ₹466 / ₹463 — trading above key averages.

RSI: 61.7 — nearing overbought.

MACD: 7.02 — bullish momentum.

Suggested Entry Zone: ₹420–₹450 range, ideally near intrinsic value or 52-week low of ₹368.

🕰️ Long-Term Holding Guidance

Hold if already invested, especially for exposure to auto sector recovery.

Consider fresh entry on dips below ₹450.

Ideal for long-term only if

ROE improves above 10%.

PAT growth sustains above 15% CAGR and PEG drops below 1.

Would you like a peer comparison with MRF or a breakdown of Apollo’s export revenue and OEM partnerships?

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