APOLLOTYRE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | APOLLOTYRE | Market Cap | 32,096 Cr. | Current Price | 505 ₹ | High / Low | 540 ₹ |
| Stock P/E | 41.6 | Book Value | 170 ₹ | Dividend Yield | 0.99 % | ROCE | 9.80 % |
| ROE | 6.28 % | Face Value | 1.00 ₹ | DMA 50 | 505 ₹ | DMA 200 | 489 ₹ |
| Chg in FII Hold | 0.36 % | Chg in DII Hold | -0.04 % | PAT Qtr | 279 Cr. | PAT Prev Qtr | 223 Cr. |
| RSI | 51.0 | MACD | -4.42 | Volume | 12,16,741 | Avg Vol 1Wk | 7,57,011 |
| Low price | 368 ₹ | High price | 540 ₹ | PEG Ratio | 1.10 | Debt to equity | 0.31 |
| 52w Index | 79.4 % | Qtr Profit Var | 66.8 % | EPS | 12.2 ₹ | Industry PE | 29.2 |
📊 Financials: APOLLOTYRE shows moderate fundamentals with ROCE at 9.80% and ROE at 6.28%, reflecting weak capital efficiency. Quarterly PAT improved from ₹223 Cr. to ₹279 Cr., showing strong earnings growth. Debt-to-equity at 0.31 indicates manageable leverage. EPS of ₹12.2 is modest relative to its market cap of ₹32,096 Cr.
💹 Valuation: The stock trades at a P/E of 41.6, above the industry average of 29.2, suggesting overvaluation. P/B ratio is ~2.97 (505/170), which is moderately expensive compared to peers. PEG ratio of 1.10 indicates valuations are fairly aligned with growth. Dividend yield of 0.99% provides some income support.
🏢 Business Model & Competitive Advantage: APOLLOTYRE operates in the automotive sector, manufacturing tyres for passenger, commercial, and off-road vehicles. Its competitive advantage lies in brand recognition, diversified product portfolio, and strong distribution network. However, profitability metrics remain weak compared to industry leaders.
📈 Entry Zone: Technicals show RSI at 51.0 (neutral) and MACD negative, with price near DMA 50 & 200. Accumulation may be considered near ₹480–500 for long-term investors. Current valuations are slightly stretched, so cautious entry is recommended.
Positive
- Quarterly PAT growth from ₹223 Cr. to ₹279 Cr. (+66.8%).
- FII holdings increased by 0.36%, showing foreign investor interest.
- Strong brand presence in the tyre industry.
Limitation
- Weak ROCE (9.80%) and ROE (6.28%).
- P/E ratio (41.6) above industry average (29.2).
- Dividend yield of 0.99% is modest.
Company Negative News
- DII holdings decreased by -0.04%, showing reduced domestic institutional confidence.
- Weak technical momentum with MACD negative.
Company Positive News
- FII holdings increased (+0.36%), reflecting foreign investor support.
- Quarterly PAT growth highlights operational improvement.
- Strong trading volumes above average indicate investor interest.
Industry
- Automotive sector benefits from rising demand for passenger and commercial vehicles.
- Industry P/E at 29.2 is lower than APOLLOTYRE, showing sector-wide value opportunities.
- Government push for infrastructure and mobility supports long-term demand.
Conclusion
🔎 APOLLOTYRE is financially stable with manageable debt and strong brand presence but faces weak profitability and stretched valuations. Entry near ₹480–500 may be considered for long-term investors. Conservative investors should wait for improved return metrics before committing to long-term holding.