APOLLOTYRE - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 3.6

📊 APOLLOTYRE shows moderate potential for swing trading. The RSI at 38.4 suggests the stock is approaching oversold territory, which could trigger a rebound. The MACD (-2.53) indicates mild bearish momentum. The price is near the 50 DMA (508 ₹) and above the 200 DMA (484 ₹), showing medium-term strength despite short-term weakness. Optimal entry would be near 495–505 ₹, close to support levels. If already holding, consider exiting near 530–540 ₹, where resistance from recent highs exists.

✅ Positive

• 📈 Quarterly profit growth (+66.8%) highlights strong earnings momentum.
• 💹 DII holdings increased (+0.39%), showing domestic investor confidence.
• 📊 52-week gain of 77% reflects strong long-term investor interest.
• 💰 Dividend yield of 1.03% provides shareholder returns.

⚠️ Limitation

• 📉 High P/E (41.5) compared to industry average (31.0), suggesting stretched valuation.
• 📉 ROCE (9.80%) and ROE (6.28%) show modest efficiency.
• 📉 FII holdings decreased (-0.37%), reflecting reduced foreign investor interest.
• 📉 Debt-to-equity ratio of 0.31 adds financial risk.

🚨 Company Negative News

Valuation remains stretched with a high P/E ratio. Technical indicators show mild bearishness with negative MACD. Efficiency ratios (ROCE, ROE) are modest, and foreign investors reduced holdings.

🌟 Company Positive News

Quarterly profits surged (+66.8%), showing strong operational performance. Domestic institutional investors increased holdings, signaling confidence. Dividend yield provides shareholder returns, and long-term performance remains strong with a 77% gain over the past year.

🏭 Industry

The auto and tyre industry trades at an average P/E of 31.0, while APOLLOTYRE trades at 41.5, making it relatively expensive compared to peers. Sector demand remains steady, supporting medium-term opportunities despite valuation concerns.

📌 Conclusion

APOLLOTYRE is a moderate candidate for swing trading. Entry near 495–505 ₹ offers a favorable risk-reward setup. Exit strategy should target 530–540 ₹, with potential upside if momentum strengthens. Traders should remain cautious due to stretched valuations and modest efficiency ratios but can benefit from strong earnings growth and sector support.

I can also outline a stop-loss level around 480 ₹ to help manage downside risk more effectively.