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APOLLOTYRE - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.7

Last Updated Time : 03 Feb 26, 05:01 pm

Technical Rating: 3.7

Stock Code APOLLOTYRE Market Cap 30,653 Cr. Current Price 483 ₹ High / Low 540 ₹
Stock P/E 39.8 Book Value 170 ₹ Dividend Yield 1.04 % ROCE 9.80 %
ROE 6.28 % Face Value 1.00 ₹ DMA 50 506 ₹ 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 39.1 MACD -4.41 Volume 1,31,114 Avg Vol 1Wk 6,40,011
Low price 368 ₹ High price 540 ₹ PEG Ratio 1.06 Debt to equity 0.31
52w Index 66.5 % Qtr Profit Var 66.8 % EPS 12.2 ₹ Industry PE 28.3

📈 Technical Analysis

  • Chart Patterns: Price (483 ₹) is below 50 DMA (506 ₹) but slightly above 200 DMA (489 ₹), showing mixed signals.
  • Moving Averages: Short-term weakness but long-term support intact.
  • RSI: At 39.1, approaching oversold territory, potential rebound signal.
  • MACD: Negative (-4.41), bearish crossover persists.
  • Bollinger Bands: Price near lower band, support seen around 480–490 ₹.
  • Volume Trends: Current volume (1.31L) is far below 1-week average (6.40L), showing weak participation.

🎯 Momentum & Trade Zones

  • Support Levels: 480–490 ₹ (near Bollinger lower band), 368 ₹ (recent low).
  • Resistance Levels: 506 ₹ (50 DMA), 520–540 ₹ (psychological barrier and recent high).
  • Entry Zone: 475–490 ₹ (accumulation near support).
  • Exit Zone: 505–525 ₹ (profit booking near resistance).
  • Trend: Consolidating with bearish bias; reversal possible if price sustains above 506–520 ₹.

✅ Positive

  • Dividend yield of 1.04% provides shareholder returns.
  • EPS at 12.2 ₹ supports valuation strength.
  • Quarterly PAT improved (279 Cr. vs 223 Cr.), showing earnings growth.
  • FII holdings increased (+0.36%), reflecting foreign investor confidence.
  • 52-week index return of 66.5% highlights strong long-term performance.

⚠️ Limitation

  • Stock trading below 50 DMA, reflecting short-term weakness.
  • High P/E (39.8) compared to industry average (28.3), suggesting overvaluation.
  • ROE (6.28%) remains modest relative to valuation multiples.
  • Volume participation is weak, reducing conviction in price moves.

📉 Company Negative News

  • DII holdings decreased (-0.04%), showing reduced domestic institutional confidence.
  • MACD remains negative, reflecting weak momentum.

📊 Company Positive News

  • Quarterly PAT improved significantly (279 Cr. vs 223 Cr.).
  • FII holdings increased (+0.36%), reflecting foreign support.
  • Dividend yield of 1.04% provides consistent shareholder returns.

🏭 Industry

  • Industry P/E at 28.3, lower than company’s 39.8, suggesting sector peers may be more attractively priced.
  • Automobile and tyre sector demand remains steady, driven by replacement cycles and infrastructure growth.

📝 Conclusion

  • APOLLOTYRE is consolidating with bearish bias but supported by strong fundamentals and earnings growth.
  • Optimal entry near 475–490 ₹ with exit around 505–525 ₹.
  • Strong long-term returns and dividend yield make it attractive, but high valuation and weak short-term technicals limit upside.
  • Medium-term investors should wait for breakout above 506–520 ₹ to confirm reversal trend.

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