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Apollo Tyres Ltd., incorporated in the year 1972, is a Mid Cap company (having a market cap of Rs 11234.94 Crore) operating in Tyres sector.
Apollo Tyres Ltd. key Products/Revenue Segments include Tyres, Tubes & Flaps, Other Operating Revenue, Others and Scrap for the year ending 31-Mar-2021.
Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 5615.49 Crore, down -1.90 % from last quarter Total Income of Rs 5724.43 Crore and up 10.38 % from last year same quarter Total Income of Rs 5087.57 Crore. Company reported net profit after tax of Rs 113.51 Crore in latest quarter.
Investment Rationale
The stock trades at 17x/10x P/E on FY23E/24E earnings. Near-term stock performance would depend on the movement of crude prices as derivatives form a major portion of RM costs (40%+). The brokerage retains positive view on expectations of a cyclical upturn in the underlying automobile industry and improving free cash flows (avg. Rs13bn/year over FY23E/24E). Reaffirm Buy with a TP of Rs245 (Rs255 earlier), applying 13x Jun’24E EPS.
Promoter/FII Holdings
Promoters held 37.34 per cent stake in the company as of 31-Mar-2022, while FIIs owned 23.51 per cent, DIIs 14.47 per cent.
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