Apollo Tyres shares jump 7% post Q4 results. Should you buy or sell?

Meanwhile, the company's from operations increased 0.2% to Rs 6,258 crore against Rs 6,247.3 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA increased 3% to Rs 1,028 crore in the fourth quarter of this fiscal over Rs 998.4 crore in the year-ago period. The EBITDA stood at 16.4% in the reporting quarter compared to 16% in the corresponding period in the previous fiscal.

The board has also recommended a of Rs 6 per equity share (i.e. 600%) on the face value of Rs 1 each for FY24, subject to shareholder approval, and will be paid on or before 30 days from the conclusion of the AGM.

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Should you buy or sell Apollo Tyres' stock? Here's what analysts say:


Nomura upgraded to 'Neutral' from a 'Reduce' rating earlier but raised the to Rs 512 from Rs 478 earlier.

The focus is on a favourable mix, and price hikes are likely to support margins. The current valuation does not look expensive given the healthy FCF yield.


Global brokerage firm JPMorgan upgraded the stock to 'Overweight' from its earlier rating of 'Neutral' and also raised its price target on the stock to Rs 555 from Rs 535 earlier.

The brokerage stated in its note that Apollo Tyres continues to demonstrate its commitment towards balance sheet deleveraging and disciplined growth.

It expects the stock to re-rate on the back of a proactive approach to price discipline and a focus on debt reduction.


Morgan Stanley maintained an 'Equal-weight' rating on Apollo Tyres with the reduced target price to Rs 472 from Rs 475 earlier.

The brokerage stated that the Q4 EPR provision costs and weak EU distribution margins drove the miss. Morgan Stanley believes that the domestic tyre industry is showing signs of demand recovery and said that Apollo is executing well on its strategy. “Peak margin keeps us on the sidelines,” said Morgan Stanley.


JM Financial maintained a 'Buy' rating on Apollo Tyres with a target price of Rs 550.

Domestic replacement demand has started picking up from Apr’24. And, overall replacement demand is expected to grow by high single-digit / double-digit during FY25. Demand in the International markets has also started to recover, albeit gradually.

"We have marginally tweaked our FY25/26 estimates to adjust for higher than expected tax rate. Consistent focus on driving profitable growth, deleveraging and improving ROCE is expected to support the stock performance," it said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)