In this stock check, we look at the technical and fundamental outlook for the tyre major Apollo Tyres. The stock has surged over 58 percent in the last 1 year and almost 15 percent in 2024 YTD.
Apollo Tyres stock opened in the green at Rs 559.85 against the previous close of Rs 552.25 on BSE. Later, the stock fell 3.44% from its high to Rs 540.20 on BSE.
Apollo Tyres is trading at ~15x FY25E earnings vs ~7% EPS CAGR during FY24E-FY26E. As against ~6% India volume CAGR over FY24-26E, we expect India EBITDAM/FCF/RoCE to remain steady during the same period, with business remaining exposed to the mean reversion in GM.