Buy Apollo Tyres, target price Rs 278: ICICI Direct

ICICI Direct has buy call on Apollo Tyres with a target price of Rs 278. The current market price of Apollo Tyres Ltd. is Rs 234. Time period given by analyst is 3 months when Apollo Tyres price can reach defined target.

Apollo Tyres Ltd., incorporated in the year 1972, is a Mid Cap company (having a market cap of Rs 15039.19 Crore) operating in Tyres sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 5087.57 Crore, down -2.49 % from last quarter Total Income of Rs 5217.42 Crore and up 41.02 % from last year same quarter Total Income of Rs 3607.74 Crore. Company reported net profit after tax of Rs 287.25 Crore in latest quarter.


Investment Rationale
The stock has been hovering in the range of Rs 200-230 in the last few months. Despite many attempts, it failed to move in line with the broader markets. However, post results in April, it started witnessing accumulation and finally moved above the higher band of consolidation

Promoter/FII Holdings
Promoters held 40.90 per cent stake in the company as of March 31, 2020, while FIIs held 22.89 per cent, DIIs 18.81 and public and others 17.4 per cent.

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