Buy Apollo Tyres, target price Rs 300: JM Financial

JM Financial has buy call on Apollo Tyres with a target price of Rs 300. The current market price of Apollo Tyres Ltd. is Rs 186.6. Time period given by analyst is one year when Apollo Tyres Ltd. price can reach defined target.

Apollo Tyres Ltd., incorporated in the year 1972, is a Mid Cap company (having a market cap of Rs 11809.70 Crore) operating in Tyres sector.

Apollo Tyres Ltd. key Products/Revenue Segments include Tyres, Tubes & Flaps, Other Operating Revenue and Scrap for the year ending 31-Mar-2022.



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 brokerage reiterates BUY rating on the stock with TP of INR300. Lifting of anti-dumping duties on Chinese tyres either in India or in US markets Weakness in domestic auto sales, further increase in RM cost and inability to take further price hike are key risks.

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.