Buy Apollo Tyres, target price Rs 345: Emkay Global

Emkay Global has buy call on Apollo Tyres with a target price of Rs 345. The current market price of Apollo Tyres Ltd. is Rs 282.6.

Apollo Tyres Ltd., incorporated in the year 1972, is a Mid Cap company (having a market cap of Rs 18906.96 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 30-09-2022, the company reported a Consolidated Total Income of Rs 5962.90 Crore, up .17 % from last quarter Total Income of Rs 5952.61 Crore and up 16.78 % from last year same quarter Total Income of Rs 5106.21 Crore. Company reported net profit after tax of Rs 194.35 Crore in latest quarter.

Investment Rationale
The brokerage maintains BUY rating, with a revised TP of Rs345/share (Rs325 earlier), applying 13x Dec-24E EPS (Sep-24E earlier). Key downside risks: Lower-than-expected demand in key geographies, higher competitive intensity and adverse movement in currency/commodity prices.

Promoter/FII Holdings
Promoters held 37.34 per cent stake in the company as of 30-Sep-2022, while FIIs owned 24.72 per cent, DIIs 17.74 per cent.