Buy Mid Cap Dividend Tyres Stock As Shares Likely To Rally, TP Rs 563: 3 Analysts Bullish

3 Analysts appear bullish on mid cap Tyres sector stock Apollo Tyres with maximum target price of Rs 563. Current market price of Apollo Tyres Ltd share on BSE is Rs 484.00 per share with intraday gain of 2.10%. Apollo Tyres share today zoomed nearly 7% and 2% in last 1-week. In last 1-year, Apollo Tyres shares gave return of 33% and 131% in last 2-year. The board of directors of Apollo Tyres recommended Rs 6 per share dividend on May 14, 2024. Sharekhan has recommended traders to buy Apollo Tyres share with target price of Rs 563 apiece. More details below:

Apollo Tyres Q4: The company's consolidated profit declined 13.7% to Rs 354 crore from the net profit reported an year ago. Its total expenses increased nearly 80% for the March 2024 quarter to Rs 209 crore. Revenue from operations zoomed 0.17% to Rs 6,258 crore. The company's total expense declined 0.5%. For the whole year, it announced a consolidated net profit of Rs 1,722 crore, up 65% as against Rs 1046 crore in the previous financial year. Its consolidated revenue from operations surged by nearly 3% to touch 25,378 crore as against Rs 24,568 crore reported in FY 2023.

Apollo Tyres Recommends Dividend: The company issued a BSE filing as on May 14, 2024, "Recommended the Dividend of Rs. 6.00 per Equity Share (i.e. 600%) on face value of Re. 1 each for FY24, subject to the approval of the Shareholders at the ensuing AGM of the Company, which shall be paid/ dispatched on or before 30 days from the conclusion of the AGM."

Apollo Tyres Share Performance & Return: The 52-week high price of Apollo Tyres shares on BSE is Rs 559.85 per share (as on 08/02/2024) and 52-week low price is Rs 360.80 per share (as on 19/05/2023). The company's market capitalisation is Rs 31,031.03 crore. Apollo Tyres shares gave return of 14% in last 6-months, gave return of 134% in last 3-years, and rallied 177% in last 5-years.

Buy, Neutral, and Equal Weight Call: 3 leading analysts appear upbeat on Apollo Tyres and recommended buy, neutral, and equal weight rating. According to Sharekhan, "we maintain BUY on the stock with a revised TP of Rs. 563 in expectation of sustenance of high-margin trajectory, continuation of the premiumization trend in its model mix, and a healthy market share gain in the European business. The stock trades at a P/E of 14.3x and EV/EBITDA multiple of 6.9x its FY2026E."

Nomura has also upgraded target price of Apollo Tyres shares to a neutral rating with a target price of Rs 512 per share. Morgan Stanley has recommended an equal-weight rating for Apollo Tyres share with a target price of Rs 472 per share.

About: Apollo Tyres Ltd is an international tyre manufacturer and the leading tyre brand in India. It is built around the core principles of creating stakeholder value through reliability in its products and dependability in its relationships. The company has a total of six manufacturing units -- 4 in India and 1 each in the Netherlands and Hungary. India's fifth and 7th globally, is coming up in Andhra Pradesh, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Sharekhan, Nomura, and Morgan Stanley. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.