Large Cap Stock Below Rs 600: Rs 6 Upcoming Dividend; Buy/Sell/Hold Before 5th July?

The most prominent tyre brand in India is Apollo Tyres Ltd., a worldwide tyre producer. The firm operates six production facilities in total, with one each in Hungary and the Netherlands and four in India. The fifth and seventh-ranked tyre company in the world, based in India, sells its products under the worldwide brands Apollo and Vredestein, with distribution in more than 100 nations.

Apollo Tyres Upcoming Dividend

A Dividend of Rs. 6.00 per Equity Share (i.e. 600%) on face value of Re. 1 each was recommended by the Board of Directors at their meeting on May 14, 2024. This recommendation is contingent on the approval of the shareholders at the Company's upcoming AGM to be held on Thursday, July 25, 2024.

"The Dividend on Equity Shares for the year ended March 31, 2024 as recommended by the Board of Directors and declared at the said AGM will be paid within 30 days of the date of AGM to those Shareholders or their mandates: a) Whose names appear as Beneficial Owners as at the end of the business hours on Friday, July 5, 2024 in the list of Beneficial Owners to be furnished by National Securities Depository Limited and Central Depository Services (India) Limited in respect of the shares held in Electronic form; b) Whose names appear as Members in the Register of Members of the Company as at the end of the business hours on Friday, July 5, 2024 in respect of the shares held in physical form," said Apollo Tyres in a regulatory filing.

Apollo Tyres FY24 Performance Highlights

In the March 2024 quarter, Apollo Tyres reported a 14 per cent drop in net profit on a year-on-year (YoY) basis, to Rs 354 crore, from Rs 410.3 crore in the corresponding quarter of FY23. In Q4FY24, revenue from operations was Rs 6,258 crore which remained unchanged. In the fourth quarter of FY24, EBITDA climbed by 3% to Rs 1,028 crore from Rs 998.4 crore during the same period last year. In the reporting quarter, the EBITDA margin was 16.4%, down from 16% in Q4FY23. Overall volumes climbed slightly on a year-on-year basis, aided by double-digit growth in exports and mid-single-digit growth in the replacement business, especially in the TBR (+7%) and PCR (+10%) segments.

"We expect demand momentum to pick up post-general elections. We will continue to focus on business fundamentals, cost control and free cash flow generation," the company said in a note.

Apollo Tyres Share Price Target

KKunal V Parar, VP of Technical Research and Algo at Choice Broking said, "On the daily chart, the stock has recently broken out of a Triangle formation with above-average volume, signalling a potential upward movement. Furthermore, the stock has been consistently trading above its 50-day moving average, indicating a positive trend and suggesting further potential upside. On the hourly chart, the stock is displaying an upward-rising channel formation, reinforcing the current positive trend."

"The daily Relative Strength Index (RSI), a momentum indicator, is trending above the 50 mark, indicating strong positive momentum in the stock. Based on this technical analysis, we anticipate a significant upside potential in the stock, targeting levels between 540 to 568, with a strict stop-loss at 490.00," the analyst predicted.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.