MarketsMOJO Upgrades Apollo Tyres Stock to 'Hold' Based on Strong Growth and Attractive Valuation

Apollo Tyres, a leading player in the tyre and allied industry, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on 14th October 2024.
The decision to upgrade the stock to 'Hold' is based on several factors. Firstly, Apollo Tyres has shown healthy long-term growth with its operating profit increasing at an annual rate of 23.08%. This indicates a strong and stable financial performance.

Additionally, the stock is currently in a mildly bullish range and the technical trend has improved from sideways to bullish on 8th October 2024. This is further supported by the fact that the DOW has also been bullish since the same date.

Moreover, Apollo Tyres has an attractive valuation with a ROCE of 17.1 and a 2 Enterprise value to Capital Employed. This means that the stock is trading at a discount compared to its average historical valuations, making it a good investment opportunity.

In the past year, the stock has generated a return of 32.05%, while its profits have risen by 33.7%. This indicates a strong and consistent growth trajectory for the company. The PEG ratio of Apollo Tyres is also at a low 0.6, further supporting its attractive valuation.

It is also worth noting that the company has a high institutional holding of 41.16%. This means that these investors have better capability and resources to analyze the fundamentals of companies, making their investment decisions more reliable.

However, Apollo Tyres did face some negative results in June 2024, with a decrease in PBT LESS OI(Q) at Rs 432.82 crore, a fall of -29.7%, and a decrease in PAT(Q) at Rs 330.83 crore, a fall of -25.4%. The DPR(Y) was also at its lowest at 22.13%. Despite these setbacks, the company has shown strong growth and potential, making it a 'Hold' for investors.