MarketsMOJO Upgrades Apollo Tyres to 'Hold' Rating, Citing Healthy Growth and Attractive Valuation

Apollo Tyres, a leading player in the tyre and allied industry, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision was based on the company's healthy long-term growth, with an annual operating profit growth rate of 15.30%.
Technically, the stock is currently in a Mildly Bullish range, with the trend improving from Mildly Bearish on November 25, 2024. One key technical factor that supports this upgrade is the Bullish Bollinger Band since November 25, 2024.

In terms of valuation, Apollo Tyres is currently trading at a discount compared to its average historical valuations, making it an attractive option for investors. Its ROCE (Return on Capital Employed) of 13.8 also adds to its appeal.

However, the company did face some negative results in the quarter ending September 2024, with a -29.0% decrease in PAT (Profit After Tax). The operating profit to interest and net sales ratios were also at their lowest during this period.

Despite this, Apollo Tyres still has a high institutional holding of 41.68%, indicating that these investors have better capabilities and resources to analyze the company's fundamentals. In fact, their stake in the company has increased by 0.52% in the previous quarter.

Overall, with its strong long-term growth potential and attractive valuation, Apollo Tyres is a stock worth considering for investors. However, it is important to keep an eye on any future developments and results to make informed investment decisions.