Apollo Tyres Gains 2.51%: Four Key Factors Driving the Week’s Momentum

Feb 07 2026 05:10 PM IST
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Apollo Tyres Ltd. closed the week with a 2.51% gain, outperforming the Sensex’s 1.51% rise, despite a volatile trading week marked by mixed technical signals and a record quarterly performance. The stock oscillated between short-term consolidation and renewed bullish momentum, reflecting investor caution amid strong operational results and evolving market dynamics.

Key Events This Week

2 Feb: Stock opens lower at Rs.482.65 amid broad market weakness

3 Feb: Technical momentum shifts to sideways with mixed indicators

4 Feb: Record quarterly results announced, stock rallies to Rs.512.40

5-6 Feb: Mild profit-taking leads to slight declines, week closes at Rs.504.40

Week Open
Rs.492.05
Week Close
Rs.504.40
+2.51%
Week High
Rs.512.40
vs Sensex
+1.00%

2 February: Weak Start Amid Market Sell-Off

Apollo Tyres began the week on a cautious note, closing at Rs.482.65, down 1.91% from the previous Friday’s close of Rs.492.05. This decline was in line with the broader market, as the Sensex fell 1.03% to 35,814.09. The stock’s volume was moderate at 38,811 shares, reflecting subdued investor interest amid a general risk-off sentiment. The price remained comfortably above its 52-week low of Rs.368.00 but well below the 52-week high of Rs.540.30, signalling a consolidation phase.

3 February: Technical Momentum Shifts to Sideways

On 3 February, Apollo Tyres rebounded sharply, gaining 4.62% to close at Rs.504.95, outperforming the Sensex’s 2.63% gain. This move coincided with a technical momentum shift from mildly bullish to sideways, as mixed signals emerged from key indicators. Daily moving averages suggested some short-term strength, but weekly and monthly MACD and KST indicators showed mild bearishness, indicating a consolidation rather than a clear uptrend. The stock traded within a range of Rs.475.00 to Rs.487.80 earlier in the week, but the strong close above Rs.500 marked renewed buying interest.

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4 February: Record Quarterly Results Spark Rally

The stock surged further on 4 February, closing at Rs.512.40, up 1.48% from the previous day’s close. This rally was driven by the announcement of Apollo Tyres’ strongest quarterly performance to date for the December 2025 quarter. The company reported record net sales of Rs.7,743.08 crores and a PBDIT of Rs.1,185.94 crores, with operating margins expanding to 15.32%. Net profit after tax rose to Rs.488.18 crores, with earnings per share reaching Rs.7.41, the highest quarterly EPS recorded. These robust results underscored operational efficiency and margin improvement despite a flat overall financial trend.

Despite the positive earnings surprise, some caution was warranted as return on capital employed declined to 11.19%, and debtor turnover slowed to 8.15 times, indicating potential working capital pressures. The stock’s technical momentum also showed mixed signals, with daily moving averages turning mildly bullish but weekly MACD and KST remaining bearish. The Mojo Grade remained at Hold with a score of 65.0, reflecting this nuanced outlook.

5-6 February: Mild Profit-Taking and Consolidation

Following the strong gains, Apollo Tyres experienced mild profit-taking on 5 and 6 February. The stock closed at Rs.507.55 on 5 February, down 0.95%, and further declined 0.62% to Rs.504.40 on 6 February. Trading volumes peaked on 5 February at 203,774 shares, indicating active repositioning by investors. The Sensex showed mixed performance, falling 0.53% on 5 February but recovering slightly by 0.10% on 6 February. Despite the slight pullback, Apollo Tyres outperformed the benchmark over the week, closing above its opening price and maintaining a positive weekly return.

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Date Stock Price Day Change Sensex Day Change
2026-02-02 Rs.482.65 -1.91% 35,814.09 -1.03%
2026-02-03 Rs.504.95 +4.62% 36,755.96 +2.63%
2026-02-04 Rs.512.40 +1.48% 36,890.21 +0.37%
2026-02-05 Rs.507.55 -0.95% 36,695.11 -0.53%
2026-02-06 Rs.504.40 -0.62% 36,730.20 +0.10%

Key Takeaways

Positive Signals: Apollo Tyres demonstrated resilience by outperforming the Sensex with a 2.51% weekly gain. The record quarterly results highlighted strong operational efficiency, margin expansion to 15.32%, and a robust net profit of Rs.488.18 crores. Daily moving averages turned mildly bullish, supporting short-term momentum. The company’s conservative debt-equity ratio of 0.29 times and high operating profit to interest coverage ratio of 11.85 times underscore financial strength.

Cautionary Signals: Mixed technical momentum with bearish weekly MACD and KST indicators suggests potential short-term volatility. The downgrade of Mojo Grade to Hold reflects this cautious stance. Declining return on capital employed (11.19%) and slower debtor turnover (8.15 times) point to operational challenges that could affect liquidity and capital efficiency. Profit-taking in the latter part of the week indicates investor prudence amid uncertain macroeconomic conditions.

Conclusion

Apollo Tyres Ltd. navigated a week of mixed technical signals and strong fundamental performance, closing with a solid 2.51% gain that outpaced the Sensex’s 1.51% rise. The company’s record quarterly results provided a strong operational backdrop, while technical indicators suggested a consolidation phase with potential for short-term rallies tempered by caution. Investors should monitor key support levels near Rs.485 and resistance around Rs.540 to assess momentum sustainability. The stock’s long-term outperformance and financial discipline remain compelling, though vigilance is warranted given emerging operational pressures and market volatility.

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