Apollo Tyres Ltd. (APOLLOTYRE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

CEAT

JK Tyre & Indust

Apollo Tyres

MRF

TVS Srichakra

Goodyear India

Tolins Tyres

Balkrishna Inds

Indag Rubber

Modi Rubber

Emerald Tyre

Why is Apollo Tyres Ltd. ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.40 times

Healthy long term growth as Net Sales has grown by an annual rate of 12.01% and Operating profit at 25.12%

With ROCE of 11.3, it has a Attractive valuation with a 1.9 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.93%, its profits have fallen by -25.8%

High Institutional Holdings at 41.4%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Apollo Tyres should be less than 10%
Overall Portfolio exposure to Tyres & Rubber Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tyres & Rubber Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Apollo Tyres for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Apollo Tyres

-3.52%

-0.13

26.41%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.01%

EBIT Growth (5y)

25.12%

EBIT to Interest (avg)

4.44

Debt to EBITDA (avg)

1.92

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

1.20

Tax Ratio

31.00%

Dividend Payout Ratio

22.13%

Pledged Shares

0.05%

Institutional Holding

41.40%

ROCE (avg)

10.91%

ROE (avg)

9.00%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.15

EV to EBIT

17.11

EV to EBITDA

10.06

EV to Capital Employed

1.93

EV to Sales

1.38

PEG Ratio

Dividend Yield

0.95%

ROCE (Latest)

11.27%

ROE (Latest)

7.24%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.29 times

OPERATING PROFIT TO INTEREST(Q)

Highest at 10.10 times

PAT(Q)

At Rs 378.38 cr has Grown at 44.4% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 1,020.74 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 14.94%

PBT LESS OI(Q)

At Rs 536.38 cr has Grown at 35.4% (vs previous 4Q average

-8What is not working for the Company

PAT(9M)

At Rs 784.61 cr has Grown at -22.27%

ROCE(HY)

Lowest at 11.19%

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.15 times

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Here's what is working for Apollo Tyres

Operating Profit to Interest - Quarterly

Highest at 10.10 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit After Tax (PAT) - Quarterly

At Rs 378.38 cr has Grown at 44.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 261.97 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debt-Equity Ratio - Half Yearly

Lowest at 0.29 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Profit (PBDIT) - Quarterly

Highest at Rs 1,020.74 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 14.94%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 536.38 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 536.38 cr has Grown at 35.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 396.02 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 378.38 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Apollo Tyres

Debtors Turnover Ratio- Half Yearly

Lowest at 8.15 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 29.74 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income