ScoreWhy is Apollo Tyres Ltd. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.23 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 10.43%
3
With a growth in Net Profit of 34.1%, the company declared Very Positive results in Mar 26
- The company has declared positive results for the last 2 consecutive quarters
- OPERATING PROFIT TO INTEREST(Q) Highest at 11.91 times
- DEBT-EQUITY RATIO(HY) Lowest at 0.22 times
- CASH AND CASH EQUIVALENTS(HY) Highest at Rs 1,044.03 cr
4
With ROCE of 11.3, it has a Attractive valuation with a 1.5 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 -23.95%, its profits have risen by 68.4% ; the PEG ratio of the company is 0.2
5
High Institutional Holdings at 41.29%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -23.95% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- 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
-23.95%
-0.92
26.01%
Sensex
-8.52%
-0.65
13.02%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.43%
EBIT Growth (5y)
12.84%
EBIT to Interest (avg)
4.67
Debt to EBITDA (avg)
1.92
Net Debt to Equity (avg)
0.23
Sales to Capital Employed (avg)
1.20
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
22.13%
Pledged Shares
0.01%
Institutional Holding
41.29%
ROCE (avg)
10.91%
ROE (avg)
9.00%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
20
Price to Book Value
1.61
EV to EBIT
11.03
EV to EBITDA
6.92
EV to Capital Employed
1.50
EV to Sales
1.01
PEG Ratio
0.18
Dividend Yield
2.16%
ROCE (Latest)
11.27%
ROE (Latest)
7.24%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend22What is working for the Company
OPERATING PROFIT TO INTEREST(Q)
Highest at 11.91 times
DEBT-EQUITY RATIO(HY)
Lowest at 0.22 times
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 1,044.03 cr
PAT(Q)
Highest at Rs 1,087.10 cr.
EPS(Q)
Highest at Rs 9.93
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Apollo Tyres
Operating Profit to Interest - Quarterly
Highest at 11.91 times and Grown
each quarter in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Profit After Tax (PAT) - Quarterly
At Rs 1,087.10 cr has Grown at 241.6% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 318.20 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Debt-Equity Ratio - Half Yearly
Lowest at 0.22 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Profit After Tax (PAT) - Quarterly
Highest at Rs 1,087.10 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 9.93
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 1,044.03 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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