Apollo Tyres Q4 Review: Underperforms Peers, Corrective Measures In Place, Says Motilal Oswal— Maintains 'Buy'

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Apollo Tyres Ltd. has underperformed peers in FY25. However, it is implementing corrective measures to address this and is confident of improving its performance from Q1 FY26 onward.

After a weak performance in FY25, which was largely impacted by a sharp rise in input costs, we expect Apollo Tyres’ margins to gradually revive, aided by softening costs and its focus on premiumization. We have factored in Apollo Tyres’ margins to improve by 130 bp over our forecast period, driving a 25% PAT CAGR over a corrected base.

Valuations at 15.6x FY27E appear attractive, especially when compared to peers. We reiterate our Buy rating on Apollo Tyres with a target price of Rs 554 (valued at 18 times FY27E consolidated earnings per share).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.