Shares of Apollo Tyres gained 3.5 per cent to Rs 186.4 after the company began construction of its new manufacturing facility in Hungary. The Hungary facility will start production in early 2017 and manufacture Apollo and Vredestein branded tyres to cater to the European market, the company said in a statement.
The Indian tyre maker would be investing Rs 3,450 crore on the Hungary plant.
Apart from the passenger car tyres, the new plant would also manufacture commercial vehicle tyres, domestic brokerage Angel Broking said. The proposed plant would have the capacity to manufacture 5.5 million passenger car tyres and 675,000 truck and bus tyres, it added.
Angel Broking has an accumulate rating on Apollo Tyres stock, with a price target of Rs 197.
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