Shares of Apollo Tyres Ltd. surged to their highest levels since April 2018 after its second-quarter profit beat analysts' estimates.
The Gurugram-based company's net profit rose 12% year-on-year to Rs 194.4 crore in the quarter ended September, according to its exchange filing. That compares with the Bloomberg consensus analysts' estimate of Rs 173 crore.
Key Highlights Q2FY23 (Consolidated, YoY)
Revenue up 17% at Rs 5,956 crore, compared with Bloomberg estimate of Rs 6,027 crore.
Ebitda up 11% at Rs 712 crore.
Ebitda margin 12% versus 12.6%
Net profit up 12% at Rs 194.5 crore, compared with Bloomberg estimate of Rs 173 crore.
Shares of the company gained 6.4% to Rs 303.6 apiece as of 10:10 a.m. while the benchmark Nifty 50 eased 0.12% on the NSE. It had risen to Rs 307.25, its highest level since April 17, 2018.
Motilal Oswal maintained a 'buy' rating on the stock, stating that in line with estimated operating performance and a lower tax outgo, led to a profit beat for the company.
Of the 32 analysts tracking Apollo Tyres, 24 maintain a 'buy', one suggests a 'hold' and seven recommend a 'sell', according to Bloomberg data. The 12-month consensus price target implies a downside of 1%.
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