Apollo Tyres Shares Decline The Most In 14 Weeks Even As Q4 Profit Beat

Shares of Apollo Tyres Ltd. declined the most in over 14 weeks even as the company's fourth-quarter profit beat analysts' estimates.

The company's profit rose 276.73% year-on-year to Rs 427.4 crore in the quarter ended March, according to an exchange filing, beating analyst estimates of Rs 315.96 crore. The company approved the fixation of the tenure of Onkar Kanwar as chairman for five years, effective from Feb. 1, 2023, to Jan. 31, 2028. It also approved the reappointment of Neeraj Kanwar as managing director and Satish Sharma as whole-time director for five years, from April 1, 2024, to March 31, 2029.

Apollo Tyres Q4 FY23 (Consolidated, YoY)

• Revenue up 11.99% at Rs 6,247.33 crore vs. Rs 5,578.3 crore (Bloomberg estimate: Rs 6,227.97 crore).

• Ebitda is up 59.4% at Rs 998.45 crore vs. Rs 503.3 crore (Bloomberg estimate: Rs 919.30 crore).

• Ebitda margin at 15.98% vs. 11.23% (Bloomberg estimate: 14.8%)

• Net profit up 276.73% at Rs 427.4 crore vs. Rs 113.5 crore (Bloomberg estimate: Rs 315.96 crore).

• The board recommended a final dividend of Rs 4 per share and a special dividend of Rs 0.50 per share, aggregating to Rs 4.50 per share and a total outgo of Rs 285.80 crore.

Shares of Apollo Tyres declined 4.06% to Rs 366.1 apiece as of 10:48 a.m., compared to a 0.10% decline in the benchmark NSE Nifty 50. The stock declined as much as 4.47% intraday, the most in over 14 weeks since Jan. 27.

The total traded volume so far in the day stood at 8.2 times its 30-day average. The relative strength index was 67.2.

Out of the 32 analysts tracking the company, 23 maintain a 'buy' rating, two recommend a 'hold' and seven suggest a 'sell' on the stock, according to Bloomberg data.

The average 12-month consensus price target implies a potential upside of 3%.