Motilal Oswal has given Buy recommendation for Apollo Tyres recommended buy rating on the stock with a target price of Rs 265 in its researc with a target price of Rs. 265 in its research report issued on May 14, 2022

Motilal Oswal’s research report on Apollo Tyres

APTY’s 4QFY22 operating performance was above our estimates. The India business outperformed on all fronts, led by price hikes, while operating margin in the EU business was impacted by higher energy cost. Demand in the India business is expected to remain subdued due to geopolitical risk, commodity cost inflation, and recent rate hike by RBI. Demand in EU will remain strong, but profitability will remain under pressure due to commodity cost inflation. We maintain our FY23/FY24 consolidated EPS estimate and our Buy rating.

Outlook

We maintain our Buy rating with a TP of INR265/share (~12x Jun’24E consolidated EPS).

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