Sharekhan has given Buy recommendation for Apollo Tyres with a target price of Rs. 290 in its research report issued on Feb 03, 2022
Sharekhan’s research report on Apollo Tyres
Q3FY22 results were mixed, with significant operational improvement in European business, while standalone (Indian) operations suffered due to input cost pressures. ATL is set to benefit from its strategy by deleveraging its balance sheet, capital utilisation of more than 90%, and focus on firm capital allocation and cash management in the medium term. The stock trades at an attractive P/E multiple of 9.4x and EV/EBITDA multiple of 4.7x its FY2023E estimates.
We maintain a Buy on Apollo Tyres Limited (ATL) with an unchanged PT of Rs. 290, led by the company’s strong performance in European business, expected market share gains across segments, and attractive valuations.