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Apollo Tyres Hits Highest Level Since April 2018 On Q2 Profit Beat

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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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