Apollo Tyres Ltd’s fundamental analysis highlights key financial metrics including market capitalization of ₹33,260.24 crore, PE ratio of 19.32, debt-to-equity ratio of 35.28, and return on equity of 13%. These figures reflect the company’s financial health and current market valuation.
Content:
- Apollo Tyres Ltd Overview
- Apollo Tyres Financial Results
- Apollo Tyres Financial Analysis
- Apollo Tyres Ltd Company Metrics
- Apollo Tyres Limited Stock Performance
- Apollo Tyres Ltd Peer Comparison
- Apollo Tyres Shareholding Pattern
- Apollo Tyres History
- How To Invest In Apollo Tyres Ltd Share?
- Apollo Tyres Limited Fundamental Analysis – FAQs
Apollo Tyres Ltd Overview
Apollo Tyres Ltd is an Indian company engaged in the manufacturing and sale of automotive tyres. It operates in the automotive sector, specifically in the tyre manufacturing industry, catering to various vehicle segments.
The company has a market capitalization of ₹33,260.24 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 8.47% below its 52-week high and 43.48% above its 52-week low.
Apollo Tyres Financial Results
Apollo Tyres showcased solid growth in FY 24, with sales increasing to ₹25,378 crores from ₹24,568 crores in FY 23, and operating profit rising to ₹4,447 crores. The company maintained a healthy operating profit margin (OPM) of 18%, reflecting operational efficiency.
1. Revenue Trend: Sales rose from ₹24,568 crores in FY 23 to ₹25,378 crores in FY 24, indicating a steady and consistent growth trajectory, demonstrating the company’s ability to expand its market presence.
2. Equity and Liabilities: Equity capital remained at ₹63.51 Cr, while total liabilities decreased slightly from ₹27,359 crores in FY 23 to ₹26,957 crores in FY 24. This stability highlights effective financial management and a balanced equity structure.
3. Profitability: Net Profit significantly increased to ₹1,722 crores in FY 24 from ₹1,105 crores in FY 23, marking a substantial improvement in profitability, which reflects the company’s efficient cost management and revenue growth.
4. Earnings per Share (EPS): EPS improved from ₹17.39 in FY 23 to ₹27.11 in FY 24, showcasing a notable rise in shareholder returns, driven by higher net profits and operational gains.
5. Return on Net Worth (RoNW): The increase in reserves to ₹13,839 crores suggests a potential improvement in RoNW, supported by higher profitability and stronger equity positions.
6. Financial Position: Total assets slightly declined to ₹26,957 crores in FY 24 from ₹27,359 crores in FY 23, with a minor reduction in liabilities, indicating prudent financial management and stable asset utilization.
Apollo Tyres Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 25,378 | 24,568 | 20,948 |
| Expenses | 20,930 | 21,254 | 18,373 |
| Operating Profit | 4,447 | 3,314 | 2,574 |
| OPM % | 18 | 13 | 12 |
| Other Income | 76 | 64 | 118 |
| EBITDA | 4,601 | 3,355 | 2,698 |
| Interest | 506 | 531 | 444 |
| Depreciation | 1,478 | 1,419 | 1,400 |
| Profit Before Tax | 2,540 | 1,427 | 848 |
| Tax % | 32 | 23 | 25 |
| Net Profit | 1,722 | 1,105 | 639 |
| EPS | 27.11 | 17.39 | 10.06 |
| Dividend Payout % | 22.13 | 25.88 | 32.31 |
* Consolidated Figures in Rs. Crores
Apollo Tyres Ltd Company Metrics
Apollo Tyres’ market cap is ₹33,260.24 crore with a book value of ₹219 per share. The face value per share is ₹1. Total debt is ₹4,905.1 crore, ROE is 13%, and quarterly EBITDA is ₹1,065.62 crore. Dividend yield stands at 1.15%.
- Market Capitalization:
Market Capitalization represents the total market value of Apollo Tyres’ outstanding shares, amounting to ₹33,260.24 crore.
- Book Value:
The book value per share of Apollo Tyres Ltd is ₹219 indicating the value of the company’s net assets divided by its shares outstanding.
- Face Value:
The face value of Apollo Tyres’ shares is ₹1, which is the nominal value of each share as stated on the share certificate.
- Asset Turnover Ratio:
The Asset Turnover Ratio of 0.94 measures how efficiently Apollo Tyres uses its assets to generate sales revenue or sales income.
- Total Debt:
The Total Debt of Apollo Tyres stands at ₹4,905.1 crore, representing the total amount of money the company owes to creditors.
- Return on Equity (ROE):
The ROE of 13% measures Apollo Tyres’ profitability by revealing how much profit the company generates with the money shareholders have invested.
- EBITDA (Q):
The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Apollo Tyres is ₹1,065.62 crore, indicating the company’s operating performance.
- Dividend Yield:
The dividend yield of 1.15% shows the annual dividend payment as a percentage of Apollo Tyres’ current share price, indicating the return on investment from dividends alone.
Apollo Tyres Limited Stock Performance
Apollo Tyres Ltd has achieved a 1-year return on investment of 23.5%, a 3-year return of 29.9%, and a 5-year return of 24.8%. These returns demonstrate the company’s consistent performance and strong growth potential for long-term investors.
| Period | Return on Investment (%) |
| 1 Year | 23.5 |
| 3 Years | 29.9 |
| 5 Years | 24.8 |
Example: If an investor had invested ₹1,000 in Apollo Tyres’ stock:
1 year ago, their investment would be worth ₹1,235.
3 years ago, their investment would have grown to ₹1,299.
5 years ago, their investment would have increased to approximately ₹1,248.
Apollo Tyres Ltd Peer Comparison
Apollo Tyres Ltd, with a current market price of ₹491 and a market cap of ₹31,171 crore, demonstrates strong performance with a 1-year return of 24%, P/E of 19.32, ROE of 13%, EPS of ₹26, ROCE of 16.45%, and a dividend yield of 1.22%. Competitors include MRF, Balkrishna Industries, CEAT, JK Tyre, TVS Srichakra, and Goodyear India, showing varied market metrics and returns.
| Name | CMP Rs. | Mar Cap Rs.crores. | P/E | ROE % | EPS 12M Rs. | 1Yr return % | ROCE % | Div Yld % |
| MRF | 1,38,316 | 58,646 | 28 | 13 | 4,865 | 29 | 16 | 0.15 |
| Balkrishna Inds | 2,835 | 54,798 | 34 | 18 | 84 | 20 | 18 | 0.55 |
| Apollo Tyres | 491 | 31,171 | 19 | 13 | 26 | 24 | 16.45 | 1.22 |
| CEAT | 2,672 | 10,807 | 16 | 18 | 161 | 20.58 | 20.42 | 1.09 |
| JK Tyre & Indust | 404 | 10,535 | 12 | 21 | 33 | 52 | 19 | 1.11 |
| TVS Srichakra | 4,154 | 3,182 | 32 | 11 | 122 | 40 | 10.94 | 0.77 |
| Goodyear India | 1,191 | 2,748 | 29 | 16 | 41 | -11 | 21.98 | 1.26 |
Apollo Tyres Shareholding Pattern
Apollo Tyres Ltd shows a shareholding pattern as of June 2024 with promoters holding 37.36%, FII at 14.46%, DII at 25.12%, and retail & others at 23.05%. This indicates a stable promoter holding and a notable presence of institutional investors over recent quarters.
| All values in % | Jun-24 | Mar-24 | Dec-23 |
| Promoters | 37.36 | 37.36 | 37 |
| FII | 14.46 | 18.16 | 17.96 |
| DII | 25.12 | 21.99 | 22.02 |
| Retail & others | 23.05 | 22.5 | 22.67 |
Apollo Tyres History
Apollo Tyres Limited is a leading manufacturer and seller of automotive tyres, operating primarily in the automobile tyres, tubes, and flaps segment. The company has established a significant presence across various geographical regions, including Asia Pacific, Middle East, Africa (APMEA), Europe, and other markets.
The company caters to diverse consumer segments through its two main brands: Apollo and Vredestein. The Apollo brand offers a wide range of tyres for commercial vehicles, passenger vehicles, two-wheelers, farm equipment, and industrial applications. Vredestein, on the other hand, specializes in car tyres, agricultural and industrial tyres, and bicycle tyres.
Apollo Tyres has a comprehensive product portfolio that covers the entire spectrum of automotive tyres. This includes tyres for passenger cars, SUVs, MUVs, light trucks, truck-bus, two-wheelers, agriculture, industrial, specialty, and off-the-road vehicles. The company also provides retreading materials and tyres. In India, Apollo Tyres operates five manufacturing plants, strategically located in Cochin, Vadodara, Chennai, and Andhra Pradesh.
How To Invest In Apollo Tyres Ltd Share?
To invest in Apollo Tyres Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Apollo Tyres shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Apollo Tyres Limited Fundamental Analysis – FAQs
Fundamental analysis of Apollo Tyres Ltd examines key financial metrics: Market Cap (₹33,260.24 crore), PE Ratio (19.32), Debt to Equity (35.28), and Return on Equity (13%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the tyre manufacturing sector.
The market capitalization of Apollo Tyres is ₹33,260.24 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Apollo Tyres Limited is an Indian multinational company engaged in the manufacturing and sale of automotive tyres. It offers a wide range of tyres for various vehicle segments, including passenger cars, commercial vehicles, and two-wheelers, under brands like Apollo and Vredestein.
Apollo Tyres is a public limited company, with the Kanwar family as the promoters. Onkar Kanwar is the Chairman and Managing Director. While the promoter group holds a significant stake, it is a listed company with multiple shareholders including institutional investors and public shareholders.
The main shareholders of Apollo Tyres Ltd typically include the Kanwar family (promoter group) as major stakeholders, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Apollo Tyres operates in the automotive industry, specifically in the tyre manufacturing sector. The company specializes in producing a wide range of tyres for various vehicle types, including passenger cars, commercial vehicles, two-wheelers, and off-road vehicles.
To invest in Apollo Tyres shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Apollo Tyres is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
