Apollo Tyres Limited. (APOLLOTYRE) AI Stock Analysis

• Market Cap: ₹320.31B
• Dividend Yield: 0.98%
• Average Volume (3M): 63.76K
• Price to Earnings (P/E): 40.4
• Beta (1Y): 1.34
• Revenue Growth: 4.36%
• EPS Growth: -45.33%
• Country: IN
• Employees: 7,559
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 6.90
• Shares Outstanding: 635,100,950
• 10 Day Avg. Volume: 55,314
• 30 Day Avg. Volume: 63,757
• PEG Ratio: -0.69
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 1.03
• P/FCF Ratio: 25.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: ₹551.00 ▲(8.99% Upside)

Apollo Tyres Limited's overall stock score is driven by strong financial performance and a bullish technical trend, despite financial pressures and overbought technical indicators. The high P/E ratio suggests potential overvaluation, which is a concern for investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and demand for products, supporting long-term business sustainability.

Operational Margins

Strong operational margins suggest effective cost control and production efficiency, enhancing profitability and competitive advantage.

Stable Equity Position

A stable equity position provides financial resilience, enabling the company to withstand economic fluctuations and invest in growth opportunities.

Negative Factors

Declining Net Profit Margins

Declining net profit margins can erode profitability, indicating potential challenges in managing costs and maintaining competitive pricing.

High Leverage

High leverage increases financial risk, potentially limiting flexibility in funding operations and investments, impacting long-term stability.

Reduced Free Cash Flow

Reduced free cash flow can constrain the company's ability to invest in growth initiatives and manage unexpected expenses, affecting future expansion.

Apollo Tyres Limited. Business Overview & Revenue Model

Company Description

Apollo Tyres Limited manufactures and sells automotive tires, tubes, and flaps in the Asia Pacific, the Middle East, Africa, Europe, and internationally. It offers passenger car, sports utility vehicle, multi utility vehicle, light truck, truck-bus, agriculture, industrial, specialty, bicycle, off highway, and two-wheeler tires; retreading materials and tires; and alloy wheels. The company provides its products under the Apollo and Vredestein brands. Apollo Tyres Limited was incorporated in 1972 and is headquartered in Gurugram, India.

How the Company Makes Money

Apollo Tyres generates revenue primarily through the sale of tires across various segments such as passenger cars, trucks, buses, and two-wheelers. Its revenue model is based on a combination of direct sales through a network of dealerships and distributors, as well as exports to international markets. Key revenue streams include the sale of both original equipment tires (OEM) and replacement tires. Additionally, the company has established significant partnerships with automobile manufacturers, which contribute to steady demand for its products. Factors such as market trends in the automotive industry, the introduction of new tire technologies, and a focus on sustainability also play a crucial role in driving its earnings.

Apollo Tyres Limited. Financial Statement Overview

Summary

Apollo Tyres Limited shows strong revenue growth and healthy operational margins. However, declining net profit margins, high leverage, and reduced free cash flow indicate financial pressures. The company has a solid foundation with a stable equity position but needs to focus on cost control and debt management.

Income Statement

Apollo Tyres Limited has shown a robust revenue growth rate with an increase from the previous year, indicating strong sales momentum. The gross profit margin is solid, reflecting efficient production and cost management. However, the net profit margin has decreased, suggesting increased operational costs or other expenses are impacting net income. The EBIT and EBITDA margins remain healthy, showing core operational profitability but with some decline in EBIT, indicating potential cost pressures.

Balance Sheet

The company's balance sheet demonstrates a stable equity ratio, indicating a strong buffer against liabilities. However, the debt-to-equity ratio is relatively high, which could pose financial risk if not managed properly. The return on equity is positive, showing the company's ability to generate profits from shareholders’ equity but has seen some decline, suggesting less efficiency in utilizing equity capital.

Cash Flow

Operating cash flow remains positive, allowing the company to cover its net income, though the ratio has decreased, indicating less efficient cash generation. Free cash flow has declined significantly compared to the previous year, highlighting a drop in liquidity and potential constraints on capital investments. The company needs to monitor its free cash flow to ensure sustainable growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	263.49B	261.23B	250.20B	241.22B	205.81B	169.55B
Gross Profit	114.38B	109.51B	112.24B	93.40B	80.59B	74.44B
EBITDA	31.08B	34.92B	45.43B	33.71B	26.74B	23.14B
Net Income	8.32B	11.21B	17.22B	10.46B	6.39B	3.50B
Balance Sheet
Total Assets	0.00	273.06B	269.57B	273.53B	271.46B	260.35B
Cash, Cash Equivalents and Short-Term Investments	8.89B	11.07B	14.05B	12.39B	15.40B	22.34B
Total Debt	0.00	44.10B	49.05B	64.21B	70.61B	73.34B
Total Liabilities	-147.66B	125.40B	130.55B	147.75B	153.94B	145.92B
Stockholders Equity	147.66B	147.66B	139.02B	125.78B	117.52B	114.43B
Cash Flow
Free Cash Flow	0.00	10.55B	27.09B	13.60B	3.07B	12.57B
Operating Cash Flow	0.00	18.23B	34.40B	21.37B	21.54B	24.47B
Investing Cash Flow	0.00	-2.02B	-7.11B	-4.78B	-11.72B	-23.44B
Financing Cash Flow	0.00	-16.47B	-26.59B	-16.92B	-10.81B	1.52B

Apollo Tyres Limited. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 505.55
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:APOLLOTYRE, the sentiment is Negative. The current price of 505.55 is below the 20-day moving average (MA) of 505.92, below the 50-day MA of 514.07, and above the 200-day MA of 475.24, indicating a neutral trend. The MACD of -0.64 indicates Negative momentum. The RSI at 47.08 is Neutral, neither overbought nor oversold. The STOCH value of 59.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:APOLLOTYRE.

Apollo Tyres Limited. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHRIPISTON	73 Outperform	₹140.31B	25.98	―	0.31%	14.43%	15.60%
CEATLTD	69 Neutral	₹150.82B	30.47	―	0.77%	12.61%	-12.56%
JKTYRE	69 Neutral	₹138.56B	25.88	―	0.59%	4.55%	-30.30%
VARROC	69 Neutral	₹88.66B	63.71	―	0.16%	7.38%	-73.62%
APOLLOTYRE	64 Neutral	₹320.31B	40.40	―	0.98%	4.36%	-45.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Apollo Tyres Limited. Corporate Events

Apollo Tyres Sees Favorable Court Ruling in Rs. 2,791 Million Litigation

Apollo Tyres Limited announced that the Hon’ble Madras High Court has quashed the proceedings under Section 74 of the CGST Act against the company, concerning a pending litigation involving a sum of Rs. 2,791 million. This development effectively nullifies the demand, potentially relieving the company of a significant financial liability and positively impacting its financial standing.

Apollo Tyres Strengthens Board with New Independent Directors

Apollo Tyres Limited has announced the appointment of two new Independent Directors, Mr. Rajendra Chitale and Mr. Tapan Mitra, effective from February 9, 2026, for a three-year term. This strategic move, approved by the Board of Directors and pending shareholder consent, aims to strengthen the company’s governance and leverage the extensive expertise of the appointees, potentially enhancing its market positioning and stakeholder confidence.