Apollo Tyres Limited. (APOLLOTYRE) AI Stock Analysis

• Market Cap: ₹267.12B
• Dividend Yield: 0.98%
• Average Volume (3M): 63.76K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.33
• Revenue Growth: 4.36%
• EPS Growth: -45.33%
• Country: IN
• Employees: 7,559
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 7.80
• 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: ₹567.50
• Price Target Upside: 34.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 27.22
• Revenue Forecast (FY): ₹284.71B

• Rating: 64 Neutral
• Price Target: ₹450.00 ▲(6.99% Upside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

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

Diversified business model & geography

Apollo's mix of OEM and replacement sales across India and Europe, plus the Vredestein brand, creates durable revenue diversification. Geographic and channel breadth reduces reliance on any single market cycle, supports pricing segmentation (mass vs premium) and aids long-term resilience of sales and margins.

Sustained revenue growth and healthy operational margins

Consistent revenue growth with solid gross and EBITDA margins indicates efficient production and scale advantages. Healthy operational margins provide capacity to invest in product development, capacity upkeep and distribution, supporting long-term competitiveness despite cyclical end markets.

Balance sheet buffer and positive operating cash flow

A stable equity ratio and positive operating cash flow give Apollo flexibility to fund operations and service obligations. This structural cash generation supports ongoing capex and working capital needs, helping sustain manufacturing operations and strategic investments over the medium term.

Negative Factors

Relatively high leverage

Elevated debt relative to equity increases sensitivity to interest rates and refinancing risk. Over a 2–6 month horizon, high leverage can constrain strategic investments, limit flexibility during downturns, and amplify earnings volatility if margins slip or cyclical demand weakens.

Declining net profit margins

A falling net margin signals persistent cost pressures (raw materials, logistics or SG&A) or weaker pricing power. If structural, this reduces retained earnings and reinvestment capacity, making it harder to improve returns or absorb shocks without sustained cost control or product mix improvement.

Reduced free cash flow generation

Material declines in free cash flow limit the company's ability to fund capex, repay debt, or return capital to shareholders without raising external funding. Persistently weaker FCF can increase leverage and weaken strategic optionality over the medium term.

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 makes money primarily by manufacturing and selling tyres under its brands across domestic and international markets. Key revenue streams include: (1) Replacement/aftermarket tyre sales: selling tyres to consumers and fleet operators through dealers, distributors, and retail networks; this is typically driven by vehicle parc size, usage cycles, and pricing/mix (including premium vs mass-market tyres). (2) OEM sales: supplying tyres directly to vehicle manufacturers for fitment on new vehicles; revenue depends on OEM production volumes, negotiated supply contracts, and platform/fitment wins. (3) Product and brand mix across geographies: sales generated in India under the Apollo brand and in Europe and other international markets under the Vredestein brand; earnings are influenced by regional demand, currency movements, and the mix of passenger vs commercial tyres. (4) Ancillary items directly tied to tyre sales (if applicable in disclosed reporting): revenue may include tubes, flaps, and related services bundled with distribution or warranty support; if not separately disclosed, this is included within tyre sales. Profitability and cash generation are materially affected by input costs (notably natural/synthetic rubber, crude-linked materials, carbon black, and steel), manufacturing utilization, logistics costs, and pricing power. Specific significant partnerships are not publicly confirmable here; null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	267.43B	261.23B	250.20B	241.22B	205.81B	169.55B
Gross Profit	116.53B	109.51B	112.24B	93.40B	80.59B	74.44B
EBITDA	30.84B	34.92B	45.43B	33.71B	26.74B	23.14B
Net Income	7.93B	11.21B	17.22B	10.46B	6.39B	3.50B
Balance Sheet
Total Assets	290.09B	273.06B	269.57B	273.53B	271.46B	260.35B
Cash, Cash Equivalents and Short-Term Investments	11.44B	11.07B	14.05B	12.39B	15.40B	22.34B
Total Debt	45.18B	44.10B	49.05B	64.21B	70.61B	73.34B
Total Liabilities	134.76B	125.40B	130.55B	147.75B	153.94B	145.92B
Stockholders Equity	155.33B	147.66B	139.02B	125.78B	117.52B	114.43B
Cash Flow
Free Cash Flow	7.45B	10.55B	27.09B	13.60B	3.07B	12.57B
Operating Cash Flow	13.15B	18.23B	34.40B	21.37B	21.54B	24.47B
Investing Cash Flow	-5.65B	-2.02B	-7.11B	-4.78B	-11.72B	-23.44B
Financing Cash Flow	-7.62B	-16.47B	-26.59B	-16.92B	-10.81B	1.52B

Apollo Tyres Limited. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 420.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 420.6 is below the 20-day moving average (MA) of 435.67, below the 50-day MA of 473.41, and below the 200-day MA of 476.60, indicating a bearish trend. The MACD of -16.85 indicates Negative momentum. The RSI at 37.25 is Neutral, neither overbought nor oversold. The STOCH value of 55.45 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	₹137.66B	28.99	―	0.31%	14.43%	15.60%
VARROC	69 Neutral	₹76.08B	-220.37	―	0.16%	7.38%	-73.62%
APOLLOTYRE	64 Neutral	₹267.12B	16.87	―	0.98%	4.36%	-45.33%
CEATLTD	64 Neutral	₹143.07B	24.70	―	0.77%	12.61%	-12.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
JKTYRE	56 Neutral	₹120.29B	17.24	―	0.59%	4.55%	-30.30%

Apollo Tyres Limited. Corporate Events

Apollo Tyres Gets Marginal ESG Rating Upgrade for FY25

Apollo Tyres Limited has announced a revision in its environmental, social and governance rating by SES ESG Research Private Limited for the financial year 2025. The rating has been marginally upgraded from 74.9 to 75.1, reflecting a slight improvement in the company’s assessed ESG performance and providing investors with updated information on its sustainability profile.

The company disclosed the revised rating to stock exchanges in compliance with securities regulations and has also made the information available on its website. The incremental upgrade, though modest, may support Apollo Tyres’ positioning among stakeholders who increasingly weigh ESG metrics in their investment and governance decisions.