Apollo Tyres Limited

Consumer Cyclical — Auto Parts · NSE

₹408.40−₹5.50 (−1.33%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Apollo Tyres Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Apollo Tyres Limited manufactures and sells automotive tires, tubes, and flaps in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees17,118

Annual revenue₹28,214 Cr

How does it make money?

Turns over ₹28,214 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 17,118 employees supports ₹1.65 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin15.2%

Net margin4.9%

Revenue / employee₹1.65 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Little sign of one

Returns on capital of 8.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE8.0%

ROE8.2%

Peer median ROE23.0%

What is the outlook?

22 analysts covering the stock expect revenue to grow about 7.8% and earnings to grow about 31.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+7.8%

Est. earnings growth+31.8%

Analysts22

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +17% while net margin moved +12% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+17%

Margin effect+12%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.2% is weak

Quality vs. Valuation

Company Quality

55/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

74/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

15.1x

3Y Median

23.3x

40 monthly readings · mean 23.4x · range 13.8x–33.7x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 35% below its 3y median of 23.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 67% below the peer median of 45.7x.

vs. its own history

Cheap

23.3x median over 40 months · -35%

vs. sector peers

Cheap

45.7x median of 4 peers · -67%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

15.1x

P/B

1.55x

EV/EBITDA

6.6x

PEG

1.60

Dividend Yield

1.47%

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 43% over 3 years.
Cash generation is improving
Free cash flow is up 66% over 3 years.
Valuation below its historical average
At 15.1x the stock trades 35% below its own median of 23.3x.
Very low debt
Debt/Equity of 0.22x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 10.0% to 8.0% — often a sign of competition or overexpansion.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 43% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 35% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 67% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2,264 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 5.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 13%✓ 15.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.4% CAGR
Latest reported year was 12.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹2,264 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹25,835 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

15.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.55x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹26.99

Profitable

Profitable on a per-share basis

ROE

8.2%

Moderate

Moderate capital efficiency

ROCE

8.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.22x

Low

Conservative leverage

Revenue Growth (YoY)

12.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

2660.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.47%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹2,264 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹408.4

P/E (Forward)

12.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

6.5%

Average

Average margins

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

1.32

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.17

Defensive

Steadier than the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

403.4 / 421.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹24,122 Cr	₹25,020 Cr	₹25,781 Cr	₹28,214 Cr	+5.4%
EBITDA	₹3,336 Cr	₹4,579 Cr	₹3,634 Cr	₹4,297 Cr	+8.8%
EBITDA Margin	13.8%	18.3%	14.1%	15.2%	—
PAT (Net Profit)	₹1,046 Cr	₹1,722 Cr	₹1,121 Cr	₹1,372 Cr	+9.5%
EPS	₹16.47	₹27.11	₹17.66	₹21.65	+9.5%
ROE	8.3%	12.4%	7.6%	8.2%	—
ROCE	10.0%	15.2%	9.9%	8.0%	—
Total Debt	₹6,421 Cr	₹4,905 Cr	₹4,410 Cr	₹3,675 Cr	-17.0%
Free Cash Flow	₹1,360 Cr	₹2,709 Cr	₹1,055 Cr	₹2,264 Cr	+18.5%

🟢 Revenue has grown at 5.4% a year over 3 years.

🟢 EBITDA has grown at 8.8% a year over 3 years.

🟢 EBITDA Margin has risen from 13.8% to 15.2% over 3 years (+1.4 pts).

🟢 PAT (Net Profit) has grown at 9.5% a year over 3 years.

🟢 EPS has grown at 9.5% a year over 3 years.

🟡 ROE has held roughly flat at 8.2% over 3 years.

🔴 ROCE has fallen from 10.0% to 8.0% over 3 years (-2.0 pts).

🟢 Total Debt has shrunk at 17.0% a year over 3 years.

🟢 Free Cash Flow has grown at 18.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹29,240 Cr

Total Liabilities

₹12,525 Cr

Total Debt

₹3,675 Cr

Cash & Equivalents

₹1,029 Cr

Operating Cash Flow

₹3,667 Cr

Capex

-₹1,403 Cr

Shareholding (proxy)

Institutional Holding

34.4%

Insider Holding

49.7%

Corporate Actions

Next Earnings

12 Nov 2026

Dividend Rate

₹6

Ex-Dividend Date

10 Jul 2026

Analyst Consensus

Recommendations

17 Buy · 5 Hold · 2 Sell

Target Price (Mean)

₹495.13

+21.2% vs CMP

Target Range

₹366 – ₹590

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 positive2 mixed2 general

Apollo Tyres (NSEI:APOLLOTYRE) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

APOLLOTYRE Outlook for the Week

Equitypandit, 09 Oct

Apollo Tyres Share Price Jumps 4% After UBS Upgrades To 'Buy', Hikes Target Price: Do You Own?

NDTV Profit, 24 AugAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Apollo Tyres declares ₹2.50 final dividend for FY26

scanx.trade, 03 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Apollo Tyres (NSEI:APOLLOTYRE) Stock Sees Modest Fair Value Lift Ahead Of Results

Yahoo Finance, 14 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Top Tyre Stocks 2026: MRF, Apollo Tyres, CEAT

Univest, 16 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate9/20

🟢Financial HealthStrong15.4/20

🟡GrowthModest10.4/20

🔴ProfitabilityWeak6.2/15

🟢ValuationAttractive10.7/15

🟢RiskLow7.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

This thesis breaks if

✓EBITDA margin holds above 13%15.2%
✓Revenue growth stays above 4% a year5.4% CAGR
✓Free cash flow remains positive₹2,264 Cr
✓Debt / EBITDA stays below 2x0.9x
✓ROCE stays above 8%8.0%