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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500877 | NSE: APOLLOTYRE

Apollo Tyres Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:36 pm

Market Cap 31,438 Cr.
Current Price 495
High / Low585/414
Stock P/E20.7
Book Value 225
Dividend Yield1.21 %
ROCE16.4 %
ROE13.2 %
Face Value 1.00
PEG Ratio0.75

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Apollo Tyres Ltd

Competitors of Apollo Tyres Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Goodyear India Ltd 2,333 Cr. 1,0111,440/1,00039.9 2551.48 %22.0 %16.0 % 10.0
TVS Srichakra Ltd 2,740 Cr. 3,5835,097/3,47039.6 1,4041.32 %11.1 %10.6 % 10.0
JK Tyre & Industries Ltd 9,891 Cr. 361554/33512.9 1721.25 %19.3 %20.6 % 2.00
Innovative Tyres & Tubes Ltd 10.2 Cr. 5.6510.2/4.75 9.210.00 %26.6 %% 10.0
CEAT Ltd 11,502 Cr. 2,8453,263/2,08019.4 1,0381.05 %20.4 %18.1 % 10.0
Industry Average18,566.83 Cr1,581.0927.55512.740.98%19.06%16.02%6.43

All Competitor Stocks of Apollo Tyres Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales5,1955,0264,5845,0775,7075,5785,9425,9566,4236,2476,2456,2806,595
Expenses4,1644,2114,0184,4394,9654,9525,2525,2445,5095,2495,1935,1205,387
Operating Profit1,0308155676387436266907129139981,0511,1601,208
OPM %20%16%12%13%13%11%12%12%14%16%17%18%18%
Other Income17614025163711774022133
Interest105104105104108128118132142139135133123
Depreciation327348340340344375344349354372362360368
Profit before tax615423161219307160238238424527576680721
Tax %28%32%21%21%27%29%20%25%31%19%31%30%31%
Net Profit444287128174224113191179292427397474497
EPS in Rs6.994.522.012.743.521.793.002.824.606.736.257.477.82

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales12,15312,79913,41212,81511,84913,18014,84317,54916,35017,39720,94824,56825,367
Expenses10,97611,32811,52410,8769,84011,31313,17515,57314,39214,57918,35321,23520,949
Operating Profit1,1771,4711,8881,9392,0081,8671,6681,9761,9582,8182,5953,3334,418
OPM %10%11%14%15%17%14%11%11%12%16%12%14%17%
Other Income210748-31110148114-7724-4781186479
Interest297323293189101118177199300463465551530
Depreciation3263974113884274625938131,1381,3151,4001,4191,462
Profit before tax5568591,2321,3311,5911,4361,0128885435618481,4272,504
Tax %26%29%18%27%29%23%28%23%12%38%25%23%
Net Profit4106121,0059781,1231,0997246804763506391,1051,795
EPS in Rs8.1312.1519.9419.2122.0621.5912.6511.888.335.5110.0617.3928.27
Dividend Payout %6%4%4%10%9%14%24%27%36%63%32%26%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)49.27%64.22%-2.69%14.83%-2.14%-34.12%-6.08%-30.00%-26.47%82.57%72.93%
Change in YoY Net Profit Growth (%)0.00%14.95%-66.90%17.51%-16.96%-31.98%28.04%-23.92%3.53%109.04%-9.64%

Apollo Tyres Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:8%
3 Years:13%
TTM:2%
Compounded Profit Growth
10 Years:5%
5 Years:16%
3 Years:35%
TTM:-4%
Stock Price CAGR
10 Years:8%
5 Years:24%
3 Years:30%
1 Year:19%
Return on Equity
10 Years:10%
5 Years:8%
3 Years:9%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:42 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital50505151515757576464646464
Reserves3,3404,5134,9916,5547,2399,7199,9839,87311,38011,68912,51513,83914,245
Borrowings2,6511,6131,1061,5473,4374,6615,1116,7647,3347,0616,4214,9054,801
Other Liabilities2,5142,8572,4513,4424,5075,6205,0006,5127,0408,2288,2828,0688,396
Total Liabilities8,5549,0348,60011,59415,23320,05820,15123,20525,81627,04127,28126,87527,505
Fixed Assets4,3134,5934,3825,2146,69210,40311,75415,44816,42017,59117,65317,00616,774
CWIP320462189942,9152,3041,5391,6421,107618253348421
Investments55641015063961,34261911048143653243
Other Assets3,8674,3303,8994,8805,2306,0086,8526,0968,1818,3508,9408,98910,267
Total Assets8,5549,0348,60011,59415,23320,05820,15123,20525,81627,04127,28126,87527,505

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1,2751,6451,4122,1229021,7201,0712,5172,4472,1542,1373,440
Cash from Investing Activity +-599-119-796-2,226-3,368-3,891-1,027-2,817-2,342-1,172-478-711
Cash from Financing Activity +-505-1,208-684-2551,8952,321-62472152-1,081-1,692-2,659
Net Cash Flow171319-68-358-571150-18173257-100-3470

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow1.00-1.000.000.001.00-2.00-3.00-4.00-5.00-5.00-5.00-3.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days292827333135272129363738
Inventory Days939792119140128125129129122110113
Days Payable465946959210674931091048580
Cash Conversion Cycle766773588057785749546372
Working Capital Days321927252518311011122430
ROCE %20%26%26%23%16%9%9%5%9%7%10%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters37.34%37.34%37.34%37.34%37.34%37.34%37.34%37.34%37.34%37.34%37.36%37.36%
FIIs20.48%19.66%19.43%20.71%21.75%22.88%22.35%23.41%22.10%17.96%18.16%14.46%
DIIs18.04%18.39%18.55%17.47%17.88%17.13%17.78%17.22%17.74%22.02%21.99%25.12%
Government1.57%1.57%1.57%1.57%1.57%1.57%1.57%1.57%1.57%1.57%1.57%1.57%
Public22.57%23.04%23.10%22.91%21.46%21.08%20.94%20.46%21.26%21.10%20.93%21.48%
No. of Shareholders2,90,0773,13,8373,28,1793,22,7772,81,7282,85,1922,82,6492,86,7773,33,8273,36,8463,72,3724,24,206

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan41,892,1873.612172.112,903,9582024-11-211342.59%
HDFC Balanced Advantage Fund - Regular Plan9,000,0000.59466.652,903,9582024-11-21209.92%
Kotak Equity Opportunities Fund - Regular Plan8,200,0002.23425.172,903,9582024-11-21182.37%
Nippon India Small Cap Fund6,354,3800.72329.472,903,9582024-11-21118.82%
Kotak Flexicap Fund - Regular Plan5,600,0000.64290.362,903,9582024-11-2192.84%
Nippon India Growth Fund4,399,1850.93228.12,903,9582024-11-2151.49%
Franklin India Prima Fund3,044,1741.55157.842,903,9582024-11-214.83%
Invesco India Mid Cap Fund2,903,9583.55150.572,903,9582024-11-210%
HDFC Large and Mid Cap Fund - Regular Plan2,839,0000.88147.22,903,9582024-11-21-2.24%
HDFC Childrens Gift Fund - Regular Plan2,387,3001.46123.782,903,9582024-11-21-17.79%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)27.1117.3910.065.688.33
Diluted EPS (Rs.)27.1117.3910.065.688.33
Cash EPS (Rs.)50.3839.7332.0926.2228.22
Book Value[Excl.RevalReserv]/Share (Rs.)218.90202.77185.04180.18173.59
Book Value[Incl.RevalReserv]/Share (Rs.)218.90202.77185.04180.18173.59
Revenue From Operations / Share (Rs.)399.59386.84329.83273.93285.41
PBDIT / Share (Rs.)72.4452.8242.4746.0834.30
PBIT / Share (Rs.)49.1730.4820.4425.3814.41
PBT / Share (Rs.)39.9922.4713.358.849.50
Net Profit / Share (Rs.)27.1117.3910.055.518.33
NP After MI And SOA / Share (Rs.)27.1117.3910.065.518.33
PBDIT Margin (%)18.1213.6512.8716.8212.01
PBIT Margin (%)12.307.876.199.265.04
PBT Margin (%)10.005.804.043.223.32
Net Profit Margin (%)6.784.493.042.012.91
NP After MI And SOA Margin (%)6.784.493.042.012.91
Return on Networth / Equity (%)12.388.575.433.064.79
Return on Capital Employeed (%)15.6810.006.748.334.70
Return On Assets (%)6.384.032.391.342.04
Long Term Debt / Equity (X)0.190.290.370.420.51
Total Debt / Equity (X)0.280.430.520.440.66
Asset Turnover Ratio (%)0.930.730.630.550.60
Current Ratio (X)1.281.111.051.140.95
Quick Ratio (X)0.670.550.490.640.39
Inventory Turnover Ratio (X)2.553.333.282.362.29
Dividend Payout Ratio (NP) (%)16.5918.6834.800.0075.04
Dividend Payout Ratio (CP) (%)8.938.1710.900.0022.14
Earning Retention Ratio (%)83.4181.3265.200.0024.96
Cash Earning Retention Ratio (%)91.0791.8389.100.0077.86
Interest Coverage Ratio (X)9.096.316.076.616.99
Interest Coverage Ratio (Post Tax) (X)4.563.042.453.162.70
Enterprise Value (Cr.)32628.1025055.0917173.8417176.1010369.50
EV / Net Operating Revenue (X)1.291.020.810.980.63
EV / EBITDA (X)7.097.476.375.875.28
MarketCap / Net Operating Revenue (X)1.170.820.570.810.27
Retention Ratios (%)83.4081.3165.190.0024.95
Price / BV (X)2.131.581.031.240.45
Price / Net Operating Revenue (X)1.170.820.570.810.27
EarningsYield0.050.050.050.020.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Apollo Tyres Ltd as of November 23, 2024 is: 622.23

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Apollo Tyres Ltd is Undervalued by 25.70% compared to the current share price 495.00

Intrinsic Value of Apollo Tyres Ltd as of November 23, 2024 is: 794.49

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Apollo Tyres Ltd is Undervalued by 60.50% compared to the current share price 495.00

Last 5 Year EPS CAGR: 27.68%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 22.00, which is a positive sign.
  2. The company has higher reserves (9,221.54 cr) compared to borrowings (4,416.31 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (15.85 cr) and profit (327.92 cr) over the years.
  1. The stock has a low average ROCE of 14.67%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 65.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Apollo Tyres Ltd:
    1. Net Profit Margin: 6.78%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.68% (Industry Average ROCE: 19.06%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.38% (Industry Average ROE: 13.73%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.56
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.67
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 20.7 (Industry average Stock P/E: 23.61)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.28
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

No data availabale for About the Company
INDUSTRYADDRESSCONTACT
Industry not foundAddress not foundContact not found
Management Data not Available

FAQ

What is the latest intrinsic value of Apollo Tyres Ltd?

The latest intrinsic value of Apollo Tyres Ltd as on 23 November 2024 is ₹622.23, which is 25.70% higher than the current market price of ₹495.00.

What is the Market Cap of Apollo Tyres Ltd?

The Market Cap of Apollo Tyres Ltd is 31,438 Cr..

What is the current Stock Price of Apollo Tyres Ltd as on 23 November 2024?

The current stock price of Apollo Tyres Ltd as on 23 November 2024 is 495.

What is the High / Low of Apollo Tyres Ltd stocks in FY 2024?

In FY 2024, the High / Low of Apollo Tyres Ltd stocks is 585/414.

What is the Stock P/E of Apollo Tyres Ltd?

The Stock P/E of Apollo Tyres Ltd is 20.7.

What is the Book Value of Apollo Tyres Ltd?

The Book Value of Apollo Tyres Ltd is 225.

What is the Dividend Yield of Apollo Tyres Ltd?

The Dividend Yield of Apollo Tyres Ltd is 1.21 %.

What is the ROCE of Apollo Tyres Ltd?

The ROCE of Apollo Tyres Ltd is 16.4 %.

What is the ROE of Apollo Tyres Ltd?

The ROE of Apollo Tyres Ltd is 13.2 %.

What is the Face Value of Apollo Tyres Ltd?

The Face Value of Apollo Tyres Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Apollo Tyres Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE