Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 14 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500877 | NSE: APOLLOTYRE

Fundamental Analysis of Apollo Tyres Ltd

Basic Stock Data

Last Updated: April 8, 2024, 4:54 am

Market Cap 29,824 Cr.
Current Price 470
High / Low560/318
Stock P/E16.5
Book Value 204
Dividend Yield0.84 %
ROCE10.2 %
ROE8.77 %
Face Value 1.00

Data Source: screener.in

Competitors of Apollo Tyres Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Innovative Tyres & Tubes Ltd 12.9 Cr. 7.1510.2/2.00 0.040.00 %306 %% 10.0
Balkrishna Industries Ltd 45,352 Cr. 2,3462,796/1,95236.5 4250.69 %13.8 %13.8 % 2.00
Birla Tyres Ltd 75.6 Cr. 5.306.01/4.10 88.20.00 %%% 10.0
TVS Srichakra Ltd 3,431 Cr. 4,4795,097/2,73532.0 1,4030.72 %9.23 %8.16 % 10.0
JK Tyre & Industries Ltd 10,808 Cr. 415554/16215.0 1440.48 %11.1 %9.49 % 2.00
Industry Average11,935.90 Cr1,450.4916.70412.050.38%68.03%6.29%6.80

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: April 6, 2024, 9:25 am

Quarterly Chart

Apollo Tyres Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales12,15312,79913,41212,81511,84913,18014,84317,54916,35017,39720,94824,56825,194
Expenses10,97611,32811,52410,8769,84011,31313,17515,57314,39214,57918,35321,23521,071
Operating Profit1,1771,4711,8881,9392,0081,8671,6681,9761,9582,8182,5953,3334,123
OPM %10%11%14%15%17%14%11%11%12%16%12%14%16%
Other Income210748-31110148114-7724-4781186482
Interest297323293189101118177199300463465551549
Depreciation3263974113884274625938131,1381,3151,4001,4191,449
Profit before tax5568591,2321,3311,5911,4361,0128885435618481,4272,207
Tax %26%29%18%27%29%23%28%23%12%38%25%23%
Net Profit4106121,0059781,1231,0997246804763506391,1051,591
EPS in Rs8.1312.1519.9419.2122.0621.5912.6511.888.335.5110.0617.3925.05
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%

Growth

Compounded Sales Growth
10 Years:7%
5 Years:11%
3 Years:15%
TTM:6%
Compounded Profit Growth
10 Years:6%
5 Years:8%
3 Years:32%
TTM:133%
Stock Price CAGR
10 Years:11%
5 Years:17%
3 Years:28%
1 Year:43%
Return on Equity
10 Years:10%
5 Years:7%
3 Years:7%
Last Year:9%

Apollo Tyres Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital50505051515157575764646464
Reserves2,7823,3404,5134,9916,5547,2399,7199,9839,87311,38011,68912,81412,919
Borrowings2,8722,6511,6131,1061,5473,4374,6615,1116,7647,3347,0616,4215,533
Other Liabilities2,6842,5142,8572,4513,4424,5075,6205,0006,5127,0408,2287,9897,877
Total Liabilities8,3888,5549,0348,60011,59415,23320,05820,15123,20525,81627,04127,28726,392
Fixed Assets4,1584,3134,5934,3825,2146,69210,40311,75415,44816,42017,59117,65317,015
CWIP331320462189942,9152,3041,5391,6421,107618253322
Investments1655641015063961,342619110481436190
Other Assets3,8843,8674,3303,8994,8805,2306,0086,8526,0968,1818,3508,9468,866
Total Assets8,3888,5549,0348,60011,59415,23320,05820,15123,20525,81627,04127,28726,392

Reserves and Borrowings Chart

Apollo Tyres Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 7521,2751,6451,4122,1229021,7201,0712,5172,4472,1542,134
Cash from Investing Activity -807-599-119-796-2,226-3,368-3,891-1,027-2,817-2,342-1,172-476
Cash from Financing Activity 30-505-1,208-684-2551,8952,321-62472152-1,081-1,692
Net Cash Flow-25171319-68-358-571150-18173257-100-34

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-1.00-1.000.000.001.00-2.00-3.00-4.00-5.00-5.00-5.00-3.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days342928273331352721293637
Inventory Days91939792119140128125129129122110
Days Payable594659469592106749310910484
Cash Conversion Cycle667667735880577857495464
Working Capital Days313219272525183110111224
ROCE %17%20%26%26%23%16%9%9%5%9%7%10%

Financial Efficiency Indicators Chart

Apollo Tyres Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters37.31%37.60%37.34%37.34%37.34%37.34%37.34%37.34%37.34%37.34%37.34%37.34%
FIIs24.27%22.87%20.48%19.66%19.43%20.71%21.75%22.88%22.35%23.41%22.10%17.96%
DIIs11.54%15.66%18.04%18.39%18.55%17.47%17.88%17.13%17.78%17.22%17.74%22.02%
Government1.57%1.57%1.57%1.57%1.57%1.57%1.57%1.57%1.57%1.57%1.57%1.57%
Public25.30%22.30%22.57%23.04%23.10%22.91%21.46%21.08%20.94%20.46%21.26%21.10%
No. of Shareholders2,37,5032,67,2182,90,0773,13,8373,28,1793,22,7772,81,7282,85,1922,82,6492,86,7773,33,8273,36,846

Shareholding Pattern Chart

No. of Shareholders

Apollo Tyres Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Equity Opportunities Fund - Regular Plan82000001.95302.29
Kotak Flexicap Fund - Regular Plan56000000.51206.44
Kotak Bluechip Fund - Regular Plan18500001.0568.2
Kotak Balanced Advantage Fund14642820.3653.98
UTI Transportation and Logistic Fund13459412.2352.28
UTI Nifty200 Momentum 30 Index Fund10982541.7642.66
UTI Hybrid Equity Fund8028500.6531.18
Kotak Manufacture in India Fund4700001.2717.33
Kotak Infrastructure & Economic Reform Fund - Regular Plan4100001.3315.11
Kotak Equity Arbitrage Fund - Regular Plan3859000.0514.23

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)17.3910.065.688.3311.88
Diluted EPS (Rs.)17.3910.065.688.3311.88
Cash EPS (Rs.)39.7332.0926.2228.2226.09
Book Value[Excl.RevalReserv]/Share (Rs.)202.77185.04180.18173.59175.51
Book Value[Incl.RevalReserv]/Share (Rs.)202.77185.04180.18173.59175.51
Revenue From Operations / Share (Rs.)386.84329.83273.93285.41306.77
PBDIT / Share (Rs.)52.8242.4746.0834.3036.39
PBIT / Share (Rs.)30.4820.4425.3814.4122.18
PBT / Share (Rs.)22.4713.358.849.5015.52
Net Profit / Share (Rs.)17.3910.055.518.3311.88
NP After MI And SOA / Share (Rs.)17.3910.065.518.3311.88
PBDIT Margin (%)13.6512.8716.8212.0111.86
PBIT Margin (%)7.876.199.265.047.23
PBT Margin (%)5.804.043.223.325.06
Net Profit Margin (%)4.493.042.012.913.87
NP After MI And SOA Margin (%)4.493.042.012.913.87
Return on Networth / Equity (%)8.575.433.064.796.77
Return on Capital Employeed (%)10.006.748.334.708.01
Return On Assets (%)4.032.391.342.043.36
Long Term Debt / Equity (X)0.290.370.420.510.41
Total Debt / Equity (X)0.430.520.440.660.47
Asset Turnover Ratio (%)0.730.630.550.600.73
Current Ratio (X)1.111.051.140.951.35
Quick Ratio (X)0.550.490.640.390.54
Inventory Turnover Ratio (X)3.333.282.362.293.04
Dividend Payout Ratio (NP) (%)18.6834.800.0075.0425.24
Dividend Payout Ratio (CP) (%)8.1710.900.0022.1411.49
Earning Retention Ratio (%)81.3265.200.0024.9674.76
Cash Earning Retention Ratio (%)91.8389.100.0077.8688.51
Interest Coverage Ratio (X)6.316.076.616.9911.50
Interest Coverage Ratio (Post Tax) (X)3.042.453.162.705.86
Enterprise Value (Cr.)25055.0917173.8417176.1010369.5016843.56
EV / Net Operating Revenue (X)1.020.810.980.630.95
EV / EBITDA (X)7.476.375.875.288.09
MarketCap / Net Operating Revenue (X)0.820.570.810.270.72
Retention Ratios (%)81.3165.190.0024.9574.75
Price / BV (X)1.581.031.240.451.26
Price / Net Operating Revenue (X)0.820.570.810.270.72
EarningsYield0.050.050.020.100.05

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 297.68

The stock is overvalued by 36.66% compared to the current price ₹470

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 22.08, which is a positive sign.
  2. The company has higher reserves (8,292.00 cr) compared to borrowings (4,316.23 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 14.75%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 64.92, 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: 4.49%
      • 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: 10.00% (Industry Average ROCE: 67.29%)
      • 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%: 8.57% (Industry Average ROE: 5.37%)
      • 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): 3.04
      • 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: 0.55
      • 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: 16.5 (Industry average Stock P/E: 18.96)
      • 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: 0.43
      • 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

Apollo Tyres Ltd. is a Public Limited Listed company incorporated on 28/09/1972 and has its registered office in the State of Kerala, India. Company’s Corporate Identification Number(CIN) is L25111KL1972PLC002449 and registration number is 002449. Currently Company is involved in the business activities of Manufacture of rubber tyres and tubes for motor vehicles, motorcycles, scooters, three-wheelers, tractors and aircraft. Company’s Total Operating Revenue is Rs. 14649.40 Cr. and Equity Capital is Rs. 63.51 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Tyres & Tubes3rd Floor, Areekal Mansion, Kochi Kerala 682036investors@apollotyres.com
http://www.apollotyres.com
Management
NamePosition Held
Mr. Onkar KanwarChairman
Mr. Neeraj KanwarVice Chairman & Mng.Director
Mr. Satish SharmaWhole Time Director
Mr. Robert SteinmetzDirector
Mr. Francesco CrispinoDirector
Mrs. Pallavi ShroffDirector
Mr. Sunam SarkarDirector
Mr. Akshay ChudasamaDirector
Mr. Vinod RaiDirector
Mr. Vikram S MehtaDirector
General Bikram SinghDirector
Mr. Francesco GoriDirector
Ms. Lakshmi PuriDirector
Mr. Vishal MahadeviaDirector
Dr. Jaimini BhagwatiDirector

Apollo Tyres Ltd. Share Price Update

Share PriceValue
Today₹484.50
Previous Day₹488.60

FAQ

What is the latest fair value of Apollo Tyres Ltd?

The latest fair value of Apollo Tyres Ltd is 297.68.

What is the Market Cap of Apollo Tyres Ltd?

The Market Cap of Apollo Tyres Ltd is 29,824 Cr..

What is the current Stock Price of Apollo Tyres Ltd as on 13 April 2024?

The current stock price of Apollo Tyres Ltd as on 13 April 2024 is 470.

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 ₹560/318.

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

The Stock P/E of Apollo Tyres Ltd is 16.5.

What is the Book Value of Apollo Tyres Ltd?

The Book Value of Apollo Tyres Ltd is 204.

What is the Dividend Yield of Apollo Tyres Ltd?

The Dividend Yield of Apollo Tyres Ltd is 0.84 %.

What is the ROCE of Apollo Tyres Ltd?

The ROCE of Apollo Tyres Ltd is 10.2 %.

What is the ROE of Apollo Tyres Ltd?

The ROE of Apollo Tyres Ltd is 8.77 %.

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