Apollo Tyres Limited is a multinational tyre manufacturer based in Gurgaon, India. It is one of the largest tyre manufacturers in the world.Market Capitalisation
The market capitalisation of Apollo Tyres, as of July 17, 2018, is a little over Rs.15,725 crore.
Company’s Wealth and Recent Performance
- For the year ended on March 31, 2018, Apollo Tyres reported its revenue from operations to be at Rs.14,928 crore, as against Rs.14,052 stated for the FY 2016-17. The increase in revenue was also marked by a significant increase in expenditure for the year - almost Rs.14,200 crore in comparison to Rs.12,859 crore for the previous fiscal year.
- The company has registered a healthy increase in revenue in all the regions. Its sales in the Asia Pacific/Middle East/Africa region have grown by roughly Rs.500 crore and a similar growth was also seen for its sales in Europe too. As for its sales in the Americas and other corporate entities, they have improved by more than Rs.1,000 crore.
- Considering the net profit for the period, Apollo Tyres made an impressive Rs.723.8 crore. In comparison to the profit made for the year prior to this, the number has reduced by around Rs.300 crore on account of a substantial increase in the expenses.
- The company’s total assets for the year stood at Rs.20,153 crore - an increase of roughly Rs.5,000 from the previous year. In the liabilities column, however, the company’s borrowings have increased from Rs.2,155 crore to Rs.3,700 crore. Consequently, Apollo Tyres’ debt-equity ratio has also increased from 0.32 to 0.40. Its earnings per share for the year reduced to Rs.13.43 from Rs.21.59.
Apollo Tyres Limited Stock Trends in 2018
- The performance of Apollo Tyres stock in 2018 has been quite different from other companies. The scrip started the year trading at around Rs.268.85 and in the first week, the price moved up to cross the Rs.280 mark. This rise was immediately followed by a gradual decline in the share price of Apollo Tyres. This fall came on the account of turbulence in the international markets. The closing price on January 31, 2018 was Rs.254.85.
- In February, when the country’s benchmark indices such as NIFTY 50 and BSE SENSEX were shedding points dramatically, Apollo Tyres stocks were in a rally of their own. Driven by financial results updates, the scrip rose in the first half of the month to retreat back to its previous levels at around Rs.278. However, the stocks were still quite volatile as they continued to undergo fluctuations. The closing price at the end of the month was Rs.274.55 on the National Stock Exchange.
- The month of March was an uneventful one for the investors. The price didn’t vary a lot for most of the month. In the final week, however, the shares commenced a bull run and this continued all the way through April. The Apollo Tyres share price hit its 52-week high in mid-April at Rs.307.25. This was an incredible rise by the scrip and it was supported by an increase in BSE SENSEX as well.
- Following this meteoric surge in value, the Apollo Tyre shares couldn’t find their bearings at levels above Rs.300. They ended the month of April at Rs.294.35. Through the course of May and June, the stock price of Apollo Tyres exhibited bearish behaviour. From its levels at around Rs.290 in the start of May, the stock descended to Rs.250 in the final days of June. In July, however, the stocks started to make up for their previous losses.
Apollo Tyres Limited Stock Trends in 2016 and 2017
- At the start of 2016 January, the share price of Apollo Tyres was at levels around Rs.155. The price dipped by roughly 10% to descend into the Rs.140s in early February. In the second half of the month, the shares started a bull run which continued until early April. The price soared to cross the Rs.170 mark in the period.
- The stock price of Apollo Tyres, through the months of April and May, went down gradually. The scrip lost 10% and the shares went down to be traded at levels around Rs.145. It wasn’t until July that the prices started to rise again. Although the rise was marginal, investors were optimistic about the stock. The closing price at the end of July was Rs.163.
- In early August, an interim dividend of 200% was announced by the company. This was followed by an impressive rise in the share price of Apollo Tyres Limited. Starting in early August, the price moved up from around Rs.160 to Rs.224 by early October. This translates into an increase of more than 30% in value in under two months.
- This rise was followed by a bear run which witnessed the scrip shed all its previous gains. By early December, the stock price of Apollo Tyres had descended back to its previous levels at Rs.190. The shares ended the year at Rs.184.90 - an increase of more than 15% since the start of the year.
- The first two months of 2017 were dull for the investors. The shares lost less than 5% over the course of January and February. The stock price started to rise in March and by the end of the month, the shares had ascended back to their previous levels at Rs.208.
- The prices continued to rise through April as well. The Apollo Tyres share price improved by more than 15% in the month to cross the Rs.245 mark. The shares went down by 10% in May but they still managed to retain their bearings at levels above Rs.225. The prices rose once again in June and this time, the shares found themselves in the Rs.260 territory. A final dividend of 300% was also announced in the month.
- The scrip made marginal gains over the course of July. In early August, a sharp spike was seen in the price driven by financial result update. As a result, the share price crossed the Rs.280 mark but almost immediately followed it with a nosedive. Over the course of September, the price went down and Apollo Tyres shares retreated back to their previous levels at around Rs.240.
- The scrip was bearish for most of September and October. The prices started to move up once again in late November and the shares managed to end the year at Rs.268.25. This marked an increase of roughly 40% since the start of the year.
Should you invest in Apollo Tyres Limited?
- For the year ended on March 31, 2018, Apollo Tyres Limited reported a good increase in revenues from operations. The company has consistently displayed this trend over the last couple of years.
- Considering the performance of the stock, Apollo Tyres shares delivered more than 40% returns over the course of 2017. The stock has managed to perform exceptionally well in 2018, despite turbulence in the international markets. In fact, it is one of the few stocks to have not shed more than 15% this year.
- In comparison to its peers, Apollo Tyres is second only to MRF in terms of sales turnover. The company is built on strong foundations and is fundamentally strong. Over the years, its debt-equity ratio has reduced but in the last fiscal year, it increased to 0.40 on account of an increase in long-term borrowings. Furthermore, its earnings per share has also reduced.
- Apollo Tyres Limited has a strong presence in India and European markets. It has also done well in the Asia Pacific region. While the stock cannot be considered to be a mult-bagger, it is certainly a good stock to have in your portfolio as it can deliver decent returns. However, you should conduct your own research before investing.
Apollo Tyres Limited is a tyre manufacturer based in Gurgaon, India. The company manufactures tyres for commercial, passenger, two-wheelers, industrial, and farm vehicles. Apollo Tyres Limited has a strong presence in domestic and international markets. It has four manufacturing units in India, one in Hungary, and one in the Netherlands. The company has four key brands in total - Apollo, Vredestein, Kaizen, and Regal and each of these brands focus on a specific region.
History of the Company
Apollo Tyres Limited was incorporated in the year 1972 and the company was promoted by Bharat Steel Tubes Limited, Raunaq International Private Limited, Jacob Thomas, Raunaq Singh, and Mathew T. Marattukalam. The company issued equity shares soon thereafter. Over the years, the company expanded its global footprint with a focus on European and Indian markets. The company’s first manufacturing unit was established in Perambra, Kerala, and this was soon followed with a second plant in Gujarat. This was subsequently followed by additional units in India and a manufacturing unit each in the Netherlands and Hungary.
Management of the Company
Mr. Onkar Singh Kanwar - Chairman & Managing Director, Apollo Tyres Limited
Mr. Kanwar founded Apollo International Limited in 1994 and has been serving as the Managing Director since 2006. He also serves as the Managing Director of the Apollo Group. Over the course of his illustrious career, he has held several key positions like Director of UFO India Limited, Managing Director and Chief Executive Officer of PTL Enterprises Limited and Vice Chairman and President of the International Chamber of Commerce. He has also been imparted with the responsibility of leading several national and international industry organisations. He is an alumnus of the University of California.
Mr. Neeraj Kanwar - Vice Chairman and Managing Director, Apollo Tyres Limited
Mr. Neeraj Kanwar serves as a Member of the Management Board at Apollo Tyres Limited. In addition to this, he also serves as the Managing Director - a post he has held since 2009. Prior to his appointment to the present post, Mr. Kanwar held various crucial posts in the organisation such as Chief Operating Officer, Manager of Product Planning and Strategic Planning, and Head of Manufacturing. Before joining Apollo Tyres Limited, Mr. Kanwar worked with Global Finance Limited. He holds a Bachelor’s degree in Industrial Engineering and has finished his specialisation in Management Systems. He is an alumnus of Lehigh University, USA.
Francesco Gori - Non-Executive Independent Director, Apollo Tyres Limited
Mr. Gori has been a part of the Management Board at Apollo Tyres since November 2015. He serves in the capacity of Advisor of Strategy. Prior to joining Apollo Tyres, he worked with Pirelli Tyre S.p.A as the Chief Executive Officer, the Managing Director of Pirelli Tyre & Parts, and as the Markets Director. He has also been actively involved with the Automobile division of Pirelli Tyre S.p.A, having served as its Director of Business Development, and Sales Director. Needless to mention, he has been a part of the tyre sector for more than two decades now. Mr. Gori holds a degree in Economics from the Universita Degli Studi, Florence.
Apollo Tyres Listings in NSE, BSE, and Indices
Apollo Tyres equity shares are available for trading on the National Stock Exchange of India Limited and the Bombay Stock Exchange. The respective codes for the same have been mentioned below.
- NSE Code: APOLLOTYREEQ
- BSE Code: 500877
- ISIN: INE438A01022
- Sector: Tyres
Coming to the stock market indices, the company comprises the following:
- NIFTY 200
- NIFTY 500
- NIFTY Auto
- NIFTY High Beta 50
- NIFTY Midcap 100
- NIFTY Midcap 50
- S&P BSE 500
- S&P BSE Auto
- S&P BSE 200
- S&P BSE AllCap
- S&P BSE MidSmallCap
7, Institutional Area
Contact number: +91-124-272-1000
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