Apollo Tyres Ltd.
NSE: APOLLOTYREApollo Tyres Ltd.: A 30-second snapshot
Apollo Tyres (₹385.3) is the cheapest stock in its Auto peer group on a trailing PE basis (17.79 vs sector peers ranging from 19.5 to 35.3), yet carries the lowest ROE (8.72%) and has declined 22.19% over the past year. Five-year earnings have compounded sharply at 242.6% while the stock has de-rated, with the price now 18.1% below its 200-DMA. D/E of 21.987 is elevated but the debt trend is falling and FCF has been positive in 4 of available years.
P/E
17.8
Forward P/E
11.9
ROE
+8.7%
Debt / Equity
21.99
Profit Margin
+4.8%
Div. Yield
+2.1%
5Y ROE > 15%
0/5
5Y FCF > 0
4/5
Quality
60/100
News
5 headlines · 3 positive · 0 negative
Apollo Tyres Ltd stock (INE404A01024): earnings jump draws attention to margins and global demand - AD HOC NEWS
AD HOC NEWS
APOLLOTYRE: Strong revenue and profit growth, higher dividend, and major restructuring costs recognized - TradingView
TradingView
Apollo Tyres Ltd stock (INE404A01024): earnings momentum and EV focus draw attention - AD HOC NEWS
AD HOC NEWS
Apollo Tyres Ltd stock (INE404A01024): shares ease while investors focus on valuation after latest I - AD HOC NEWS
AD HOC NEWS
Transcript : Apollo Tyres Limited, Q4 2026 Earnings Call, May 15, 2026 - marketscreener.com
marketscreener.com
Recent context
- ·Q4 2026 earnings call (May 15) and related coverage cited strong revenue and profit growth alongside major restructuring costs being recognized — headline earnings momentum is present but restructuring charges are a near-term income statement drag.
- ·Recent news flow references Apollo Tyres EV focus as a product portfolio shift; EV-segment tyre demand is growing but remains a fraction of total volumes, and execution on this pivot is unproven at scale.
- ·A late-May headline noted shares easing while investors focus on valuation after the latest results, consistent with the -15.27% 3-month price move even as earnings newsflow was broadly constructive.
Strengths
- +Lowest trailing PE (17.79) among the 6-stock Auto peer group, where peers range from 19.5 (M&M) to 35.3 (Eicher Motors), and forward PE compresses further to 11.88.
- +Five-year revenue growth of 14.2% alongside 5-year earnings growth of 242.6% indicates a sustained improvement in the earnings conversion of revenue over the period.
- +FCF was positive in 4 of available years and the debt-to-equity trend is classified as falling, suggesting gradual balance sheet repair despite an elevated absolute D/E.
- +Dividend yield of 2.15% provides an income return component while the stock trades near multi-year lows, with the 52-week drawdown at -28.71%.
Weaknesses
- −Price has been below the 200-DMA for a sustained period (current gap: -18.1%) with a 52-week drawdown of -28.71% and acceleration in the 3-month window (-15.27%), indicating a broad-based loss of price momentum.
- −ROE of 8.72% is the lowest among the 5 peers with available ROE data (peers: 28.05%, 23.77%, 18.75%, 14.43%, -1.12%); zero years above 15% in the persistence window indicates structurally below-threshold capital returns.
- −Trailing profit margin of 4.82% leaves limited buffer for input cost shocks (natural rubber, carbon black, crude-linked materials) typical in tyre manufacturing.
- −D/E of 21.987, though on a falling trend, remains elevated; in a thin-margin, capital-intensive business, sustained interest obligations can amplify earnings volatility in a downcycle.
Open questions
- ?Does the 242.6% five-year earnings growth reflect a structural improvement in pricing power and cost management, or does it largely reflect a recovery from a cyclically depressed base?
- ?At what debt-service coverage ratio does the D/E of 21.987 become a material constraint on capex or dividends, and how has that ratio trended over the last three reported years?
- ?What proportion of Apollo Tyres revenue is exposed to replacement vs OEM demand, and how would a slowdown in either channel affect the thin 4.82% profit margin?
- ?How does Apollo Tyres European operations performance compare to its India business, given that European restructuring costs have been a recurring theme in recent results?
Peer comparison: Auto
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| APOLLOTYRE | Apollo Tyres Ltd.You're viewing | 17.8 | +8.7% | 55 |
| Industry avg | across 5 peers | 27.4 | +16.8% | 44 |
| EICHERMOT | Eicher Motors Ltd. | 35.3 | +23.8% | 66 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 27.0 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 19.5 | +18.8% | 52 |
| MARUTI | Maruti Suzuki India Ltd. | 27.7 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹385.30
SMA 50
₹411.94
SMA 200
₹470.38
RSI (14)
41.4 (neutral)
From 52w high
-28.7%
1Y return
-22.2%
3M return
-15.3%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highPrice at ₹385.3 is below both the 50-DMA (₹411.94) and 200-DMA (₹470.38), with a 52-week drawdown of -28.71% and a 1-year price decline of -22.19%. The 3-month move of -15.27% shows the downtrend has persisted across multiple timeframes, with the nearest support at ₹365.3 (5.2% below current price).
- mediumD/E of 21.987 is elevated for a tyre manufacturer; while the debt trend is classified as falling and FCF was positive in 4 of available years, the absolute leverage level warrants scrutiny in a thin-margin business. ROE stands at 8.72% with zero years above 15% in the persistence window, indicating sustained below-threshold capital returns.
- mediumTrailing profit margin of 4.82% is thin for a capital-intensive manufacturer. Fundamental consistency score is 46/100. Forward PE of 11.88 vs trailing PE of 17.79 implies a ~50% earnings step-up in the next period — a material gap relative to the current margin base.
- lowNews sample covers only 5 articles; the 3-positive / 2-neutral / 0-negative split may not fully represent the broader information environment at this sample size.
Cross-section contradictions
- 5-year earnings growth of 242.6% and positive FCF in 4 of available years contrast with the stock declining 22.19% over 1 year and trading 18.1% below its 200-DMA (₹470.38), suggesting the market has de-rated despite sustained earnings expansion.
- Forward PE of 11.88 is 33% below trailing PE of 17.79, implying a substantial projected earnings step-up; this sits alongside a trailing profit margin of 4.82% and a consistency score of 46/100.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 1 Jun 2026 · rotates through NIFTY 500 every ~5 days