Apollo Tyres (APOLLOTYRE)

FairStock Score: 69/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I’m wearing both hats here: Graham’s demand for margin of safety and Buffett’s preference for high-return, conservatively financed businesses. Apollo Tyres at ₹444.10 has a ₹28,093 Cr market cap. The balance sheet looks sensible: debt/equity is only 0.22, FCF is ₹1,621 Cr, dividend yield is 2.48%, and Piotroski F-Score is 8/9. Those are real positives. The latest quarter also shows ₹7,743 Cr sales and ₹471 Cr net profit, while reported sales growth of 56.06% and profit growth of 57.04% are eye-catching. But I must ask whether that is durable. The five-year revenue CAGR is just 9.82%, and ROE is 6.27% with ROCE 11.44%. For a tyre business, those returns suggest limited pricing power and no obvious wide moat. Valuation gives mixed signals. P/E 16.47 and P/B 1.68 look reasonable, and DCF intrinsic value is ₹1,366.53, well above the market price. However, Graham Number is ₹276.17 versus the ₹444.10 price, giving a margin of safety of -64.41%, so it fails Graham’s defensive test. EV/EBITDA of 69.94 is also a major red flag. Altman Z-Score at 2.65 sits in the grey zone. Promoter holding of 36.93% gives some alignment, but not enough to override the low returns. I would classify Apollo as Cyclical: better than a turnaround, but not a fast grower. I’d wait for higher ROCE/ROE and a price closer to Graham’s number before calling it a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer