Apollo Tyres (APOLLOTYRE)
CyclicalFairStock Score: 69/100 — STEADY
Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹444.1 |
| Market Cap | ₹28,092.94 Cr |
| P/E Ratio | 16.47 |
| ROCE | 11.44% |
| ROE | 6.27% |
| Dividend Yield | 2.48% |
| Profit Growth | 57.04% |
| Debt/Equity | 0.22 |
| Sales Growth | 56.06% |
| Free Cash Flow | ₹1,621 Cr |
| Promoter Holding | 36.93% |
| 52-Week Range | ₹365.3 — ₹540.5 |
| Sector | Auto Components |
| Book Value | ₹264.24 |
Strengths
- Low leverage: Debt/Equity of 0.29 provides financial flexibility
- Strong cash generation: Free Cash Flow of ₹1,621 Cr
- Solid operational health: Piotroski F-Score of 8/9
- Stable revenue trajectory: 5-year revenue CAGR of 8.47%
- Balance sheet safety: Altman Z-Score of 2.65 suggests low near-term distress risk
Concerns
- Weak shareholder returns: ROE of only 6.27%
- Declining profitability: Profit growth of -28.26%
- Expensive on conservative metrics: Price ₹432.30 is well above Graham Number ₹276.17
- Very high EV/EBITDA of 69.94, leaving little room for earnings disappointment
AI Analysis
Apollo Tyres is a familiar name, but the figures leave me cautious. At ₹432, the market capitalisation is ₹28,837 Cr and the stock trades at a P/E near 19.7, while profits have fallen 28.26% in the latest year. A Graham investor starts with margin of safety: book value is ₹232.49 and the Graham Number is only ₹276.17, so at the current price I am paying a considerable premium over conservative value. The balance sheet is acceptable—debt to equity is 0.29 and free cash flow is ₹1,621 Cr, which shows some earning power. The Piotroski score of 8/9 suggests the company is not financially deteriorating in every dimension. But the business economics are mediocre: return on equity is just 6.27%, far below what a good franchise should earn. ROCE at 11.44% is moderate. Tyres are inherently cyclical and competitive, and the latest quarter's net profit of ₹471 Cr, while positive, does not convince me that margins have turned. The five-year revenue CAGR of 8.47% is steady, but the profit decline tells me the cycle may be against the company. The DCF value of ₹1,366.53 is interesting, but I do not trust a single DCF over the evident cyclicality and the extremely high EV/EBITDA of 69.94. I would rather wait for a better margin of safety and clearer evidence of margin recovery. This is not a wonderful business at a fair price; it is a cyclical business at a full price.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer