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Apollo Tyres Ltd logo

Apollo Tyres Ltd

NSE: APOLLOTYRE BSE: 500877

507.85

(-0.94)%

Thu, 05 Feb 2026, 10:27 pm

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.8x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (4.8x coverage).
  • Apollo Tyres's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Apollo Tyres's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Apollo Tyres's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Apollo Tyres's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • An improvement in Apollo Tyres's performance (ROE) is expected over the next 3 years.
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Cons

  • Cash flow for Apollo Tyres is expected to decrease over the next 2 years.
  • Apollo Tyres's earnings are expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
  • Apollo Tyres's earnings growth is positive but not above the India market average.
  • Apollo Tyres's earnings are expected to decrease over the next year.
  • Apollo Tyres's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Apollo Tyres is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN Auto Components industry average.
  • Apollo Tyres's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Apollo Tyres's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
  • Apollo Tyres's revenue growth is positive but not above the India market average.

health

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Pros

  • Apollo Tyres is profitable, therefore cash runway is not a concern.
  • Apollo Tyres is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (34%, greater than 20% of total debt).
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Cons

  • Apollo Tyres's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not covered by short term assets, assets are 0.7x debt.
  • Apollo Tyres's long term commitments exceed its cash and other short term assets.
  • The level of debt compared to net worth has increased over the past 5 years (21.5% vs 74.5% today).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.8x annual interest expense, ideally 3x coverage).
  • Apollo Tyres's level of debt (74.5%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Apollo Tyres board of directors is about average.
  • Onkar's compensation has been consistent with company performance over the past year, both up more than 20%.
  • More shares have been bought than sold by Apollo Tyres individual insiders in the past 3 months.
  • The average tenure for the Apollo Tyres management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • Onkar's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Apollo Tyres has significant price volatility in the past 3 months.

    past

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    Pros

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      Cons

      • Apollo Tyres's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Apollo Tyres's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
      • Apollo Tyres used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
      • Apollo Tyres's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Apollo Tyres has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Apollo Tyres's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.

      value

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      Pros

      • Apollo Tyres is good value based on assets compared to the IN Auto Components industry average.
      • Apollo Tyres is good value based on earnings compared to the IN Auto Components industry average.
      • NSEI:APOLLOTYRE is up 15.4% outperforming the Auto Components industry which returned 13.2% over the past month.
      • NSEI:APOLLOTYRE is up 15.4% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Apollo Tyres's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Apollo Tyres's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Apollo Tyres is poor value based on expected growth next year.
      • Apollo Tyres is overvalued based on earnings compared to the India market.
      • APOLLOTYRE underperformed the Auto Components industry which returned -22.4% over the past year.
      • APOLLOTYRE underperformed the Market in India which returned -14.5% over the past year.

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