Apollo Tyres Ltd

NSE: APOLLOTYRE BSE: 500877

₹373.35

(0.68%)

Sat, 30 May 2026, 04:05 pm

Market Cap236.61B

PE Ratio17.25

Dividend2.28

Consumer Durables

Automotive Aftermarket

24.5K

Apollo Tyres Analysis

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%).

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%).

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.

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.

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).

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.

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.

Cons

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

Pros

Cons

Pros

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.

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.

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.