Summary Marketline's Apollo Tyres Ltd Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments report includes business description, detailed reports on mergers and acquisitions (M&A), divestments, capital raisings, venture capital investments, ownership and partnership transactions undertaken by Apollo Tyres Ltd - Mergers & Acquisitions (M&A), Partnerships & Alliances since January2007. Marketline's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments r...
Summary Apollo Tyres Ltd - Company Profile and SWOT Analysis, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights Apollo Tyres Ltd (Apollo Tyres) is a manufacturer, distributor, and seller of tires, tubes, and flaps. The company's primary activities include the production of tires for various types of vehicles and...
BALKRISHNA INDUSTRIES: Revenue beat driven by strong volume growth (BIL IN, Mkt Cap USD5.3b, CMP INR2164, TP INR2300, 6% Upside, Neutral) Balkrishna Industries (BIL)'s 1QFY23 operating performance was largely in line. While strong volume growth drove a beat on revenue, margins were hurt by high RM costs and higher other expenses. We cut our FY23E EPS by 5% to account for higher RM and freight costs and maintain our FY24E EPS. Maintain Neutral with a TP of INR2,300 (premised on ~22x Sep'2...
APOLLO TYRES (IN), a company active in the Tires industry, loses a star(s) at the fundamental level and sees its general evaluation downgraded. The independent financial analyst theScreener just removed a fundamental star(s) for a 3 over 4-star rating. As such, market behaviour remains unchanged and is evaluated as moderately risky. theScreener believes that the loss of a star(s) merits downgrade to the general evaluation of the title, which passes to Neutral. As of the analysis date January 25,...
The independent financial analyst theScreener just slightly lowered the general evaluation of BALKRISHNA INDUSTRIES (IN), active in the Tires industry. As regards its fundamental valuation, the title confirms its rating of 4 out of 4 stars while its market behaviour remains unchanged and can be qualified as defensive. However, a marginally less favourable environment forces theScreener to downgrade slightly the title, which now shows an overall rating of Slightly Positive. As of the analysis dat...
BALKRISHNA INDUSTRIES: Strong revenue growth dilutes RM cost inflation (BIL IN, Mkt Cap USD6.1b, CMP INR2361, TP INR2600, 10% Upside, Neutral) BIL’s 2QFY22 performance was led by strong demand tailwinds across geographies and segments, leading to its highest ever volumes. Aided by launches, it is gaining market share in geographies, including the US. We maintain our FY22E/FY23E EPS as upgrades in volume is being offset by higher RM costs. We maintain our Neutral rating due to rich valua...
MRF: Below est; Higher RM, other cost impact margins (MRF IN, Mkt Cap USD4.5b, CMP INR78520, TP INR73700, 6% Downside, Neutral) MRF's 2QFY22 performance was impacted by RM cost inflation and higher other cost. MRF lagged peers in revenue growth due to weaker performance of TBB and farm segment. The industry is taking gradual price increases to dilute impact of severe cost inflation. We cut our FY22E/FY23E EPS by ~29%/14% to factor in for RM cost inflation and higher other expenses. Maint...
MRF (IN), a company active in the Tires industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 2 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date October 26, 2021, the closing price was INR 80,093.75 and its expected...
MRF: Operating de-leverage impacts performance (MRF IN, Mkt Cap USD4.6b, CMP INR80014, TP INR83730, 5% Upside, Neutral) Price increases to pass on cost inflation happening gradually MRF's 1QFY22 operating performance was impacted by operating deleverage and RM cost inflation. The industry is taking gradual price increases to dilute the impact of severe cost inflation. We cut our FY22E/FY23E EPS by ~11%/3%, factoring in the RM cost inflation. Maintain Neutral. Revenue decline in-line...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
APOLLO TYRES: Raw material inflation hurts performance (APTY IN, Mkt Cap USD1.9b, CMP INR222, TP INR290, 30% Upside, Buy) Price increases taken in Jul-Aug'21 to largely absorb full cost inflation APTY's 1QFY22 operating performance was impacted by higher RM cost in its India operations as well impact of the transition in its EU operations. Demand recovery in India as well as consistent price hikes will drive a margin recovery in India. Turnaround in its EU operations and profitability in...
AUTOMOBILES – TYRES: Ready to roll; Return of growth, supported by timely capacity addition | APTY is our top pick The Indian Tyre industry is expected to recover from five years of weakness and be on a linear growth path (~12% CAGR over FY21-25E), supported by timely capacity expansion across companies. Improving demand, stable competitive intensity, and peak capex (capex of INR116b over FY22-24E v/s INR135.5b over FY19-21) augurs well for profitability. We estimate 2W/PCR/T&B tyre volum...
A director at MRF Limited bought 2,000 shares at 80,107.818INR and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearl...
A director at Apollo Tyres Ltd bought 242,013 shares at 237.369INR and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years cl...
Correction Lows Established -- Add Broad Exposure Key $70 support on the MSCI ACWI (ACWI-US) held strong last week, and ACWI-US is now inflecting topside its bullish falling wedge pattern. This bullish price action combined with market dynamics which remain mostly healthy lead us to believe the lows of this recent correction are in. · Key Levels On MSCI ACWI & EM Indexes. Key support levels to watch moving forward include $70 on ACWI-US and $42.30 on EEM-US; if these support levels hol...
Q2FY20 results Operating performance below expectations: Apollo Tyres operating profit at Rs4.3bn (-8% yoy) was ~10%/5% below our and consensus expectations largely on lower than expected revenues. Adjusted PAT at Rs830mn (down 55% yoy) was also ~38% below estimates was impacted due to lower other income, higher interest cost and a sharp rise in depreciation (up 40% yoy). OEMs drag domestic business; Europe remains weak: On a consolidated basis, APTY’s revenues declined to Rs39.9bn (-6% yoy)...
After numerous trade war escalations and setbacks, it is easy to become resigned to the belief that there will be no end to the trade war. We have come to expect the unexpected when it comes to President Trump's tactics, so the best course of action may be to assume nothing. Last week's “Phase 1†US-China trade agreement is certainly a step in the right direction, and for now we are taking the truce at face value as a positive development while also knowing that the risk of setbacks/escalati...
Q1FY20 results Operating performance above expectations: Apollo Tyres operating profit at Rs4.7bn (-10% yoy) was ~7% above expectations. PAT at Rs1.4bn (down 40% yoy) was also ~7% above estimates. Europe remains weak; domestic surprises a bit: On a consolidated basis, APTY’s revenues grew to Rs43.3bn (+1% yoy) with the India business growing by ~2%yoy while Europe showed a marginal decline. Consolidated EBITDA margins came in at 11% (up 103 bps qoq; down 135 bps yoy) which was ~60bps above e...
We present key takeaways from our visit to Apollo Tyres’ (APTY) global R&D centre in Chennai. This is the company’s second R&D centre (the other in Netherlands focusses on the passenger car segment). We see APTYs R&D thrust as a key advantage but also expect R&D spends to rise, going forward (R&D spend rose at a CAGR of 23% over the past 5 years). Regulations in Europe and India to tighten: Tyre-related regulations in Europe are getting more challenging, with norms related to rolling resist...
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