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Apollo Tires: Shares of tire maker will give 73% return! Can make a new high by coming out of long correction – News

Apollo Tires Stock Price: The stock of Apollo Tires has been undergoing a correction for the last few months. After making a new high of 52 weeks on January 17 this year, there is continuous weakness in the stock. So far this year, the stock has lost about 24 percent and about 30 percent from its 1-year high. If you see, the stock has remained in a range for a long time. However, now brokerage house ICICI Securities is seeing a big rally in this. The brokerage house has estimated the stock to rise by more than 70 percent from the current price. The brokerage house says that the company will benefit from the demand recovery in the domestic and global markets.

Domestic demand improves

According to a report by brokerage house ICICI Securities, Apollo Tires has a revenue target of $ 500 million by FY26 with an EBITDA margin of 15 percent. In this, the revenue target from India operation is 300-350 million dollars. While the revenue target from EU operations is $150 million. The brokerage says that the domestic demand is improving, while Apollo Tires expects the replacement demand to improve, which can help the company to increase the market share. The company is also focusing on increasing the capacity in different plants.

benefit of price hike

Apollo Tires does not have plans for capex expansion in India or the EU. The focus is on better RoCEs. The company had hiked the price by 3-4%/8-9% in India and EU in June 2022, which will benefit further. ICV is doing demand pickup across segments and tippers. The capacity utilization capacity of the company has increased. The company expects better growth in FY23-FY24E. The brokerage house has given investment advice in the stock and has given a target price of Rs 305. In terms of current price of Rs 176, it is expected to return 73 per cent.

(Disclaimer: Stock investment advice is given by the brokerage house. These are not the personal views of digitnews. Markets are risky, so take expert opinion before investing.)

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