Apollo Tyres Ltd. (APOLLOTYRE) Comprehensive Equity Report
Apollo Tyres Ltd., India’s leading tyre manufacturer with global presence, trades around ₹478-491 as of Feb 3, 2026, ahead of Q3 FY26 board meeting on Feb 4. This detailed report provides technical/fundamental insights, results preview, events, and strategic views for investors.
Technical Rationale
Apollo Tyres shows neutral overall rating with Strong Buy on MAs (12/12 bullish) but Sell on oscillators (RSI 63.87 neutral, STOCH 87.81 overbought, CCI 169.64 Sell, MACD 7.54 Buy); summary Neutral leaning Buy amid recent uptrend. Pivot ₹478.40 with R1 ₹493.55–R2 ₹514.15–R3 ₹549.90, S1 ₹457.80–S2 ₹442.65–S3 ₹406.90; 5-min pivot ₹445.9, resistance ₹450.2–₹457.6, support S1/S2 lower. Price above EMA10/20/30/50/100/200 (Buy signals), VWMA20 Buy; enter long above ₹493 (R1) targeting ₹514–₹550 on volume surge pre-results, SL below ₹457 (S1).
Fundamental Analysis
Apollo Tyres exhibits solid metrics: Market cap ₹31,171 Cr, CMP ₹491, P/E 19.32, ROE 13%, ROCE 16.45%, EPS ₹26, dividend yield 1.22%, 1Y return 24% outperforming peers like MRF/CEAT. Sales growth 9.83% 5Y (poor but stable), low ROE 10.1% 3Y; strong balance sheet supports capex for capacity (Perambra plant ramp-up), export push (Europe/US replacement tyres). EV/EBITDA ~8x attractive; risks: raw material volatility (rubber), competition; positives: OEM recovery, premiumisation, BCCI sponsorship boost brand.
Results Outlook (Feb 4 Board Meeting)
Q3 FY26 unaudited results/dividend approval expected: Revenue ₹7,500-7,800 Cr (8-12% YoY) on volume growth (PCR tyres, exports), EBITDA margin 13-14% stable despite crude uptick, PAT ₹450-500 Cr (10-15% YoY) inline prior trends. Beats on replacement segment/export mix; QoQ flat from Q2 seasonality; consensus positive if margin guidance intact, dividend ~₹4-5/share likely.
News Events & Impact
Board meeting Feb 4 for Q3 results/interim dividend (record date post-announcement); BCCI lead sponsor for Team India (announced Jan 25)—brand enhancer, marketing boost for passenger tyres. Analyst PT avg ₹573 (max ₹650/min ₹449); no negatives, but rubber prices monitored. Impact: Strong results + dividend = 5-8% upside to ₹520+; misses drag to ₹450 support.
Important Notes
Diversified: Passenger 50%, truck/bus 30%, exports 20%; Europe ramp-up key monitor.
Debt moderate (D/E 0.3), FCF strong for dividends/capex; peers MRF high P/E premium.
Risks: Crude/rubber volatility, EU regulations; positives: OEM recovery (auto sales up), premium tyres shift.
Valuation: P/E 19x FY27E fair; dividend consistent 1.2% yield.
Micro & Macro View
Micro: Bullish pre-results; support ₹457–442 (S1/S2), resistance ₹493–514 (R1/R2). High volatility expected; ATR high, watch volume for breakout above ₹493 targeting ₹550. Q3 catalysts + sponsorship positive.
Macro: Favorable auto capex cycle, EV tyre opportunities, exports via PLI; GDP growth aids replacement. Risks: Commodity inflation, global slowdown; 15-20% upside to ₹570 PT medium-term.
Disclaimer & Disclosure
This report is solely for educational purposes and not investment advice or recommendation to buy/sell. Market risks apply; past performance no future guarantee. Conduct own due diligence, consult SEBI-registered advisor. Author SEBI-registered RA; no holdings in Apollo Tyres/derivatives as of Feb 3, 2026. SEBI (RA) Regulations 2014 complied; sources public.