Fact based stock research
Apollo Tyres (NSEI:APOLLOTYRE)

INE438A01022

How to read the ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Apollo Tyres stock research in summary

corporate.apollotyres.com

ANALYSIS: With an Obermatt Combined Rank of 82 (better than 82% compared with investment alternatives), Apollo Tyres (Tires & Rubber, India) shares have much better financial characteristics than comparable stocks. Shares of Apollo Tyres are a good value (attractively priced) with a consolidated Value Rank of 92 (better than 92% of alternatives), show above-average growth (Growth Rank of 75) but are riskily financed (Safety Rank of 21), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 82, is a strong buy recommendation based on Apollo Tyres's financial characteristics. As the company Apollo Tyres's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 92) and above-average growth (Obermatt Growth Rank of 75), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 21) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	92
Growth Rank	75
Safety Rank	21
Combined Rank	82

Country	India
Industry	Tires & Rubber
Index	SDG 1, SDG 3, SDG 5, SDG 8
Size class	Large

This stock has achievements: Top 10 Stock.

18-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Apollo Tyres

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	88	83	86	92
GROWTH
GROWTH	97	77	87	75
SAFETY
SAFETY	5	14	23	21
SENTIMENT
SENTIMENT	n/a	46	76	^new
360° VIEW
360° VIEW	n/a	63	89	^new

Most recent update of the stock research: 18-Apr-2024. Financial reporting date used for calculating ranks: 31-Dec-2023. Stock research history is based on the Obermatt Method. The higher the rank, the better Apollo Tyres is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	88	83	86	92
GROWTH
GROWTH	97	77	87	75
SAFETY
SAFETY	5	14	23	21
COMBINED
COMBINED	78	64	88	82

Last update of combined financial performance: 18-Apr-2024. Stock analysis on combined financial performance: The higher the rank of Apollo Tyres the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 92 (better than 92% compared with alternatives) for 2024, Apollo Tyres shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Apollo Tyres. Price-to-Sales is 81 which means that the stock price compared with what market professionals expect for future sales is lower than for 81% of comparable companies, indicating a good value for Apollo Tyres's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 80% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 77. Compared with other companies in the same industry, dividend yields of Apollo Tyres are expected to be higher than for 68% of all competitors (a Dividend Yield rank of 68). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 92, is a buy recommendation based on Apollo Tyres's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Apollo Tyres based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	84	87	76	81
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	85	77	76	80
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	80	88	76	77
DIVIDEND YIELD
DIVIDEND YIELD	59	58	71	68
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	88	83	86	92

Last update of Value Rank: 18-Apr-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Apollo Tyres; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 75 (better than 75% compared with alternatives) for 2024, Apollo Tyres shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Apollo Tyres. Profit Growth has a rank of 85 which means that currently professionals expect the company to grow its profits more than 85% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 95, and Stock Returns has a rank of 64 which means that the stock returns have recently been above 64% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 30 (70% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 75, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	86	27	29	30
PROFIT GROWTH
PROFIT GROWTH	n/a	75	87	85
CAPITAL GROWTH
CAPITAL GROWTH	n/a	88	90	95
STOCK RETURNS
STOCK RETURNS	92	55	75	64
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	97	77	87	75

Last update of Growth Rank: 18-Apr-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Apollo Tyres.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 21 (better than 21% compared with alternatives), the company Apollo Tyres has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Apollo Tyres is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Apollo Tyres. Liquidity is at 52, meaning the company generates more profit to service its debt than 52% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 33, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 67% of its competitors. Leverage is also high at a rank of 20, which means that the company has an above-average debt-to-equity ratio. It has more debt than 80% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 21 (worse than 79% compared with alternatives), Apollo Tyres has a financing structure that is significantly riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	10	20	18	20
REFINANCING
REFINANCING	24	25	35	33
LIQUIDITY
LIQUIDITY	34	23	50	52
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	5	14	23	21

Last update of Safety Rank: 18-Apr-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Apollo Tyres and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	55	66	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	48	47	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	66	100	^new
MARKET PULSE
MARKET PULSE	n/a	25	38	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	46	76	^new

Last update of Sentiment Rank: 18-Apr-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Apollo Tyres.
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