Shares of Apollo Tyres Ltd saw an uplift in the stock market today after global brokerage JP Morgan revised the company's share price target upward, citing recovery in tyre volumes and business improvements. The target adjustment from Rs 475 (Rs 1 = $0.012) to Rs 535 reflects confidence in the tyre manufacturer's operational recovery in India and enhancements in its European business and capital allocation strategies.
The announcement led to a more than 2% increase in Apollo Tyres' share value on the National Stock Exchange (NSE), with the price peaking at Rs 465.85, before settling at Rs 454.95 by mid-afternoon. This positive movement is part of a continuing trend for the company, which has experienced substantial growth over recent periods.
Investors have been particularly optimistic about Apollo Tyres' performance, as the company has delivered over a 10% return in the past month and has seen its shares surge by nearly 40% year-to-date (YTD). This impressive rally has significantly outpaced the Nifty 50's increase of over 12%.
Supporting this investor confidence is JP Morgan's overweight rating on Apollo Tyres' stock. The company has reported a robust return on capital employed (ROCE) of 16%, which is already higher than its forecasted target for FY26. Additionally, Apollo Tyres stands on solid financial footing, demonstrated by a net debt/EBITDA ratio of merely one times.
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