About the Company:
Apollo Tyres Ltd is the biggest tyre manufacturer. It was incorporated in 1972, headquartered in Gurgaon, India.
QoQ & YoY Performance:
India’s leading Tyre Manufacturing Company has declared the results for the second quarter of the fiscal year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded to Rs. 3,985.8 crores, declined by 7.98% in the September quarter of FY20. Total expenditure (excluding interest and depreciation expenses) are Rs. 3,553 crores, decreased by 7.85%. EBITDA numbers slipped by 13.21%.
- YoY Performance: The Company has reported 6.38% drop in sales/revenue and expenditure (excluding interest and depreciation expenses) of the company have witnessed a plunge of 6.24%. EBITDA numbers down by 9.07%.
- Profitability of the company: Net profits of the company landed to Rs. 83.03 crores, decline by 41.33% QoQ and plunged by 43.15% YoY.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock is trading at Rs.180.65 per share due to poor financial performance led by weak domestic demand and poor automotive sector but as per recent improvement in SIAM data, we are expecting a bounce-back on this sector in the near term. Hence, we recommend it to “BUY” with the target of 216 levels for the next 6-months.