Shares of this mid-cap stock involved in the Tyre industry fell around 3 percent on Thursday after operations at one of the company’s manufacturing plants were stopped by the labour union representatives due to concerns related to the long-term settlement agreement.
With a market capitalization of Rs 23,393.94 crores, the stocks of Apollo Tyres Limited opened their trading hour on Thursday at Rs 369.85 and currently trade at Rs 368.35, slipping around 3 percent as compared to the previous close of Rs 378.90 apiece.
Such bearish sentiments around the company’s stock were observed after a regulatory filing published with the Bombay Stock Exchange (BSE) dated 20th September 2023 intimating about a disruption in the company’s manufacturing unit based in Limda, Gujarat.
The operations have stopped due to certain concerns amongst employees with regard to the renewal of the long-term settlement agreement.
During the past couple of financial years, the company has consistently increased its operating revenues as well as net profit numbers. The operating revenues rose from Rs 20,947.58 crores during FY21-22 to Rs 24,568.13 crores during FY22-23, and, the net profits, during the same time horizon, went up from Rs 638.6 crores to Rs 1,104.64 crores.
In addition to the above, the profitability metrics such as the return on equity (RoE) as well as return on capital employed (RoCE) saw an increase with the former going up from 5.51 percent during FY21-22 to 8.97 percent during FY22-23, and, the latter moving up from 7.34 percent to 10.87 percent.
The latest shareholding data of the company portrays the Promoters holding a 37.34 percent stake, and the Foreign Institutional Investors (FIIs) holding a considerable stake of 23.33 percent in the company.
Apollo Tyres Limited is engaged in the business of manufacturing as well as selling tyres. The company’s product portfolio comprises tyres for commercial, passenger, and off-highway vehicles.
The geographical segments of the company include the Asia Pacific, Europe, Africa, and the Middle East region. The company sells its products under two key brands such as ‘Apollo’ and ‘Vredestein’.
Written by Amit Madnani
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