On Tuesday the share price of the company rose 7 percent and hit its 52-week high of Rs 485 from its previous close of Rs 453.05 after the company stake was sold by foreign portfolio investors through a block deal.
Foreign portfolio investor White Iris Investment sold 1.88 crores of shares or 3 percent of Apollo Tyres Ltd. The investment firm hopes to raise 100 million US dollars through this deal, as reported on December 18 on CNBC TV18.
The Apollo Tyre Block Deal’s floor price is set at Rs 440 per share, which represents a 10% discount to the current market price.
Looking at the Apolo Tyres Ltd financials, the net revenue increased by 5.4 percent year over year, from Rs 5,956 crore in Q2FY23 to Rs 6,279 crore in Q2FY24. Their revenue rose by 0.5 percent sequentially from Rs 6,244 crore in Q1FY24 to the current levels.
In addition, the company’s net profit rose by 164 percent year over year, from Rs 179 crores in Q2FY23 to Rs 474 crores in Q2FY24. Their profit climbed from Rs 396 crore in Q1FY24 to the current levels on a sequential basis, a 19.6 percent increase.
This company has a net profit margin of 4.5 percent, which is higher than its historical net profit margin. It also has a low price-to-earnings ratio of 18, a low debt-to-equity ratio of 0.43, and a good current ratio of 1.1.
Apollo Tyres Limited is a midcap company with a market capitalization of Rs 28,979 crores. The company’s share price has risen by 38 percent year to date and by 12 percent during the previous six months.
The promoters own 37.3 percent of the company, with foreign institutional investors owning 22 percent, the general public owning 21.2 percent, and domestic institutional investors owning 19.4 percent.
Apollo, established in 1972, manufactures automatic bias, radial tires, and tubes. The product profile includes prominent tire brands in India’s T&B, light truck, passenger car, and farm vehicle segments, catering to original equipment manufacturers, and the replacement market.
Written by Sriram KV
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