Apollo Tyres stock has been in reverse gear since the results were declared and trades at a reasonable eight-nine times one-year forward estimated earnings. Photo: Ajay Negi/MintThe March-quarter performance of Apollo Tyres Ltd reflects the damage done by galloping rubber prices to its profits. In fact, Apollo Tyres marked up prices by around 5-6% in-line with others in the pack, but it was insufficient to cover cost increases. No wonder, the Apollo Tyres stock has been in reverse gear since the results were declared and trades at a reasonable eight-nine times one-year forward estimated earnings. Nonetheless, Apollo Tyres’ capacity addition in both domestic and European operations mirrors optimism on demand growth.

Source: Mint May 10, 2017 02:15 UTC