ICICI Securities gives buy call on Apollo Tyres at ₹500
Business
ICICI Securities is feeling optimistic about Apollo Tyres, recommending a buy with a target price of ₹500, even though the company just reported weaker profits thanks to slower demand in Europe.
To fight back against rising costs, Apollo hiked prices by 11% to 13% this year and is planning more increases.
Apollo Tires: India demand, Europe shakeup
Demand in India is still solid, but could cool off later this year as prices go up again.
The company's running at about 90% capacity and is shaking up its European operations during H2 to boost profits.
While they're investing more to expand in India (which might squeeze cash flow in the short term), it lines up with their bigger growth plans.