Shares of Apollo Tyres hit a fresh 52-week high today after the firm announced its Q2 earnings. Apollo Tyres consolidated net profit climbed 11 per cent in the second quarter ended September, on the back of robust sales in domestic as well as international markets.
Buoyed by Q2 earnings, Apollo Tyres stock gained today after four days of consecutive fall. Apollo Tyres stock touched an intraday high of Rs 303.4, rising 6.25% on BSE. Apollo Tyres stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained 28.54% in a year and risen 35.78% in 2022.
Total 5.07 lakh shares changed hands amounting to a turnover of Rs 15.14 crore on BSE. Market cap of Apollo Tyres rose to Rs 18,922 crore. The stock hit a 52 week high of Rs 303.40 on September 16, 2022 and a 52 week low of Rs 165.40 on March 3, 2022.
Net profit in Q2 rose to Rs 194 crore in the second quarter ended September on the back of robust sales in domestic as well as international markets. The tyre maker reported a net profit of Rs 174 crore in the second quarter of previous fiscal.
Revenue from operations climbed 17 per cent to Rs 5,956 crore compared to Rs 5,077 crore in the year-ago period.
Meanwhile, ICICIdirect in mid-October assigned a buying range of Rs 260-275 with a target price of Rs 335 for the auto stock.
ICICIdirect said Apollo Tyres may benefit from cyclical upswing in the commercial vehicle (CV) space coupled with double digit growth in passenger vehicle (PV) domain driven by greater consumer preference for SUVs. Natural rubber and crude derivatives form a majority (65-70 per cent) of raw material costs for tyre manufacturing. Both these commodities have witnessed a healthy correction with natural rubber down 15 per cent from April levels and are now hovering around the Rs 150-155 per kg from the highs of Rs 170 per kg.
“Even crude is down 20 per cent from June levels and is currently hovering at $90-95/barrel. This bodes well for all tyre manufacturers with Apollo Tyres as a key beneficiary,” the brokerage added.
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