Update shared on 12 Nov 2025
The analyst price target for Apollo Tyres has been reduced slightly. Analysts cite ongoing credit market concerns and the normalization of investment income as key factors behind the new outlook.
Analyst Commentary
Analyst opinions on Apollo Tyres are divided, reflecting both optimism around certain operational strengths and caution in response to market headwinds.
Bullish Takeaways- Capital markets are showing signs of recovery, which could support improved valuations and execution for Apollo Tyres over the medium term.
- Tailwinds from continued fee and trading activity as well as favorable equity market trends provide a positive backdrop for revenue growth.
- Strong distribution performance serves as a signal of continued demand and effective market positioning, supporting future earnings emergence.
- Favorable claims experience and an encouraging outlook for actuarial review season are considered indicators of earnings stability and upside potential.
- Credit market concerns remain a significant driver of near-term caution, with implications for market valuations and investor sentiment.
- Normalizing variable investment income may limit upside surprises, reducing a recent source of outperformance.
- Secular headwinds in capital flow and changes in fee generation present risks to growth expectations going forward.
- Despite positive distribution trends, persistent headwinds could pressure future revenue streams if macroeconomic uncertainties persist.
What's in the News
- Apollo has withdrawn its $64 per share bid to take Papa John's private in response to concerns over consumer spending and challenges in the quick-service restaurant industry (Reuters).
- Apollo Global is seeking to sell Heritage Grocers Group, valued at approximately $1.5 billion, citing reduced consumer demand in Latino communities (Reuters).
- The U.S. Army has invited Apollo and several major private equity groups to pitch strategy projects to help fund a $150 billion infrastructure overhaul (Financial Times).
- Apollo is in advanced talks to purchase a majority stake in Spanish football club Atletico Madrid from current shareholders (Financial Times).
- Apollo is exploring the sale of AOL after receiving interest, with a potential deal valuing AOL around $1.5 billion (Wall Street Journal).
Valuation Changes
- Fair Value Estimate: Remains unchanged at ₹521.30, signaling stability in long-term value assessment.
- Discount Rate: Has risen slightly from 14.85% to 15.43%, reflecting an increase in perceived risk or cost of capital.
- Revenue Growth Projection: Holds steady at 6.80%, indicating that expectations for sales expansion are unchanged.
- Net Profit Margin: Remains consistent at 7.33%, suggesting a stable profitability outlook.
- Future P/E Ratio: Has inched up from 22.47x to 22.81x, pointing to a marginally more optimistic earnings multiple.
Disclaimer
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