NSE Symbol: APOLLOTYRE | BSE Code: 500877
Apollo Tyres Share Price Performance
Apollo Tyres Stock Trends - 2018
Apollo Tyres share price has performed quite differently from other companies in 2018.
The stock began trading at around Rs.268.85 in the beginning of the year and rose up to Rs.280 during the
first week of the year. However, a gradual decline followed due to the turbulence in the international
markets. The closing price of the stock on 31 Jan 2018 was Rs.254.85.
In February, the stock grew considerably in the first two weeks of the month but retreated back to around Rs.278 soon. The stocks remained mostly volatile as they continued to undergo fluctuations.
March was an uneventful month for the investors. The stock price didn’t fluctuate much for most of the month. However, in the last week of March, the shares started shooting up dramatically.
The upward trend continued in April when the Apollo Tyres share price reached its 52-week high during mid-April at Rs.307.25.
After this tremendous performance in March, the stocks couldn't hold still and gradually dropped to Rs.294.35 by the end of April.
May and June were two unfortunate months that witnessed the shares drop from Rs.290 in May to Rs.250 in the end of June
However, the prices improved in July and the stock was back to Rs.292.80 on the last day of the month.
However, August was an unfortunate month in which the stock steadily declined and reached Rs.255 on the last day of the month.
The downward trend continued in September, in which the Apollo tyres stock price was down to Rs.212.25 by the time the month ended.
Apollo Tyres Stock Trends - 2016 and 2017
In January 2016, the shares of Apollo Tyres started trading at around Rs.155. The price
dipped to the Rs.140s in early February. However, the stock picked up its pace and started rising till it
crossed Rs.175 by the end of March.
While the Apollo Tyres share price was hovering above Rs.170 in the initial days of April, it soon descended over the next two months and went below Rs.150 by the end of June.
The prices began to rise in July again and closed the month at Rs.163. The company announced an interim dividend of 200% in early August, which caused the stock to rise impressively from around Rs.160 to Rs.224 by early October.
However, this rise was only for a short while and the stock soon shed its previous gains. The prices kept falling in November and December. The year ended with the stock at Rs.184.90. However, it was an increase of over 15% since the beginning of the year.
The initial two months of 2017 remained dull for the investors as the shares lost less than 5% during this time. The Apollo Tyres share price started to rise again in March. By the end of the March, the stock was back to its previous level at Rs.208.
The prices kept increasing through April too and crossed the Rs.245 mark. Although the stocks fell by 10% in May, but they soon regained their bearings at levels over Rs.225. The prices increased further in June and crossed the Rs.260 mark. The company announced a final dividend of 300% in this month.
The stocks made marginal gains in July and witnessed a sharp spike in early August when the prices were driven above Rs.280. A nosedive immediately followed it as the stock declined to Rs.240 over the course of September.
The Apollo Tyres share price remained stable for most of September and October. It started an upward movement in late November and ended the year at Rs.268.25. This was an increase of approximately 40% since the beginning of the year.
Apollo Tyres Company Information and Brief History
Apollo Tyres Limited, incorporated in 1972, is a famous tyre manufacturer in India. It is based in Gurgaon. Apollo Tyres is known for manufacturing tyres for commercial vehicles, passenger vehicles, industrial vehicles, farm vehicles and two-wheelers. The company has an influential presence in the Indian domestic market as well as in international markets. Four of its manufacturing units are situated in India, one in Hungary and one more in the Netherlands. The four key brands of this company are - Apollo, Vredestein, Kaizen and Regal. Each of these brands focuses on a specific region. Bharat Steel Tubes Ltd., Raunaq International Pvt. Ltd., Raunaq & Co. Pvt. Ltd., Jacob Thomas, Raunaq Singh and Mathew T. Marattukalam had promoted this company. The company issued the initial public offer (IPO) of its equity shares in 1975. Since its inception, Apollo Tyres has expanded its global footprint, focussing on European and Indian markets. The first manufacturing unit of this company was established at Perambra in Kerala, which was soon followed by the inauguration of the second plant in Gujarat. Subsequently, additional units in India and in the Netherlands and Hungary were also inaugurated. The market capitalization of Apollo Tyres, as of July 2018, was around Rs.15725 crore. Apollo Tyres share price fluctuates at every moment and thus it is very important for all potential investors to keenly study the performance of the company’s shares before investing in it.
Wealth and Recent Performance
In the financial year 2017-2018, Apollo Tyres had reported that its revenue from operations was at Rs.14928 cr, as compared to Rs.14052 stated in FY 2016-17. This increase in revenue was associated with a significant rise in expenditure of around Rs.14200 cr for the year as against an expenditure of Rs.12859 cr in the previous fiscal year.
Apollo Tyres has registered a robust growth in revenue in all the regions. Its sales in the Asia Pacific, Middle East and Africa region have increased by approximately Rs.500 cr and a similar growth rate was also noticed in its sales in Europe as well. Regarding its sales in the US and other corporate entities, an improvement by more than Rs.1000 cr was reported.
Apollo Tyres made an impressive net profit of Rs.723.8 cr in FY 2017-18. However, the value decreased by Rs.300 cr from that of the previous financial year, owing to a substantial increase in the expenses.
The total assets of Apollo Tyres for the 2017-18 stood at Rs.20153 cr. This marked an increase of approximately Rs.5000 cr from the previous year's value. In the liabilities section, the company’s borrowings showed an increase from Rs.2155 cr to Rs.3700 cr. As a consequence, the company’ debt-equity ratio has also grown from 0.32 to 0.40. Moreover, its earnings per share for 2017-18 reduced to Rs.13.43 from Rs.21.59.
Is Investing in Apollo Tyres Ltd. a Good Idea?
In the financial year 2017-18, the company reported a handsome increase in its revenues
from operations. Apollo Tyres has consistently demonstrated this trend over the last few years.
If we consider the performance of the Apollo Tyres shares, the stock has delivered over 40% returns over the course of 2017. Moreover, the stock has performed particularly well in 2018, although there was considerable turbulence in the international markets. It was, in fact, one of the few stocks that did not drop more than 15% this year.
If we compare the Apollo Tyres stock to its peers, it stands second only to MRF when sales turnover is considered. Apollo Tyres is undoubtedly built on strong foundations. It is a fundamentally stable company with an experienced managerial board. Over time, the company's debt-equity ratio has reduced considerably, but for the last fiscal year when it rose to 0.40 due to an increase in long-term borrowings. Moreover, the company's earnings per share have also reduced.
Apollo Tyres Ltd. has a very strong presence in Indian as well as European markets. It has also performed well in the Asia Pacific region. While there is no fool-proof way to determine if a stock guarantees good returns, Apollo Tyres share is a good stock to invest in as it has the potential to deliver decent returns. However, investors should always conduct their own research on Apollo Tyres share price before investing.