By {Pradeep Saran} | Nov 8, 2024
Apollo Tyres, established in 1972, is a leading tyre manufacturer with a significant presence both in India and overseas. Headquartered in Haryana, India, the company has manufacturing units in multiple locations across the country, including Cochin, Vadodara, Chennai, and Andhra Pradesh. Apollo Tyres also supplies to regions such as Asia, Europe, the Middle East, and Africa. Known for producing high-quality tyres for various vehicles, including trucks, cars, and agricultural equipment, Apollo Tyres has garnered a strong customer base worldwide.
https://www.apollotyres.com/
Discover Apollo Tyres’ share price targets for 2025, 2030, 2035, 2040, and 2050. Gain insights into company performance, future plans, risks, competitors, and the growth potential of Apollo Tyres in this comprehensive analysis.
Apollo Tyres Share Price Targets from 2025 to 2050
| Year | Minimum Price (₹) | Maximum Price (₹) |
|---|
| 2025 | ₹502 | ₹883 |
| 2030 | ₹1602 | ₹1905 |
| 2035 | ₹2850 | ₹3400 |
| 2040 | ₹3820 | ₹4150 |
| 2050 | ₹8250 | ₹9050 |
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Apollo Tyres Share Price Target 2025
With expanding operations in Europe and increasing its footprint in India, Apollo Tyres continues to improve its market reach. The company plans to establish more distribution networks across Germany and other European countries. This expansion could significantly boost Apollo’s revenue in the coming years.
- Price Prediction for 2025: Between ₹502 and ₹883.
Summary for 2025
Apollo Tyres is focused on expanding its dealer network and establishing stronger brand recognition in international markets. This strategy, coupled with continuous innovation, makes Apollo Tyres well-positioned for growth in 2025.
Apollo Tyres Share Price Target 2030
As the company strengthens its technological edge and invests in R&D, Apollo Tyres is likely to introduce advanced products, such as self-repairing tyres and pressure-sensitive tyres. These innovations, along with a strong distribution network in rural and urban areas, are expected to support its growth in the coming years.
- Price Prediction for 2030: Between ₹1602 and ₹1905.
Summary for 2030
Apollo Tyres’ consistent R&D investments and growth-focused strategies should help the company achieve substantial growth by 2030, solidifying its position as a leader in the tyre industry.
Apollo Tyres Share Price Target 2035
Apollo Tyres is projected to increase its presence in underrepresented regions and invest further in sustainable production processes. The company aims to cater to a growing demand for eco-friendly products, which is likely to enhance its revenue and profitability.
- Price Prediction for 2035: Between ₹2850 and ₹3400.
Summary for 2035
Apollo Tyres’ emphasis on green technologies and expanding its portfolio to meet global demands could propel its valuation significantly by 2035.
Apollo Tyres Share Price Target 2040
With established partnerships with global brands like Audi, BMW, Hyundai, Tata, and Mahindra, Apollo Tyres benefits from brand loyalty and a broad client base. The company’s consistent efforts in innovation and quality improvement make it a preferred choice among automobile manufacturers.
- Price Prediction for 2040: Between ₹3820 and ₹4150.
Summary for 2040
Apollo Tyres’ global partnerships and continuous innovation contribute to its status as a reliable industry leader, which is expected to reflect positively in its stock value by 2040.
Apollo Tyres Share Price Target 2050
By 2050, Apollo Tyres aims to expand its manufacturing capabilities significantly and further strengthen its brand across various tyre segments. The company’s focus on diversification and innovation in tyre technology will likely fuel its growth in the long run.
- Price Prediction for 2050: Between ₹8250 and ₹9050.
Summary for 2050
Apollo Tyres’ substantial market share, innovative product offerings, and expanding client base position it as a long-term investment option, with robust growth anticipated by 2050.
Price Target Source: SharePriceTarget.com
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Company Overview: Products and Services
Apollo Tyres offers an extensive range of products, including tyres for trucks, small trucks, passenger cars, and agricultural vehicles. The company also has a strong export presence, with additional production units in Europe and Southeast Asia, catering to the needs of various vehicle manufacturers worldwide.
Future Plans of Apollo Tyres
Apollo Tyres is committed to global expansion and innovation in tyre technology. The company is also focused on achieving sustainability in production, aiming to introduce tyres with longer durability and better fuel efficiency, catering to environmentally conscious consumers.
Profit and Loss Overview
Apollo Tyres Profit & Loss Summary (FY 2020 – FY 2024)
Income and Revenue Growth
- Revenue from Operations: Apollo Tyres saw consistent growth in revenue, rising from ₹10,832.70 Cr in FY 2020 to ₹17,235.18 Cr in FY 2024.
- Other Income: Other income fluctuated over the years, reaching ₹135.80 Cr in FY 2024, up from ₹34.90 Cr in FY 2020.
Total Revenue
- Total Revenue: Including other income, total revenue increased from ₹11,096.93 Cr in FY 2020 to ₹17,675.13 Cr in FY 2024.
Expense Breakdown
- Cost of Materials Consumed: Material costs were substantial, peaking at ₹10,693.77 Cr in FY 2023 before decreasing slightly to ₹9,520.83 Cr in FY 2024.
- Employee Benefits: Employee expenses steadily increased from ₹826.12 Cr in FY 2020 to ₹1,108.72 Cr in FY 2024.
- Finance Costs: Finance costs remained high, reaching ₹403.49 Cr in FY 2024, slightly lower than the ₹467.23 Cr in FY 2023.
- Depreciation and Amortization: Depreciation costs also increased over time, reaching ₹916.50 Cr in FY 2024.
- Other Expenses: Other operational expenses rose from ₹2,005.52 Cr in FY 2020 to ₹2,842.87 Cr in FY 2024.
Profitability
- Operating Profit (EBITDA): Despite rising expenses, Apollo Tyres achieved strong operating profit growth, with a profit before tax (PBT) increasing from ₹581.39 Cr in FY 2020 to ₹1,836.62 Cr in FY 2024.
- Net Profit (PAT): After tax expenses, net profit jumped significantly from ₹508.62 Cr in FY 2020 to ₹1,154.03 Cr in FY 2024, reflecting robust profitability improvements.
- Earnings Per Share (EPS): Basic and diluted EPS grew from ₹8.89 in FY 2020 to ₹18.17 in FY 2024, indicating higher returns for shareholders.
Dividend and Shareholder Returns
- Dividend Payout: Equity dividends varied, with a high payout of ₹357.53 Cr in FY 2020 and ₹285.80 Cr in FY 2024.
- Dividend Rate (%): The equity dividend rate was 600% in FY 2024, up from 300% in FY 2020, showcasing an increase in shareholder returns.
“Apollo Tyres Profit & Loss data Source Moneycontrol.com“
Key Highlights and Analysis
- Revenue and Profit Growth: Apollo Tyres demonstrated significant growth in both revenue and profitability, with a notable improvement in profit margins due to effective cost management.
- Rising Operating Expenses: While revenue growth remained strong, operating expenses and material costs also rose, which impacted net profitability.
- Shareholder Value: Higher EPS and dividend payouts in FY 2024 reflect Apollo Tyres’ commitment to enhancing shareholder value.
- Future Prospects: Apollo Tyres’ focus on operational efficiency and profitability could sustain future growth, positioning the company for ongoing success in the industry.
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Pros and Cons of Apollo Tyres Stock
Pros
- Strong Market Presence: A well-established brand in India and internationally.
- Innovation in Technology: Investment in R&D enables the company to stay competitive.
- Global Partnerships: Collaborations with major automobile brands increase credibility and demand.
- Expansion Plans: Focus on expanding operations and increasing dealer networks.
Cons
- High Competition: Faces competition from domestic and international tyre brands.
- Market Sensitivity: Sensitive to fluctuations in raw material costs, which can impact profitability.
- Dependence on Auto Industry: Heavily reliant on the auto industry’s performance, which could be impacted by economic downturns.
Risk Factors to Consider
- Economic Downturns: Economic recessions or downturns in the automobile sector may impact tyre demand and Apollo Tyres’ revenue.
- Raw Material Price Fluctuations: Tyre manufacturing is sensitive to raw material costs, which can be unpredictable.
- High Competition: The tyre industry is competitive, and Apollo Tyres faces challenges from both domestic and international players.
Competitors of Apollo Tyres
Apollo Tyres faces competition from other major brands such as MRF, JK Tyre, CEAT, and Bridgestone. Each competitor brings unique strengths to the table, making the market highly competitive.
Frequently Asked Questions (FAQs)
1. Does Apollo Tyres pay dividends?
Yes, Apollo Tyres has a track record of paying dividends to its shareholders.
2. Is Apollo Tyres stock a good long-term investment?
Apollo Tyres has shown steady growth over the years, making it a viable long-term investment.
3. What are Apollo Tyres’ expansion plans?
Apollo Tyres is focused on expanding its market reach, particularly in Europe and underserved regions.
4. What are the risks of investing in Apollo Tyres?
The main risks include economic downturns, price fluctuations in raw materials, and competition in the tyre industry.
5. What partnerships does Apollo Tyres have?
Apollo Tyres partners with major automobile brands like Audi, BMW, Hyundai, Tata, and Mahindra.
6. How does Apollo Tyres ensure product quality?
Apollo Tyres invests in R&D and employs strict quality control measures across its production units.
7. What future innovations can we expect from Apollo Tyres?
Apollo Tyres is researching technologies like self-healing tyres and pressure-adjusting tyres, which could become mainstream in the future.
Conclusion
Apollo Tyres has established itself as a leading brand in the tyre industry, both in India and globally. With a strategic focus on innovation, expansion, and sustainability, Apollo Tyres appears well-positioned for long-term growth. Its continuous investment in R&D, coupled with strong industry partnerships, enhances its appeal as a viable investment choice for the future.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.
Alert: This is just an estimate that the share target of Apollo Tyres can be this much. If you want to invest then talk to an advisor and then invest. Homedecore24.com will not take any responsibility if your money is lost. Please invest money at your own risk.
