From Investing.com: 2024-05-19 08:24:04

JP Morgan upgraded Apollo Tyres (APTY) to Overweight, citing debt reduction efforts and disciplined growth. Despite a margin miss in 4QFY24, APTY plans price hikes to offset environmental and commodity costs. Strong FCF conversion over 100% highlights financial strength. Price target raised to INR 555 with 7% FCF yield.

Analysts project APTY stock to have minor upside potential at INR 469.95 fair value. JP Morgan sets target at INR 555. Management focuses on pricing adjustments to tackle environmental and commodity challenges. Capex lower than guidance for FY24, aiming for near-debt-free status by FY26. Strong start in India and EU markets.

4QFY24 results show INR 11bn adjusted EBITDA, below estimates. Reported PAT at INR 3.5bn, 30% below estimates due to operating miss and EPR provisions. Net debt down to INR 25bn, ROCE at 16% in FY24. Continued pricing adjustments to counter challenges. Strong growth in India and EU markets, emphasizing product mix improvement.



Read more at Investing.com: JP Morgan Upgrades Apollo Tyres Amidst Growth Outlook, Fair Value Insight By Investing.com