Apollo Tyres Ltd.
ISIN: INE438A01022 • Market Cap: ₹27,122 Cr
The 5-Pillar Quality Audit for Apollo Tyres Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (14.1%), Return on Capital Employed (13.2%), and equity compounding (8.2%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.16 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (4.9%) and 3Y PAT CAGR (-0.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 15.88 vs PEG of 1.02 and Dividend Yield of 1.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 36.9%, backed by 40.7% institutional ownership.
Key Fundamental Strengths
Attractive Valuation Margin (P/E: 15.88)
Trading at a P/E multiple of 15.88, the stock offers a favourable risk-reward entry for quality compounding.
Deep Institutional Sponsorship (40.7%)
Mutual funds, domestic DIIs, and foreign FIIs hold 40.7%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 4.9%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Automobile and Auto Components)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Automobile and Auto Components space.
Quantitative Strategy Eligibility
Checking APOLLOTYRE against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 62/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Automobile and Auto Components Sector Peer Comparison
Compare APOLLOTYRE directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Apollo Tyres Ltd. (APOLLOTYRE)Current | 62/100 | ₹27,122 Cr | 15.88 | 13.2% | 0.16 | — |
| Maruti Suzuki India Ltd. (MARUTI) | 71/100 | ₹4.30 Lakh Cr | 30.02 | 15.6% | 0.00 | View |
| Mahindra & Mahindra Ltd. (M&M) | 72/100 | ₹4.24 Lakh Cr | 22.97 | 16.6% | 1.43 | View |
| Bajaj Auto Ltd. (BAJAJ-AUTO) | 77/100 | ₹3.22 Lakh Cr | 27.34 | 25.4% | 0.57 | View |
| Eicher Motors Ltd. (EICHERMOT) | 74/100 | ₹2.19 Lakh Cr | 37.86 | 23.7% | 0.01 | View |
| TVS Motor Company Ltd. (TVSMOTOR) | 68/100 | ₹2.07 Lakh Cr | 60.46 | 29.9% | 3.31 | View |
Frequently Asked Questions: Apollo Tyres Ltd.
Q:What is the 5-Pillar Fundamental Score for Apollo Tyres Ltd. (APOLLOTYRE)?
Apollo Tyres Ltd. has a RupeeTools Fundamental Score of 62/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (57/100), Financial Health (76/100), Growth (28/100), Valuation (77/100), and Ownership Quality (78/100).
Q:Is APOLLOTYRE fundamentally strong for long-term investment?
APOLLOTYRE currently holds a moderate quality rating of 62/100. While it operates in the Automobile and Auto Components sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does APOLLOTYRE pass the Coffee Can Investing filter?
No. APOLLOTYRE does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does APOLLOTYRE compare against other Automobile and Auto Components peers?
Within India's Automobile and Auto Components sector, APOLLOTYRE trades at a P/E of 15.88 and generates an ROCE of 13.2%. Compare its 5-Pillar score of 62/100 against top sector peers like Maruti Suzuki India Ltd. (71/100), Mahindra & Mahindra Ltd. (72/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.