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Entry Price

240.00

Target

300.00

Recommend Date

05-02-2021

Return

25.0 %
BUY

Date : 05-02-2021

Apollo Tyres (ATL) reported a robust operational performance in Q3FY21. Consolidated operating income was at | 5,154 crore, up 17.1% YoY (APMEA i.e. largely India revenues up 22.7% YoY to | 3,449 crore, Europe revenues up 7.5% YoY to | 1,747 crore). EBITDA margins came in at a decade high of 19.2% (up 707 bps YoY, up 297 bps QoQ) tracking 120 bps sequential gross margin expansion, India replacement price hikes across segments (2-3%) and Europe product mix improvement. Consequent consolidated PAT was higher by 155% YoY at | 444 crore.