Apollo Tyres: Capex not yet priced in

We had looked at Apollo Tyres nearly a year back (Apollo Tyres: Available at attractive valuations) and our view was framed based the thesis of lower commodity prices namely lower rubber and crude prices. Our thesis has played out and the price is has moved around 50% higher from the time we started looking at Apollo Tyres. However, the 16% drop in the Q4-17, PAT made us re-look at our position. Apollo Tyres has moved from being available at attractive valuations to now being available at reasonable valuations.  Continue reading “Apollo Tyres: Capex not yet priced in”

Apollo Tyres: Available at attractive valuations

Apollo Tyres is the second largest tyre manufacturer and sells its products under the Apollo and Vredestein brands. The truck and bus segment accounts for around half of its sales. The passenger car and light trucks segments account for around a third of its sales. These two segments contribute to close to 85% of its sales. Around three fourths of its revenues are from the replacement market. Outside of the domestic market, Europe contributes around a fourth of its revenues. Opportunities in the European could drive the  unfolding of the Apollo Tyre story in the next 12 to 18 months. Continue reading “Apollo Tyres: Available at attractive valuations”