Shares of Apollo Tyres Ltd saw an uplift in the stock market today after global brokerage JP Morgan (NYSE:JPM) revised the company's share price target upward, citing recovery in tyre volumes and business improvements. The target adjustment from Rs 475 (Rs 1 = $0.012) to Rs 535 reflects confidence in the tyre manufacturer's operational recovery in India and enhancements in its European business and capital allocation strategies.
The announcement led to a more than 2% increase in Apollo Tyres' share value on the National Stock Exchange (NSE), with the price peaking at Rs 465.85, before settling at Rs 454.95 by mid-afternoon. This positive movement is part of a continuing trend for the company, which has experienced substantial growth over recent periods.
Investors have been particularly optimistic about Apollo Tyres' performance, as the company has delivered over a 10% return in the past month and has seen its shares surge by nearly 40% year-to-date (YTD). This impressive rally has significantly outpaced the Nifty 50's increase of over 12%.
Supporting this investor confidence is JP Morgan's overweight rating on Apollo Tyres' stock. The company has reported a robust return on capital employed (ROCE) of 16%, which is already higher than its forecasted target for FY26. Additionally, Apollo Tyres stands on solid financial footing, demonstrated by a net debt/EBITDA ratio of merely one times.
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