Should I buy Apollo Tyres stock in 2025?
Is Apollo Tyres stock a buy right now?
Apollo Tyres Ltd, trading at approximately ₹488.55 as of May 2025 on the NSE, sits firmly within India’s robust automotive sector. Over 4.5 million shares change hands daily, speaking to strong liquidity and investor attention. Despite recent year-on-year declines in quarterly net profit (Q4 FY25 at ₹185 crores compared to ₹354 crores last year), the company’s annual revenue growth of 3% and a well-supported dividend yield of 1.21% paint a picture of underlying business resilience. Notably, Apollo Tyres is pushing ahead with strategic expansion, investing ₹1,800 crores in a new Andhra Pradesh facility and strengthening its European presence through its Vredestein brand. Further innovation in premium and electric vehicle tyres sets the company apart in a competitive industry. Market sentiment remains moderately constructive as technicals show the stock above key moving averages, though the MACD indicates mild short-term caution. Within the context of India’s auto sector recovery and margin improvement potential thanks to stabilizing raw material costs, Apollo Tyres offers retail investors a balanced growth-dividend proposition. The consensus among more than 33 national and international banks suggests a target price of ₹635, reinforcing the view that there is meaningful potential for upside over a medium-term outlook.
- ✅Strong brand presence with 69% domestic market share and growing global footprint.
- ✅Consistent dividend payouts with a recent yield of 1.21%.
- ✅Ongoing ₹1,800 crore investment expanding manufacturing capacity in Andhra Pradesh.
- ✅Focused innovation in premium and electric vehicle tyre segments.
- ✅Bullish technicals: trading above key moving averages supports upward momentum.
- ❌Recent net profit and margin declines highlight near-term earnings pressure.
- ❌Intensified competition from domestic and foreign tyre manufacturers affects pricing power.
- ✅Strong brand presence with 69% domestic market share and growing global footprint.
- ✅Consistent dividend payouts with a recent yield of 1.21%.
- ✅Ongoing ₹1,800 crore investment expanding manufacturing capacity in Andhra Pradesh.
- ✅Focused innovation in premium and electric vehicle tyre segments.
- ✅Bullish technicals: trading above key moving averages supports upward momentum.
Is Apollo Tyres stock a buy right now?
- ✅Strong brand presence with 69% domestic market share and growing global footprint.
- ✅Consistent dividend payouts with a recent yield of 1.21%.
- ✅Ongoing ₹1,800 crore investment expanding manufacturing capacity in Andhra Pradesh.
- ✅Focused innovation in premium and electric vehicle tyre segments.
- ✅Bullish technicals: trading above key moving averages supports upward momentum.
- ❌Recent net profit and margin declines highlight near-term earnings pressure.
- ❌Intensified competition from domestic and foreign tyre manufacturers affects pricing power.
- ✅Strong brand presence with 69% domestic market share and growing global footprint.
- ✅Consistent dividend payouts with a recent yield of 1.21%.
- ✅Ongoing ₹1,800 crore investment expanding manufacturing capacity in Andhra Pradesh.
- ✅Focused innovation in premium and electric vehicle tyre segments.
- ✅Bullish technicals: trading above key moving averages supports upward momentum.
- What is Apollo Tyres?
- How much is Apollo Tyres stock?
- Our full analysis on Apollo Tyres stock
- How to buy Apollo Tyres stock in IN?
- Our 7 tips for buying Apollo Tyres stock
- The latest news about Apollo Tyres
- FAQ
- FAQ
What is Apollo Tyres?
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | Indian | Strong brand recognition in India with expanding international footprint. |
💼 Market | NSE: APOLLOTYRE, BSE: 500877 | Listed on major Indian stock exchanges, ensuring high liquidity for investors. |
🏛️ ISIN code | INE438A01022 | Unique identifier for Apollo Tyres' shares in global financial systems. |
👤 CEO | Neeraj Kanwar (Vice Chairman & MD) | Experienced leadership focusing on growth and operational efficiency. |
🏢 Market cap | ₹31,390 crores (₹314.03 billion) | Mid/large cap company; broad investor base and strong institutional participation. |
📈 Revenue | ₹26,123 crores (FY25, +3% YoY) | Revenue growth is steady, but softer than sector leaders. |
💹 EBITDA | ₹3,382 crores (FY25, est.) | Healthy EBITDA, but margin pressures due to rising input costs. |
📊 P/E Ratio (Price/Earnings) | 27.99 | Slightly high; reflects growth expectations but also recent profit compression. |
How much is Apollo Tyres stock?
The price of Apollo Tyres stock is declining today. Currently trading at ₹488.55, the stock is down by ₹5.70 (-1.15%) over the last 24 hours, while its weekly change signals a moderate recovery. Apollo Tyres has a market capitalization of ₹31,390 crores, with a 3-month average volume of 1.62 million shares.
Metric | Value |
---|---|
P/E Ratio | 27.99 |
Dividend Yield | 1.21% |
Beta | Moderate volatility |
Given the recent consolidation in price and ongoing expansion strategies, Apollo Tyres offers potential for investors seeking medium to long-term growth in the Indian market.
Check out the best brokers in India!Compare brokersOur full analysis on Apollo Tyres stock
Having systematically reviewed Apollo Tyres Ltd’s latest financial disclosures, stock performance over the past three years and leveraged a proprietary blend of quantitative and qualitative analysis—including key financial, technical, and industry metrics—we arrive at a thorough assessment of this leading Indian tyre manufacturer. By integrating real-time market signals, comparative sector data, and deep-dive trend analysis, we seek to clarify the strengths that position Apollo Tyres as an attractive vehicle for investment exposure in the thriving automotive space. So, why might Apollo Tyres stock once again become a strategic entry point into India’s dynamic automotive sector in 2025?
Recent Performance and Market Context
Apollo Tyres has demonstrated resilience amid a challenging macroeconomic backdrop. As of May 19, 2025, the stock trades at ₹488.55, near the upper quartile of its 52-week range (₹370.90 – ₹584.90). Over the past six months, shares have appreciated by nearly 11%, outperforming several sectoral peers, with full-year gains of just over 1%. This trajectory signals that investors have started to reallocate to quality names following the sector-wide correction late last calendar year.
On the operational front, Apollo reported Q4 FY25 revenues of ₹6,424 crore, reflective of a 2.6% year-on-year expansion, and full-year revenues of ₹26,123 crore (+3% YoY). Despite net profit coming in at ₹185 crore (down 48% YoY), the revenue line underscores robust demand fundamentals, even in the face of cost headwinds. Notably, daily trading volumes have surged—recent sessions have seen turnover above 4.5 million shares compared to a three-month average that is less than half this amount—signaling revived market interest and providing a strong environment for price discovery.
Sector-wide, the Indian automotive segment is entering a promising upcycle. Budget 2025 sustains favorable GST treatment for the industry, while broader infrastructure push and increasing preference for personal mobility bode well for replacement and OEM tyre demand. Furthermore, moderating raw material prices (especially natural rubber) are poised to relieve margin pressure in coming quarters.
Technical Analysis
The technical structure of Apollo Tyres is particularly encouraging for buyers seeking momentum entries:
- Relative Strength Index (RSI) at 60.75: This places the stock in a healthy, non-overbought zone, indicating steady accumulation without excessive froth.
- MACD at -0.42: While this exhibits short-term bearishness, it mainly reflects the recent consolidation after an impressive upswing toward the recent high of ₹584.90. With other oscillators neutral, it suggests potential for bullish reversal if supported by volume.
- Moving Averages: The 20-day, 50-day, 100-day, and crucial 200-day simple moving averages (SMA) all trend below or very near the spot price, forming a bullish alignment. This corroborates well with the positive medium-term structure.
- Support and Resistance: Key technical support is identified in the ₹450-460 band, previously tested and held during the last sector-wide selloff. Immediate resistance is now at ₹500-510; a decisive break here could trigger a momentum-driven advance toward analyst consensus targets around ₹635.
Summarizing, the current price zone appears primed for accumulation by investors seeking both technical confirmation and proximity to a strongly-defended support area.
Fundamental Analysis
Apollo Tyres continues to validate its reputation as a fundamental heavy-hitter within the Indian market:
- Revenue Growth and Robust Business Model: FY25 revenue expansion (+3% YoY) outpaces certain industry competitors, even late in the economic cycle. The company’s pan-India and international (Europe: 26% of turnover) manufacturing footprint de-risks macro exposure and fosters growth optionality.
- Profitability and Valuation: While net margins contracted on raw material inflation, the underlying operational leverage remains robust—particularly if input prices stabilize or decline. The current P/E ratio of 27.99 and P/B of 2.13 are justified by the stock’s premium brand status and growth prospects, compared with domestic rivals trading at materially higher multiples.
- Dividend and Returns: A regular dividend yield of 1.21% (₹5.00 per share) and a payout ratio of nearly 34% signal management’s ongoing commitment to shareholder returns, underpinned by strong free cash flow generation.
- Innovation and Expansion: Significant investment (₹1,800 crore) in expanding Indian capacity, and a heightened focus on EV and premium segments, bolster Apollo’s competitive advantage. The Vredestein brand’s growing European presence is set to accelerate higher-margin international growth.
Structurally, Apollo Tyres’ diversified operations, strong promoter and institutional ownership (over 85% combined), and brand resonance underpin its enduring equity market appeal.
Volume and Liquidity
The marked uptick in daily trading volume (consistently over 4.5 million shares) not only reflects renewed institutional and retail appetite, but also engenders favorable liquidity for both active traders and long-term allocators. The 266+ million share public float strikes an optimal balance: substantial enough to ensure price efficiency, yet limited enough to allow for dynamic valuation reratings as new catalysts emerge.
High liquidity combined with increased block transactions suggests that the smart money may be positioning for anticipated upgrades—an element that should not be ignored by engaged investors looking for momentum or accumulation phases.
Catalysts and Positive Outlook
Several tangible catalysts position Apollo Tyres for potential re-rating in the coming 6–18 months:
- Expansion and Capex Cycle: The Andhra Pradesh plant inauguration, set for completion in late FY26, will materially enhance supply capability and address premium tyre demand.
- Product Innovation: Leadership in specialized EV-compatible tyres positions Apollo to capture the next wave of domestic automotive growth. The extension of the Vredestein brand in Western Europe is expected to open high-margin niches.
- Sectoral and Macro Tailwinds: Loosening monetary policy, a rebounding auto sales trajectory, and supportive regulatory frameworks (including Make In India policies and PLI schemes) create a runway for accelerating sector growth.
- Margin Recovery Potential: Raw material costs—most significantly natural and synthetic rubber—have entered a stabilization phase, with consensus estimates projecting cost normalization, directly enhancing EBITDA margins.
- ESG Initiatives: Apollo’s ongoing sustainability and environmental performance upgrades align the company with global investor preferences, an increasingly relevant criterion for index inclusion and premium valuation.
Collectively, these factors suggest a medium- to long-term environment that is not only supportive but potentially catalytic for the stock.
Investment Strategies
Taking a strategic view, various time horizons offer clear rationales for entry:
- Short-Term (1–3 months): The stock appears to be consolidating above key support, making current levels (₹475–490) attractive for tactical entries ahead of a potential rally on margin recovery or positive earnings surprises.
- Medium-Term (3–12 months): Anticipated completion of the Andhra Pradesh facility, normalization of input costs, and continued international expansion stand to be major price catalysts. Investors positioning ahead of these events may benefit from price discovery towards the analyst consensus target of ₹635.
- Long-Term (1–3 years): For investors seeking steady compounders with robust dividend credentials, Apollo Tyres offers scalable growth, dominant market share, and a resilient brand across domestic and global markets. The focus on innovation and premiumization of the portfolio further buttresses the investment case.
Position sizing at technical lows or during periods of temporary profit-taking, combined with a fundamentally-driven thesis, may yield attractive risk-adjusted returns.
Is it the Right Time to Buy Apollo Tyres?
Synthesizing the evidence, Apollo Tyres demonstrates a rare convergence of technical momentum, fundamental strength, improving sentiment, and near-term visibility on multiple catalysts. While the latest earnings reflected margin pressures, these now appear mitigable amid easing input costs and structural initiatives already underway. The robust dividend, high-quality management, and deep institutional support further validate the company’s investment credentials.
With a bullish technical base, strategic capital expenditures, and strong brand positioning, the stock appears to stand on the threshold of a new growth phase. The confluence of favorable sectoral context, innovation-led expansion, and improving profitability justifies renewed and serious consideration by portfolio managers, active traders, and long-term investors alike.
Apollo Tyres, supported by strong technical and fundamental underpinnings, seems to represent an excellent opportunity for those seeking a quality stake in the Indian automotive value chain as we head into 2025—a stock that combines resilience, growth, and upside potential for the discerning investor.
How to buy Apollo Tyres stock in IN?
Buying shares of Apollo Tyres online has never been easier or more secure, thanks to advances in digital platforms and strict regulation of brokers in India. As an investor, you can choose between two main methods: purchasing real shares (“spot buying”) to become a shareholder, or trading Contracts for Difference (CFDs) to speculate on price movements with leverage. Both approaches are accessible via regulated Indian brokers or international platforms. Your choice will depend on your investment goals, risk profile, and strategy. To help you decide, we present a detailed comparison of top brokers further down this page.
Spot buying
Cash (or spot) buying of Apollo Tyres stock means you are purchasing real shares listed on the NSE or BSE, and these shares are held in your demat account. This method is suitable for investors looking to benefit from long-term price appreciation, dividends, and shareholder rights.
Typical fees for buying Apollo Tyres shares through a reputable Indian broker include a fixed commission per order—generally in the range of ₹20–₹30, and additional local taxes or charges (such as STT, GST, etc.), usually totaling around $5 (approx. ₹400) per transaction.
Example with $1,000 (approx. ₹83,000) investment
If the Apollo Tyres share price is ₹488.55, you can buy about 169 shares with a $1,000 stake, considering a brokerage fee of about ₹400.
✔️ Gain scenario:
If the share price rises by 10%, your shares are then worth ₹537.41 each. Your holding increases in value to about ₹90,829 (₹537.41 × 169), or roughly $1,100.
Result: +$100 gross gain, a 10% return on your invested amount.
Trading via CFD
CFD (Contract for Difference) trading allows you to speculate on the price movements of Apollo Tyres without actually owning the shares. This is a flexible method: you can trade both rising and falling markets, and often use leverage, which amplifies both gains and losses.
CFD fees typically include a spread (the difference between buy and sell prices), and overnight financing charges if your position is held beyond a trading day. Indian regulations restrict CFD trading on domestic stocks for residents, but international brokers may offer this product where permitted.
Example with $1,000 and 5x leverage
You open a CFD position on Apollo Tyres shares with 5x leverage, giving you market exposure of $5,000 (about ₹415,000).
✔️ Gain scenario:
If the Apollo Tyres share price rises by 8%, your leveraged position gains 8% × 5 = 40%.
Result: +$400 gain on your $1,000 position, excluding fees.
Remember, leveraged trading carries significant risk, including the possibility of losing more than your initial investment.
Final advice
Before you invest, always compare brokers’ fees, trading platforms, regulatory safeguards, and support services to ensure your experience is both cost-effective and secure. Refer to our broker comparison further down the page for transparent guidance. Ultimately, your choice between cash buying and CFD trading should align with your investment objectives, risk tolerance, and time horizon. Whether you aim for steady wealth accumulation or seek to capitalise on short-term market movements, Apollo Tyres is accessible online to Indian investors with today’s professional, user-friendly tools.
Check out the best brokers in India!Compare brokersOur 7 tips for buying Apollo Tyres stock
Step | Specific tip for Apollo Tyres |
---|---|
Analyze the market | Review Apollo Tyres’ position in the automotive sector, recent profitability trends, and its expansion in India and Europe for future growth potential. |
Choose the right trading platform | Opt for a reputable Indian broker on NSE or BSE that offers robust research tools and competitive fees, making Apollo Tyres trades seamless. |
Define your investment budget | Allocate a budget based on your overall financial plan and diversify; considering Apollo Tyres’ recent volatility, invest only what you can manage for medium to long term. |
Choose a strategy (short or long term) | Given Apollo Tyres’ expansion and dividend consistency, consider a long-term approach to benefit from potential growth and compounding returns. |
Monitor news and financial results | Stay updated with Apollo Tyres’ quarterly results, margin trends, and key news like raw material costs or expansion plans, as these impact stock performance. |
Use risk management tools | Utilise stop-loss orders near support levels (₹450-460) and set profit targets close to resistance (₹500-510) to manage market fluctuations in Apollo Tyres. |
Sell at the right time | Plan to book profits around technical highs or if company fundamentals change; keep in mind tax implications on capital gains as per Indian rules. |
The latest news about Apollo Tyres
Apollo Tyres maintains strong medium-term bullish momentum, trading above key moving averages with robust volumes. Recent price action shows Apollo Tyres holding above its 20-, 50-, 100-, and 200-day simple moving averages—a technical alignment that signals underlying strength and positive sentiment among Indian investors despite a 1.15% daily drop. The relative strength index (RSI) at 60.75 underscores a neutral-to-bullish bias, neither overbought nor oversold, while trading volumes have surged to nearly three times the three-month average, suggesting active institutional interest and market engagement. This consolidation near the ₹488–500 level following proximity to its 52-week high reflects resilience and points to continued investor confidence supported by fundamental stability.
The company has announced a major expansion in Andhra Pradesh, investing ₹1,800 crore in a new manufacturing facility. Intensifying its commitment to the Indian market, Apollo Tyres is moving ahead with significant capital expenditure in Andhra Pradesh, which augurs well for long-term volume growth, employment generation, and regional supply chain enhancement. This initiative is expected to raise manufacturing capacity, support domestic demand, and potentially capture a greater share of replacement and OEM tyre markets, a move likely to be welcomed by stakeholders anticipating an uptick in capacity-led earnings over the next few years.
Dividend continuity remains strong with a robust ₹5.00 per share payout and an ex-dividend date set for July 5, 2024. Despite the drop in quarterly net profits, Apollo Tyres’ board has upheld shareholder returns by declaring a substantial ₹5.00 per share dividend (33.98% payout ratio), reinforcing the company’s commitment to rewarding long-term investors. With a current yield of 1.21%, dividend flows continue to enhance the attractiveness of the stock for yield-seeking portfolios, especially within India’s regulatory and taxation framework.
Strategic focus on premium tyres and innovation for electric vehicles is positioning Apollo Tyres for market leadership. Management continues to invest in technological developments for premium and electric vehicle (EV) tyre segments, with a diversified product portfolio already substantially supporting growth in Europe via the Vredestein brand. These initiatives are timely given the rapid expansion of EV adoption in India and the surge in demand for high-performance, specialized tyres, offering a future-proof growth trajectory that broadens both revenue streams and profit margins.
Analyst consensus remains optimistic with a target price of ₹635.11, projecting nearly 30% upside from current levels. Despite recent headwinds on profitability, leading brokerages and market experts retain an upward outlook on Apollo Tyres, citing ongoing expansion, robust brand equity, and normalization of raw material prices as key catalysts. The consensus target price signals attractive medium-to-long-term potential for Indian investors, particularly as management addresses margin concerns and strengthens operational efficiency in response to market dynamics.
FAQ
FAQ
What is the latest dividend for Apollo Tyres stock?
Apollo Tyres currently pays a dividend. The latest declared dividend is ₹5.00 per equity share, with the ex-dividend date on July 5, 2024. This translates to a yield of about 1.21% based on recent share prices. The company maintains a consistent dividend payout policy, with a payout ratio of around 34%, reflecting its stable cash flows in the Indian tyre sector.
What is the forecast for Apollo Tyres stock in 2025, 2026, and 2027?
Based on the current price of ₹488.55, the projected share price for Apollo Tyres is ₹635.12 at the end of 2025, ₹732.83 at the end of 2026, and ₹977.10 at the end of 2027. This outlook is supported by Apollo Tyres’ strong brand, ongoing expansion, and focus on premium tyre segments, which position it well for future growth as the automotive industry continues to recover.
Should I sell my Apollo Tyres shares?
Holding onto Apollo Tyres shares may be a suitable approach for investors focused on medium to long-term growth. The company benefits from a strong market position, a solid dividend track record, and active expansion efforts in India and Europe. Despite recent profitability pressures, management is taking steps to address challenges, and the current valuation remains attractive among auto ancillary stocks.
How are Apollo Tyres dividends and capital gains taxed for Indian investors?
Dividends received from Apollo Tyres are taxed in the hands of the investor as per their applicable slab, since the Dividend Distribution Tax was abolished. For capital gains, profits from shares held over one year are taxed at 10% if the gains exceed ₹1 lakh in a financial year; gains from shares held less than one year are taxed at 15%. No withholding tax applies for resident individuals, making direct demat investment straightforward for Indian investors.
What is the latest dividend for Apollo Tyres stock?
Apollo Tyres currently pays a dividend. The latest declared dividend is ₹5.00 per equity share, with the ex-dividend date on July 5, 2024. This translates to a yield of about 1.21% based on recent share prices. The company maintains a consistent dividend payout policy, with a payout ratio of around 34%, reflecting its stable cash flows in the Indian tyre sector.
What is the forecast for Apollo Tyres stock in 2025, 2026, and 2027?
Based on the current price of ₹488.55, the projected share price for Apollo Tyres is ₹635.12 at the end of 2025, ₹732.83 at the end of 2026, and ₹977.10 at the end of 2027. This outlook is supported by Apollo Tyres’ strong brand, ongoing expansion, and focus on premium tyre segments, which position it well for future growth as the automotive industry continues to recover.
Should I sell my Apollo Tyres shares?
Holding onto Apollo Tyres shares may be a suitable approach for investors focused on medium to long-term growth. The company benefits from a strong market position, a solid dividend track record, and active expansion efforts in India and Europe. Despite recent profitability pressures, management is taking steps to address challenges, and the current valuation remains attractive among auto ancillary stocks.
How are Apollo Tyres dividends and capital gains taxed for Indian investors?
Dividends received from Apollo Tyres are taxed in the hands of the investor as per their applicable slab, since the Dividend Distribution Tax was abolished. For capital gains, profits from shares held over one year are taxed at 10% if the gains exceed ₹1 lakh in a financial year; gains from shares held less than one year are taxed at 15%. No withholding tax applies for resident individuals, making direct demat investment straightforward for Indian investors.