181% return in 2 years: This tyre stock gets BUY call from brokerage - Check target price for 12 months

Tyre Stock To Buy, Apollo Tyres Share Price Target NSE, BSE: Sensex breached the historic 80,000 mark for the first time ever and the Nifty hit its fresh lifetime high on Wednesday amid heavy buying in bank stocks and firm global market trends. While the 30-share BSE Sensex jumped 597.77 points to hit a new lifetime high of 80,039.22, Nifty climbed 168.3 points to hit a fresh record peak of 24,292.15. In this bullish market, brokerage house ICICI Direct has picked Apollo Tyres for long-term investment goals.  

According to the brokerage firm, the stock of Apollo Tyres, the country's leading tyre manufacturing company, can be purchased with a 12-month perspective. The company has a strong balance sheet, good margins and has been continuously reducing its debt. However, the stock has been losing for the last two days and has fallen around 2.55 per cent in this period.

Apollo Tyres Share Price Target By Brokerage

Brokerage house ICICI Direct has given a buy recommendation on Apollo Tyres. Along with this, the target price per share has been set at Rs 635. On July 2, 2024, the stock closed at 535.55. From here, the stock can see a jump of over 18 per cent.

Apollo Tyres Share Price History

So far this year, the stock of Apollo Tyres has surged by about 18 per cent. Similarly, the return of the last 1 year is around 34 per cent. The stock has surged by 181.61 per cent in two years and 34 per cent in one year. 

Apollo Tyres has reduced its gross debt from Rs 6,800 crore in FY20 to Rs 3,900 crore in FY24. In four years, the company has reduced its debt by Rs 2,500 crore. During this period, the company's EBITDA increased from Rs 1,900 crore (FY20) to Rs 4,450 crore (FY24). The company's balance sheet is strong. Margins remain at 16-17 per cent. The company will become net debt-free by FY26.