Premium Pick Unlocked : 4X Multibagger Stocks as Value Pick · Apollo Tyres · Jun16

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Apollo Tyres Ltd.

Value Pick : Summary

About Business :

Aapne Apollo Tyres ka naam to suna hi hoga. Apollo Tyres is the leading manufacturer of commercial vehicle (CV) radial tyres for Truck and Bus (T&B) segment in India & strong presence in the light commercial vehicles (LCV), tractors, and passenger car radial (PCR) segments as well.

Apollo also has an established presence in the European PCR market through its acquired Vredestein brand (Premium Segment) & has recently acquired a German distributor, Reifencom to augment its distribution network in Europe.

Apollo Tyres is truly a very stable business with strong distribution networks in India, Europe and is expanding. It has expansion plans which are being executed as we speak.

SWOT Analysis :

Strengths

  • Apollo tyres is present in 2 continents & is really diversified.
  • Strong brands : Apollo & Vredestein.
  • Deeply developed distribution network, organically & by acquisitions in Indian & Europe which is a kind of moat for any brand producing business.
  • Vredestein is a premium brand of Europe in Tyre segment.
  • India main Trucks & Buses ka leading OEM (Original Equipment Manufacturer) as well as replacement market leader.

weaknesses

  • No presence in 2 wheeler segment which is a very large chunk of markets in India.
  • Fluctuating raw material prices not properly passed to consumers showing weak pricing policy.
  • Yet to enter European OEM (Original Equipment Manufacturer).

opportunities

  • Greenfield plant in Hungary which is under construction will add up manufacturing capacity for Apollo tyres.
  • Expanding to Middle East, South America, South East Asia.
  • Apollo tyres can convert access bias capacity into industrial tyre capacity to tap into new market segment.
  • Getting deals struck to be an OEM for reputed automakers in Europe.

threats

  • Increased competition from imported Chinese truck radial tyres which has clearly cut into Apollo Tyres's truck segment revenue in India.
  • Natural rubber price fluctuations putting lot of pressure on profit margins sometimes.
  • Cross-currency rate fluctuations ie, INR-EURO leading to lesser or more realized numbers in P&L (Profit & Loss).

Business Verdict :

Apollo Tyres Limited has a quite stable business model with proven records & strong distribution network . It definitely has multibagger potential as a value pick. With solid expansions in Europe continent & branding partnership with Manchester United Football Club (Football lover jaanta hai what is value of ManU).

Tyres are the most essential part of all the vehicles be it a 2-wheeler or 4-wheeler or heavy vehicles Bina tyres ke to koi gaadi chal hi nai sakti . Thanks to Stock brokers who has recommending for sattebaaji in this so that you can get deep value pick business. I see stable turnovers & healthy profit margins maintained. Apollo Tyres is a Multibagger stock in India available deeply undervalued. ValueGuyz Apollo Tyres is a definite value pick to consider.


Official Website

Quality Analysis
Value Matrix

What are Value Picks ?

Value picks are stocks of companies that are believed to be undervalued at NSE or BSE. It is an outcome of huge sattebaaji directed by Stock brokers in that stock making Markets overreact to good and bad news, resulting in stock price movements that do not correspond with the company's long-term business or fundamentals.

You can learn Value Pick Multibagger Stock course & start your own research in depth. After completing the Value Pick Multibagger Stock course You have to apply methods & circle of competence on your researched Value Picks.

Is Value Pick Tax Free ?

YES, Profit arising from holding Equity shares for 1 Year or more is covered under Long Term Capital Gain ( LTCG) as per Income Tax Act 1961 ( Section 54 )

regards,

jasmeet singh

Founder & Investor

SEBI Regd.(INH100004951)

Jasmeet Singh

About me :

Currently managing assets of 5 Crore+ & still sleep like a baby every night because Valueguyz makes life simpler.

I am passionate about 3 things in my life Financial System, Fitness & Photography

I got introduced to Financial system through Forex Trading back in 2007 during my 3rd Year of Engineering & It was too complex yet magnificent. Officially I entered Indian Stock Market in early 2008 at the very beginning of Global Financial Crisis, but what the hell did I know for me it was the last semester & time to get serious about my passion ie, Counter Strike

Legends :

RoCE : Return on Capital Employed (Effective)

PAT(Avg.) : Net Profit after tax ( Average )

CMP : Current Market Price

MoS : Margin of Safety

DISCLAIMER

This analysis is my personal opinion shared on public media (Blog) & is not a recommendation of any sort in any manner. I am currently not registered with SEBI in any capacity but in process of being a registered Research Analyst with SEBI. I have no financial interest in aforesaid company & don't hold any stock on the date of writing this post.