Buy Apollo Tyres With Target Of Rs 68

Buy Apollo Tyres With Target Of Rs 68Stock market analyst Prakash Gaba has maintained 'buy' rating on Apollo Tyres Ltd stock with a target of Rs 68.

According to analyst, the stock can be purchased with a stop loss of Rs 63.

The stock of the company, on Nov 24, closed at Rs 65.10 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 88.80 and a low of Rs 46.65 on BSE.

Current EPS & P/E ratio stood at 5.88 and 11.19 respectively.

Apollo Tyres Ltd declared a 58.79% fall in its net profit, which stood at Rs 53.25 crore during the three month period ended September 30.

The company recorded loss because of high input costs.

In a declaration, the company said, "Of particular concern to the Board is the spiralling prices of natural rubber to current all-time highs, which have sharply impacted the Indian operations."

During the second quarter, the company's net sales dropped 4.75% to Rs 1,948.92 crore as compared to Rs 2,046.19 crore during the same period of 2009.

Apollo Tyres Ltd will have to lift rates by around 15-20% to maintain margins on record high rubber costs.

Indian tyre manufacturers have been forced to purchase rubber at peak rates, as un-seasonal rains constrained supply in the world's fourth major producer.




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