Nirmal Bang, one of the leading equity research-cum-broking house, is of the view that investors can buy Apollo Tyres Ltd with a short-term target price of Rs 39-45.

According to experts at Nirmal Bang, huge delivery based volume witnessed in the counter, the stock is in the edge of giving a big breakout above the 35 mark.

The strong support level for the stock has been suggested at Rs 31.

Today (June 18), the shares of the company opened at Rs 32 on BSE. Current EPS & P/E ratio stood at 2.15 and 14.63 respectively. The share price has seen a 52-week high of Rs 41 and a low of Rs 14.75 on BSE.

It is noticeable from the company’s charts that it has been on an intermediate-term upturn after hitting a low of Rs 14.7 in March this year.

This low is in fact a 52-week low for the stock. It has been making higher peaks and higher troughs since. While trending up, the company’s stock decisively came through key resistances at Rs 20 and Rs 26 during early April and early May respectively.

Moreover, it breached the 200-day moving average and is trading way above this level.

After having support from the intermediate-term up trendline on June 16, the company’s stock climbed 9% with heavy volumes. Both daily and weekly relative strength index (RSI) are looking in the optimistic region

Apollo Tyres, on May 19, declared that the company has successfully completed the acquisition of 100% shareholding of Dutch company `Vredestein Banden BV` (VBBV) via its special purpose vehicle.

The said acquirement has been funded through internal accruals and external loan finance.

This acquisition will give the company a way to foray into the European market with manufacturing plant and market and distribution network of VBBV plus access to high end technology.