Apollo Tyres Ltd is one of India’s leading tyre manufacturers, with a strong presence in both the domestic and international markets. The company produces a wide range of tyres for passenger cars, trucks, buses, and off-highway vehicles, and operates manufacturing facilities in India, the Netherlands, and Hungary. Despite its brand strength and global footprint, Apollo Tyres has faced recent headwinds—including sharp profit contraction, high debt, and low return ratios—which have weighed on investor sentiment. This article provides a balanced, fact-based outlook and realistic share price targets for each year from 2026 to 2030.
Listed: Yes – on BSE (500220) and NSE (APOLLOTYRE)
Clarifications:
What is the share price today?₹485 (as of Jan 2026).
Is Apollo Tyres a good buy? Only for long-term, high-conviction investors who believe in global tyre demand recovery. Not suitable for conservative portfolios due to current weakness.
Why is the stock falling? Due to 45.5% YoY profit decline, high debt (₹2,893 Cr), and low ROE (5.96%).
Apollo vs MRF?MRF is superior—debt-free, higher ROE (~18%), premium pricing, and stronger balance sheet. Apollo is more affordable but riskier.
Apollo vs CEAT?CEAT has better ROCE (~15% vs 9.8%) and lower leverage. Both face similar sector challenges, but CEAT is slightly better positioned.
Future outlook: Tied to global auto replacement demand, raw material stability, and European market recovery.
Apollo Tyres: Key Financial Snapshot
Metric
Value
Market Capitalization
₹30,815.10 Cr
Current Share Price
₹485
52-Week High / Low
₹557 / ₹368
P/E (TTM)
39.91
P/B (TTM)
2.86
Book Value (TTM)
₹169.79
EPS (TTM)
₹12.16
ROE
5.96%
ROCE
9.77%
Dividend Yield
1.04%
Debt
₹2,892.77 Cr
Cash Reserves
₹409.12 Cr
Sales Growth (YoY)
3.62%
Profit Growth (YoY)
–45.46%
Shareholding Pattern
Category
Holding (%)
Promoters
36.93%
Domestic Institutions (DII)
29.55%
Public (Retail)
21.34%
Foreign Institutions (FII)
12.18%
Others
0%
Note: Strong institutional ownership reflects confidence in long-term strategy.
Apollo Tyres Share Price Target Forecast (2026–2030)
Given the profit collapse, high leverage, and weak returns, upside is limited unless earnings rebound sharply. Targets assume:
EPS recovery by FY27 as input costs stabilise
P/E compression from 40x to 25–28x by 2028
Debt reduction through operating cash flows
Year
Target Price Range (₹)
2026
₹500 – ₹560
2027
₹530 – ₹610
2028
₹560 – ₹660
2029
₹590 – ₹710
2030
₹620 – ₹760
Year-wise Breakdown
Apollo Tyres Share Price Target 2026
Year
Target 1
Target 2
2026
₹500
₹560
Rationale: Near-term upside is capped by 45% profit decline and high debt-to-equity (~1.7x). However, Q3 FY26 showed early signs of margin stabilisation.
Apollo Tyres Share Price Target 2027
Year
Target 1
Target 2
2027
₹530
₹610
Rationale: Expected benefit from European demand recovery and raw material cost normalisation. The replacement tyre segment remains resilient.
Apollo Tyres Share Price Target 2028
Year
Target 1
Target 2
2028
₹560
₹660
Rationale: By 2028, capacity utilisation in Hungary and India could improve. If ROCE rises above 12%, re-rating is possible.
Apollo Tyres Share Price Target 2029
Year
Target 1
Target 2
2029
₹590
₹710
Rationale: Long-term play on global vehicle parc growth and tyre replacement cycle. Success depends on brand premiumization and OEM partnerships.
Apollo Tyres Share Price Target 2030
Year
Target 1
Target 2
2030
₹620
₹760
Rationale: The upper end assumes sales growth rebounds to 8–10%, ROE improves above 9%, and debt/EBITDA falls below 2x. Even at ₹760, P/E would be ~28x—reasonable for recovery.
Strengths vs Risks
✅ Strengths
Strong global brand (Vredestein in Europe)
Diversified product portfolio across vehicle segments
Backward integration in synthetic rubber
Beneficiary of replacement tyre demand
⚠️ Risks
High debt (₹2,893 Cr) limits financial flexibility
Low ROE (5.96%) and ROCE (9.77%) indicate poor capital efficiency
Intense competition from MRF, CEAT, and imports
Investment Suitability
Factor
Assessment
Risk Profile
High (cyclical, leveraged)
Time Horizon
Long-term (5+ years)
Volatility
High
Dividend/Income
Low but consistent (1.04% yield)
Ideal Investor
Cyclical investor betting on global auto recovery; not for conservative portfolios
FAQs
Only if you accept short-term pain for long-term gain. Avoid if seeking stable earnings.
₹485 (as of January 2026).
Bright long-term—tied to global tyre demand—but near-term execution is key.
No. MRF is debt-free, higher ROE, and is premium-priced. Apollo is more affordable but riskier.
Due to 45% profit drop, high debt, and weak returns, not a business model failure.
Ceat has better ROCE (~15%) and lower debt. Apollo has a stronger global presence, but Ceat is currently better managed.
Final Verdict
Apollo Tyres is a quality brand in a tough cycle. While its global scale and replacement demand offer long-term potential, current profit erosion and high leverage make it a risky buy. Our 2026–2030 price targets (₹500–₹760) reflect cautious optimism—assuming recovery in auto demand and cost management. Investors should wait for clearer earnings stabilisation before building large positions.
📌 Disclaimer: Price targets are estimates based on current fundamentals and sector trends. They are not investment advice. Please consult a SEBI-registered advisor before investing.
Hi, I’m Raj Mittal, a stock market content writer focused on company analysis, share price trends, and fundamental research. I create simple, research-based insights to help investors make smarter market decisions.
