Buy Apollo Tyres With Stop Loss Of Rs 60
Technical analyst Prakash Gaba has maintained 'buy' rating on Apollo Tyres Limited stock with a target of Rs 67-68.
According to analyst, the investors can purchase the stock with a stop loss of Rs 60.
The stock of the company, on January 11, closed at Rs 61.90 on the Bombay Stock Exchange (BSE).
The share price has seen a 52-week high of Rs 88.80 and a low of Rs 50.25 on BSE.
Current EPS & P/E ratio stood at 5.88 and 10.63 respectively.
Apollo Tyres inked a supplementary MoU with the Tamil Nadu administration on January 11 to expand its investment in a novel facility at Oragadam from Rs 1,650 crore as against Rs 2,100 crore.
At first, the company decided to make an investment of just Rs 450 crore in the new facility.
As per the state administration, Apollo Tyres reviewed its investment plans in an attempt to make 6,000 radial tyres for trucks and buses and 8,000 radial tyres for cars on a daily basis.
In spite of the import duty cut on natural rubber, the company, during the last month, said it may increase the rates of its products in the coming time to counterbalance affect on margins.
Apollo Tyres Chief Financial Officer Sunam Sarkar stated, "Our margins are under pressure because of very high prices of natural rubber. We are currently looking at increasing our product prices."