Apollo Tyres skids 4% despite four-fold growth in Q4 profit; here's why

Shares of Apollo Tyres tumbled nearly 4% in early trade on Wednesday even after the company reporting higher than expected earnings in March 2023 quarter. The share of the tyre maker, which touched its 52-week high in the previous session, witnessed profit booking after rising nearly 7% in the last five consecutive trading days.

Snapping five session losing streak, Apollo Tyres shares opened 1.7% lower at ₹375 against the previous closing price of ₹381.60 on the BSE. In the first hour of trade so far, the stock declined as much as 3.9% to ₹366.60, while the market capitalisation slipped to ₹23,403 crore. On the volume front, 1.8 lakh shares changed hands over the counter as compared to the two-week average volume of 1.09 lakh stocks.

The share price of Apollo Tyres currently trades 4.5% lower than its 52-week high of ₹383.25 touched in the previous session. The stock has risen around 120% against its 52-week low of ₹167.15 hit on June 20, 2022. The midcap stock has risen 85% in the last one year, while it gained 25% in six-month period. In the calendar year 2023, the counter climbed 12%, while it added 12% in a month.

Shares of Apollo Tyres tumbled nearly 4% in early trade on Wednesday even after the company reported higher than expected earnings in March 2023 quarter. The share of the tyre maker, which touched its 52-week high in the previous session, witnessed profit booking after rising nearly 7% in the last five trading days.

Snapping five session losing streak, Apollo Tyres shares opened 1.7% lower at ₹375 against the previous closing price of ₹381.60 on the BSE. In the first hour of trade so far, the stock declined as much as 3.9% to ₹366.60, while the market capitalisation slipped to ₹23,403 crore. On the volume front, 1.8 lakh shares changed hands over the counter as compared to the two-week average volume of 1.09 lakh stocks.

The share price of Apollo Tyres currently trades 4.5% lower than its 52-week high of ₹383.25 touched in the previous session. The stock has risen around 120% against its 52-week low of ₹167.15 hit on June 20, 2022. The midcap stock has risen 85% in the last one year, while it gained 25% in six-month period. In the calendar year 2023, the counter climbed 12%, while it added 12% in a month.

For the full financial year 2023, Apollo Tyre posted a 73% rise in net profit to ₹1,105 crore, and a 17.3% growth in revenue to ₹24,568 crore as compared to the previous fiscal.

In terms of geography, the Asia Pacific/Middle East/Africa (APMEA) region posted a 10% rise in sales to ₹4,433 crore, while the Europe market reported a 9% growth to ₹1,839 crore.

The board of the company has recommended a final dividend of ₹4 per share, and a special dividend of ₹0.50 on the occasion of the company’s 50th annual general meeting. In the past 12 months, Apollo Tyres declared an equity dividend amounting to ₹3.25 per share, while it has paid 22 dividends since 2001. At the current share price level, the dividend yield stands at 0.88%.

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