The brokerage also raised its price target on the stock by nearly 10% to ₹450 per share from ₹410 earlier. The revised target implies an upside potential of around 7% from Monday’s closing price.
According to Kotak, Apollo Tyres has underperformed its peers over the past two years due to a loss of market share in the truck and bus radial (TBR) segment and the absence of operating leverage, which has weighed on margins.
However, the brokerage believes the company has taken corrective measures. It highlighted that Apollo’s volume trajectory has improved over the past two quarters and expects the momentum to continue.
Kotak cautioned that profitability may remain under pressure in the near term. However, it expects earnings to recover from the second half of FY27, supported by the recent decline in crude oil prices and the company’s price hikes.
The brokerage also expects the closure of Apollo Tyres’ plants in the Netherlands to improve the profitability of its European manufacturing operations from FY28 onwards.
Shares of Apollo Tyres were trading 1.37% higher at ₹426.40 on Tuesday. Despite the day’s gains, the stock has declined 14% so far in 2026.
First Published: Jun 30, 2026 12:20 PM IST
