The revised target implies a potential upside of around 34% from Friday’s closing price of ₹439.95.
UBS said Apollo Tyres continues to trade at a valuation discount to its peers, while the stock has underperformed the broader tyre sector over the past four years.
However, the brokerage believes the outlook is improving as the management takes concrete steps to strengthen its India business. These include investments in brand building, including the sponsorship of the Indian cricket team’s jersey.
UBS also sees prospects for the company’s Europe business turning more constructive.
The brokerage believes investors remain overly focused on near-term commodity cost pressures and recent execution challenges, while overlooking Apollo Tyres’ significant earnings recovery potential once commodity headwinds ease.
While Q2FY27 could see further pressure, with natural rubber prices having risen 22% quarter-on-quarter in Q1FY27, UBS expects a meaningful improvement in earnings thereafter.
The brokerage expects EBITDA to rise 21% year-on-year in FY28E, supported by easing commodity pressures and improving business conditions.
With demand remaining robust and strategic initiatives beginning to gain traction, UBS believes the market is underappreciating Apollo Tyres’ medium-term earnings recovery potential.
Apollo Tyres shares ended 2.48% higher at ₹439.95 on Friday. The stock remains down around 11% so far in 2026.
First Published: Aug 24, 2026 8:07 AM IST
