Apollo Tyres Ltd - Results In-line, Maintain ACCUMULATE - Emkay

Reco: ACCUMULATE
CMP: Rs 84
Target Price: Rs 95

- Results marginally above est. led by better operational performance in South Africa / Europe geographies.

- Consolidated gross margins expand 300 bps QoQ led by moderation in rubber prices and pricing action.

- OEM demand remains weak. Expect high single digit growth in replacement segment. Europe volumes to remain flat.

- Revise EPS by 3.9%/5.2% to Rs 13/15.1 in FY13/14 to factor in stable rubber outlook. Retain ACCUMULATE rating with target of Rs 95 (1.4x/1.2x P/B on FY13/14E).

Source : Equity Bulls

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