Apollo Tyres - Q1FY2014 Result Preview - Angel Broking

Apollo Tyres (APTY) is slated to announce its 1QFY2014 results today. We expect the company to post a ~2% yoy decline in the consolidated top-line to Rs. 3,091cr, primarily on account of an ~15% and ~2% yoy decline in South Africa and India revenues respectively. However, we expect the European operations to register a revenue growth of ~3% yoy. We expect operating margins to improve ~40bp yoy to 11.5%, driven by a decline in the prices of natural rubber. As a result, we expect the consolidated bottom-line of the company to improve by ~4% yoy to Rs. 144cr for the quarter. At Rs. 63, the stock is trading at 4.2x its FY2015E earnings. Currently, we have a Neutral rating on the stock.

Source : Equity Bulls

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