Apollo Tyres shares recoup after hitting their 3-month low

By: | Updated: May 12, 2016 4:14 PM

Apollo Tyres shares hit their 3-month low in the early trade on Thursday after the company reported 20.26 per cent decline in its consolidated net profit at Rs 245.16 crore for the fourth quarter ended March 31, 2016

bse sensex, nse nifty, stock market today, apollo tyresApollo Tyres shares hit their 3-month low in the early trade on Thursday after the company reported 20.26 per cent decline in its consolidated net profit at Rs 245.16 crore for the fourth quarter ended March 31, 2016

Apollo Tyres shares hit their 3-month low in the early trade on Thursday after the company reported 20.26 per cent decline in its consolidated net profit at Rs 245.16 crore for the fourth quarter ended March 31, 2016, hit by import of Chinese tyres into the country.

However, the scrip reversed its initial losses and was trading in green in the afternoon trade. At 12.30 pm, Apollo Tyres was up 1.96 per cent at Rs 156.40. The scrip opened the day at Rs 149.80 and touched a high and low of Rs 157.65 and Rs 148.65, respectively, in trade so far. The share price of the company closed at Rs 153.40 on Wednesday.

The tyre maker had posted a net profit of Rs 307.48 crore for the January-March period of the year ago fiscal.

Net sales of the company also declined to Rs 2,966.11 crore for the fourth quarter, as compared to Rs 3,133.93 crore during the same period of previous fiscal.

According to UBS, there will be no domestic revenue growth in FY17 for Apollo Tyres and sees downside risk to margins. The brokerage house cut target price of Apollo Tyres to Rs 180 from Rs 200 and maintained ‘Neutral’ rating on the stock.

Later, the share price of the company closed 3.39 per cent up at Rs 158.60.

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