Apollo Tyres - Best Play On OEM Volume Recovery Amid Margin Tailwinds: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.We have raised our margin estimates by ~90 basis points for FY24/FY25 each while volume estimates have been upped by 3% each for FY24/FY25. We have seen a ~20% correction over average prices of Q1 FY23 in the TSR20 (a composite index of all the raw materials used in tyre making), ~15% correction in Indian Kottayam rubber and ~35% correction in the Thai rubber index. With crude oil sustaining below $90/barrel of oil will lead to further correction in synthetic rubber prices, which have already declined by ~15% from Q1 FY23 average prices. Furthermore, Apollo Tyres’ market leadership in truck-bus radial and passenger car radial segments is leading to improving pricing power (8% price hike in Q1 FY23 and 2-3% in Q2 FY23 in PCR), which would further aid margins. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Apollo Tyres - Best Play On OEM Volume Recovery Amid Margin Tailwinds: Nirmal Bang

Apollo Tyres - Best Play On OEM Volume Recovery Amid Margin Tailwinds: Nirmal Bang

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