Tyre companies announced disappointing results for the June quarter, with some missing market estimates, including Apollo Tyres. The firm faced challenges in the June quarter, including commodity headwinds and a loss of market share in the truck industry.
Following the release of its results on August 8, Apollo Tyres’ stock saw a roughly 7% decline as a result of this disappointment, which caused it to correct by 15% from its all-time high of ₹568 per share, which it set on July 30. Notably, the stock has dropped by around 13% this month, its lowest monthly performance since June 2022, as a result of the recent sell-off. The stock is now trading at its lowest level for the past eight weeks.
Brokerages are predicting more declines based on the company’s June quarter results. Lowering its target price from ₹506 to ₹442 per share, Elara Capital downgraded the company from ‘Neutral’ to ‘Sell’.
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