Apollo Tyres shares are in focus after Morgan Stanley maintained an ‘Equal-weight’ rating on the stock, with a target price of Rs 503 per share.
The brokerage noted that Apollo Tyres plans to discontinue manufacturing at its Dutch plant by the summer of 2026. Production at the Dutch facility had already been scaled down since 2020 and currently accounts for only about 30% of the company’s European production.
Following the closure, Apollo will shift production to its Hungarian facility, with the remaining demand being met from its plants in India. Morgan Stanley highlighted that this move is aligned with the company’s focus on improving margins and free cash flow (FCF).
However, the brokerage also pointed out that near-term closure costs could weigh on margins temporarily.
At the current market price of Rs 461.00 per share, Morgan Stanley’s target price of Rs 503 implies an upside of nearly 9%.
Disclaimer: This article is for informational purposes only. Investors are advised to consult certified financial advisors before making any investment decisions.
