Nomura has retained its ‘Neutral’ rating on Apollo Tyres, with a target price of Rs 490 per share, marginally above the current market price of Rs 481. The brokerage flagged sub-par growth recovery and a weaker-than-expected Q4FY25 performance.
According to Nomura, the company’s Q4 results came in below estimates, with soft demand in the commercial vehicle (CV) and export segments posing challenges to the overall growth trajectory. While the benefit of commodity tailwinds has supported margins in recent quarters, Nomura noted that these gains are now largely factored into current valuations.
The brokerage continues to adopt a cautious stance given the uncertainty around demand revival, particularly in non-domestic markets.
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