Results: Apollo Tyres Limited Exceeded Expectations And The Consensus Has Updated Its Estimates
It's been a good week for Apollo Tyres Limited (NSE:APOLLOTYRE) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.9% to ₹445. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at ₹74b, statutory earnings beat expectations by a notable 38%, coming in at ₹5.52 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Apollo Tyres' 23 analysts is for revenues of ₹321.5b in 2027. This reflects a notable 9.5% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ₹26.90, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹321.3b and earnings per share (EPS) of ₹26.22 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for Apollo Tyres
There's been no major changes to the consensus price target of ₹481, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Apollo Tyres analyst has a price target of ₹580 per share, while the most pessimistic values it at ₹366. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Apollo Tyres' past performance and to peers in the same industry. The analysts are definitely expecting Apollo Tyres' growth to accelerate, with the forecast 13% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Apollo Tyres is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Apollo Tyres' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹481, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Apollo Tyres analysts - going out to 2029, and you can see them free on our platform here.
You still need to take note of risks, for example - Apollo Tyres has 2 warning signs we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.