Buy Apollo Tyres, target 66: Sharekhan

Bangalore: By tweaking the earnings estimates of the company, Sharekhan has recommended a buy rating on Apollo Tyres, with price target of 66. Sharekhan has fine-tuned the earnings estimates of Apollo Tyres for financial year 2010 (FY2010) and FY2011, by factoring the higher natural rubber prices and improved volume growth.

Apollo Tyres is an India-based tyre manufacturer that produces a range of automotive tyres for passenger cars, truck and bus, farm, Off-The-Road, industrial and specialty applications like mining, retreaded tyres, and retreading material. These are produced across Apollo's eight manufacturing locations in India, Netherlands and South Africa. Its brands include Apollo, Dunlop, Kaizen, Maloya, Regal and Vredestein. On May 15, 2009, the company completed the acquisition of Vredestein Banden B.V., a Dutch company.

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Sharekhan's earnings per share (EPS) estimate of Apollo Tyres for FY2010 and FY2011 stands at 7.1 and 7.4 respectively. With the recommended target price of 66, if the stock is bought at Monday's closing price of 46.15, the percentage of gain would be 43.01 percent.