Apollo Tyres Consolidates: SEBI RA Deepak Pal Sees Dip Toward ₹445 As Long-Term Entry

Apollo Tyres is drawing attention as it trades in a consolidation phase following a recent recovery.

SEBI-registered research analyst Deepak Pal shared his view, noting both the company’s financial strength and its current chart setup.

On the technical front, Pal observed that the stock was currently trading between its 200-day, 55-day, and 14-day exponential moving averages (EMAs), reflecting a phase of indecision. 

He pointed out that the relative strength index (RSI) was around 51, while the moving average convergence divergence (MACD) looked weak. However, the parabolic stop and reverse was showing a positive bias.

Pal pointed out that Apollo Tyres bounced back after hitting a low of ₹435.60 on June 23, climbing to ₹471 by July 3. On July 4, the stock opened at ₹462.95, climbed to ₹466.60 during the day, slipped to a low of ₹456.35, and finally settled at ₹459.15. 

Pal noted that it continues to hold steady near its 14-day and 55-day exponential moving averages, which he said are acting as strong support zones.

Pal said that any dip near the 14-day and 55-day EMA zones could offer a long-term entry opportunity with a stop-loss below ₹445. 

On the upside, he identified ₹475 to ₹480 as the next resistance zone.

Pal said Apollo Tyres, which makes tyres for everything from cars to heavy-duty vehicles, posted ₹25,184 crore in revenue for FY24, with net profit coming in at ₹1,508 crore. 

The company’s earnings per share stood at ₹26.2, and the stock trades at a reasonable valuation of around 17 times earnings. 

Pal added that promoter holding was around 37.34%, supported by participation from both foreign and domestic institutional investors. He noted that the company has a debt-to-equity ratio of approximately 0.45 and a return on equity close to 14%. 

While expansion in premium tyre segments—especially in Europe—has been a focus, Pal flagged risks including raw material cost swings and a potential slowdown in the auto sector.

The stock has declined 12.3% so far in 2025.

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