Apollo Tyres is moving up continously from around 32 levels in mid November 2007....
Now it is at Rs.58....
Looks like an interesting story....

FY07 Sales Rs.3774.34 cr
FY07 Net Profit Rs.113.42 cr
Book Value based on FY07 Rs.207

Last Quarter Results '08
Sales Rs.844 cr
Net Profit Rs. 51 cr

Market Cap Rs.2703 crores
MCap/Sales 0.74

So its about to double its profits this year.....Hence stock is seeing a re-rating....
TEDies do give your views and future prospects for this company....

tyre companies are suffering from higher raw material prices
I have heard that the prices have been increased but not to full extent
expect next two quarters to be bad

I think the stocks have bottomed out (that does not mean that they will not go down if the market crashes)

risk reward is in favor

The logic for taking a position tyre companies

1. if the commodity prices remain high - the tyre prices would go up across the companies and margins can be restored

2. if commodity prices fall it would be double bonanza for tyre companies

3. if the raw material price go up further - less likely as raw material prices at historical highs

http://breport.myiris.com/sharekhan/APOTYRES_20101111.pdf

Originally posted by values excel_monkey,The recent announcement of the govt. nod for cutting down taxes on import of rubber can add upto the margins as well...http://www.bloomberg.com/news/2010-12-24/apollo-other-tiremakers-stocks-jump-as-government-cuts-rubber-import-tax.html

Will not have Much Impact in near future as Internationally also rubber prices are Moving higher

Apollo Tyres specifically has been in a range of 60-70 since the past 3 odd months now...is thr any more correction on the cards ?