Apollo Bottom Line Expected to Grow 29% CAGR to 2011

According to Mumbai based private equity advisory and investment banking services provider Firstcall India, the top and bottom line at Apollo Tyres is expected to grow at a compound annual growth rate of 15 per cent and 29 per cent in the financial years from 2008 to 2011. This is one of the reasons Firstcall is currently recommending a ‘buy’ on Apollo shares, with a price target of Rs 64 (£0.83) as against the November 25 market price of Rs 52.05.

Other positive factors affecting the potential worth of the Indian tyre makers shares are plans to increase capacity by 50 per cent in the coming years and a doubling of exports in the coming year. Furthermore, IRIS Exclusive notes Apollo intends to invest RS 9 billion (£116.9 million) in capital expenditure during the year, most of which will be directed to more than doubling capacity at its Chennai factory.