Apollo Tyres extends gains on brokerage upgrades
Bank of America-Merrill Lynch raises target price to Rs 135 from Rs 115.
Apollo Tyres is trading higher by 2% at Rs 101, extending its previous day’s 6% rally after Bank of America-Merrill Lynch (BoA-ML) raises target price to Rs 135 from Rs 115.
The Reuters report suggests that BoA-ML says expects Apollo's EBITDA margins to sustain improvement through fiscal 2014 driven by better sales mix and improved utilisation in the city of Chennai.
Meanwhile, in BSE filing Apollo Tyres said that no approval is required for the purchase of equity shares of the company by the foreign institutional investors (FIIs) till the combined holding of all FIIs in the company reaches the threshold limit of 26%. As on June 30, FIIs held 22.5% stake in the company, the data shows.
The stock opened at Rs 100 and hit new high of Rs 102.45 on the NSE. A combined 3.1 million shares have already changed hands on the counter till early noon deals against an average sub three million shares that were traded daily in past two weeks.