Import curbs, India sales key triggers for Apollo Tyres

Management cautious on near-term profitability given higher start-up costs in European operations

Even as the June quarter (Q1) numbers were poor, the Apollo Tyres stock clocked nine per cent gains in trade on Monday. Interestingly, even as there could be some more pain in the near term before prospects start looking better for the company, the Street is bullish on Apollo Tyres. Why?
 
For one, there is expectation of good growth in demand in India, as well as likely gains from favourable policy initiatives.
 
The management is positive about demand growth in India in the passenger vehicles segment and is hopeful of a revival in commercial vehicle (CV) demand. The