Apollo Tyres: Investment Decision Dilemma Case Solution

This Case is about FINANCIAL ANALYSIS, FINANCIAL MANAGEMENT

PUBLICATION DATE: November 11, 2014 PRODUCT #: W14561-PDF-ENG

In Gurgaon, India, an investor sat at home in early March 2012 analyzing the most recent fiscal information regarding Apollo Tyres Limited, the leading tire maker in India. In the last decade, the firm had experienced exceptional increase opportunities and had substantially diversified its product and geographical mixture through organic investment and tactical acquisitions.

Yet, after nearly doubling between 2007 and 2010, its share price hadn’t found any major appreciation in the past two years, producing just 12 per cent yield between 2010 and 2012. Would this be a great investment? He chose to make use of the free cash flow discounting valuation technique to recognize and value this high increase but undervalued stock.

Apollo Tyres: Investment Decision Dilemma Case Solution
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