Apollo Tyres Apollo Tyres Nifty Auto

Date Share Price Return Index Price Index Return

1/Apr/15 173.30 8,188.20
1/May/15 189.85 0.10 8,536.75 0.04
1/Jun/15 170.25 -0.10 8,383.25 -0.02
1/Jul/15 202.55 0.19 8,544.85 0.02
1/Aug/15 180.00 -0.11 7,948.55 -0.07
1/Sep/15 179.95 0.00 7,759.60 -0.02
1/Oct/15 191.55 0.06 8,091.95 0.04
1/Nov/15 162.70 -0.15 8,481.85 0.05
1/Dec/15 156.20 -0.04 8,254.75 -0.03
1/Jan/16 147.45 -0.06 7,605.05 -0.08
1/Feb/16 157.85 0.07 7,092.30 -0.07
1/Mar/16 174.90 0.11 8,087.60 0.14
1/Apr/16 160.15 -0.08 8,288.95 0.02
1/May/16 156.45 -0.02 8,720.40 0.05
1/Jun/16 151.50 -0.03 8,863.75 0.02
1/Jul/16 163.30 0.08 9,470.85 0.07
1/Aug/16 183.05 0.12 9,897.30 0.05
1/Sep/16 219.95 0.20 10,029.30 0.01
1/Oct/16 201.90 -0.08 10,048.50 0.00
1/Nov/16 190.90 -0.05 9,113.80 -0.09
1/Dec/16 184.90 -0.03 9,141.75 0.00
1/Jan/17 180.40 -0.02 9,837.75 0.08
1/Feb/17 187.60 0.04 9,654.65 -0.02
1/Mar/17 208.70 0.11 9,880.20 0.02
1/Apr/17 244.00 0.17 10,255.15 0.04
1/May/17 228.60 -0.06 10,870.80 0.06
1/Jun/17 240.70 0.05 10,540.25 -0.03
1/Jul/17 266.50 0.11 11,002.65 0.04
1/Aug/17 253.40 -0.05 10,612.55 -0.04
1/Sep/17 245.75 -0.03 10,811.25 0.02
1/Oct/17 246.00 0.00 11,370.00 0.05
1/Nov/17 232.00 -0.06 11,292.90 -0.01
1/Dec/17 268.25 0.16 12,009.70 0.06
1/Jan/18 254.85 -0.05 11,611.90 -0.03
1/Feb/18 274.55 0.08 11,157.20 -0.04
1/Mar/18 277.05 0.01 10,821.35 -0.03
1/Apr/18 294.35 0.06 11,625.75 0.07
1/May/18 269.30 -0.09 10,994.45 -0.05
1/Jun/18 254.00 -0.06 10,709.05 -0.03
1/Jul/18 292.80 0.15 10,973.75 0.02
1/Aug/18 251.40 -0.14 11,009.25 0.00
1/Sep/18 212.25 -0.16 9,590.25 -0.13
1/Oct/18 218.80 0.03 8,820.55 -0.08
1/Nov/18 239.05 0.09 9,270.20 0.05
1/Dec/18 235.95 -0.01 9,235.55 0.00
1/Jan/19 204.35 -0.13 8,218.40 -0.11
1/Feb/19 217.45 0.06 8,355.15 0.02
1/Mar/19 222.75 0.02 8,335.35 0.00
1/Apr/19 206.05 -0.07 8,350.60 0.00
1/May/19 194.50 -0.06 8,175.50 -0.02
1/Jun/19 200.65 0.03 7,928.05 -0.03
1/Jul/19 157.50 -0.22 6,851.65 -0.14
1/Aug/19 171.25 0.09 7,009.30 0.02
1/Sep/19 181.65 0.06 7,493.15 0.07
1/Oct/19 190.30 0.05 8,449.50 0.13
1/Nov/19 168.05 -0.12 8,086.00 -0.04
1/Dec/19 163.90 -0.02 8,248.30 0.02
1/Jan/20 166.50 0.02 8,086.55 -0.02
1/Feb/20 158.00 -0.05 6,903.95 -0.15
1/Mar/20 79.40 -0.50 4,731.30 -0.31
 CAPM Model
Apollo Average -0.58%
Apollo Return -6.92%
Apollo Beta 1.07
10 year Bond rate 5.84%
Market Return (Rm) -7.77%
Index Average -0.65%
Index Return -7.77%
Moody's Rating Baa3
Default Spread Rate 2.58%
Risk Free Rate (Rf) 3.26%
Actual return -6.92%
Beta (β) 1.07
Apollo's Expected Return (Ke) -> Rf + β*(Rm - Rf) -8.51%
(In Million) 2016
Long term Borrowings ₹ 6,492.72
Short Term Borrowings ₹ 7,398.99
Total Interest Bearing Debt ₹ 13,891.71
Interest Expense (Finance Costs) ₹ 926.01
Tax Expense ₹ 4,676.89
Profit Before Tax ₹ 15,906.49
Effective Tax Rate 29.40%
Before Tax Kd = Interest / Avg Debt
After Tax Kd = Before Tax Kd *(1-t)
 2017 2018 2019 2020
₹ 21,559.04 ₹ 37,002.20 ₹ 41,663.26 ₹ 51,478.80
₹ 10,886.27 ₹ 7,454.40 ₹ 5,546.72 ₹ 14,320.01
₹ 32,445.31 ₹ 44,456.60 ₹ 47,209.98 ₹ 65,798.81
₹ 1,028.80 ₹ 1,629.20 ₹ 1,810.70 ₹ 2,808.33
₹ 3,365.46 ₹ 2,884.49 ₹ 2,082.89 ₹ 670.42
₹ 14,355.45 ₹ 10,123.31 ₹ 8,881.29 ₹ 5,434.37
23.44% 28.49% 23.45% 12.34%
6.89%
6.04%
 Cost of Capital
Cost of Equity -8.51%
Cost of Debt 6.04%
# shares outstanding (In Million) 70738
Current Share price (As on 8th Aug 2020) ₹ 123.50
Market Value of Equity ₹ 8,736,143.00
Debt Value ₹ 65,798.81
Debt + Equity ₹ 8,801,941.81
Weight of Debt 0.75%
Weight of Equity 99.25%
WACC -8.40%

Note: All values are in Millions