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Apollo Tyres extends recent fall to 52-week low on debt worries

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Capital Market
Last Updated : Jun 17 2013 | 1:30 PM IST

Meanwhile, the S&P BSE Sensex was up 77.60 points or 0.4% at 19,255.53.

The stock fell on high volumes. On BSE, 21.92 lakh shares were traded in the counter as against average daily volume of 5.11 lakh shares in the past one quarter.

The stock hit a low of Rs 62.25 so far during the day, which is a 52-week low for the counter. The stock hit a high of Rs 66.45 so far during the day. The stock had hit a record high of Rs 102.45 on 14 September 2012.

The stock had underperformed the market over the past one month till 14 June 2013, falling 26.84% compared with the Sensex's 2.76% fall. The scrip had also underperformed the market in past one quarter, sliding 26.25% as against Sensex's 2.01% fall.

The mid-cap company has equity capital of Rs 50.40 crore. Face value per share is Re 1.

Shares of Apollo Tyres have dropped 31.03% from a recent high of Rs 92 on Wednesday, 12 June 2013 on concerns on the company's balance sheet about the impact of a large US acquisition.

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Apollo Tyres after trading hours on Wednesday, 12 June 2013 said that it has entered into a definitive merger agreement under which a wholly-owned step subsidiary of the company will acquire Cooper Tire & Rubber Company (Cooper), a company listed on the New York Stock Exchange, in an all-cash transaction valued at approximately $2.5 billion. This strategic combination will bring together two companies with highly complementary brands, geographic presence and technological expertise to create a global leader in tire manufacturing and distribution, Apollo Tyres said in a statement.

Cooper is the 11th largest tyre company in the world by revenue and it supplies premium and mid-tier tyres worldwide through renowned brands such as Cooper, Mastercraft, Starfire, Chengshan, Roadmaster and Avon. The combined company will be the seventh-largest tyre company in the world and will have a strong presence in high-growth end-markets across four continents, Apollo Tyres said. With a combined $6.6 billion in total sales in 2012, the combined company will have a comprehensive portfolio of signature brands and greater ability to cross-sell products in diverse countries with negligible overlap, Apollo Tyres said.

Apollo Tyres' consolidated net profit declined 9.7% to Rs 141.78 crore on 6% drop in net sales to Rs 3037.76 crore in Q4 March 2013 over Q4 March 2012.

Apollo Tyres manufactures tyres and tubes for cars, trucks, farm equipment and light commercial vehicles. The company also manufactures automobile flaps and retreading materials.

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First Published: Jun 17 2013 | 12:26 PM IST

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