Apollo Tyres surges, BoA-ML raises target price

Shares in Apollo Tyres jump 4.9 percent to Rs 98.20 after Bank of America-Merrill Lynch raises target price to 135  from Rs 115, while maintaining its "buy" rating on the stock, in a report dated Wednesday.

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.

Investment bank also expects "pricing discipline" at Apollo, while adding "strong" cash generation and "sharp moderation" in capex will lower debt levels.