 "BoA-ML raises target price of Apollo Tyres; stock surges 5%")
Shares of Apollo Tyres jumped 4.9 percent to Rs 98.20 after Bank of America-Merrill Lynch raised its target price to Rs 135 from Rs 115 , and maintained “buy” rating on the stock, in a report.
BoA-ML said that it expects Apollo’s EBITDA margins to sustain improvement through fiscal 2014 driven by better sales mix and improved utilisation in the city of Chennai.
[caption id=“attachment_452820” align=“alignleft” width=“380”]  Reuters[/caption]
The investment bank also expected “pricing discipline” at Apollo, and added that “strong” cash generation and “sharp moderation” in capex will lower debt levels.
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