Pramod Amthe, Head of Institutional Equity Research at InCred Capital, said that the recent goods and services tax (GST) cuts have created two types of opportunities in the market—companies that benefit from higher demand and those that gain from margin recovery.

“ Apollo Tyres falls into the second category,” Amthe said. “Tyre prices or discounting has been phenomenal, and 7-8% price cuts due to GST may not move consumption much, but it will bring margins back sooner than normal.” He added that falling natural rubber prices and cost rationalisation from the closure of high-cost Netherlands centres also support Apollo’s earnings outlook.

Amthe noted that InCred recently exited E2E Networks after a “nearly 50% rally on the AI infrastructure boom” in the past two months.

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