See Apollo Tyres above Rs 100/shr on US court ruling: Quant

Written By Unknown on Selasa, 17 Desember 2013 | 10.54

Quant Capital analyst Basudeb Banerjee expects  Apollo Tyres to top Rs 100 near term following the Delaware Court's ruling in the in the Cooper Tire case.

The Court yesterday dismissed Cooper Tire's appeal against Apollo Tyres' demand for reducing the purchase cost.

According to a report in the Wall Street Journal, the latest ruling now puts the matter back in the Lower State Court, and Cooper Tire needs to get a favourable ruling by December 31 for the acquisition to proceed on the original terms first announced in June this year.

Apollo Tyres is down 5 percent so far this calendar and has underperformed peers in the domestic tyre industry by a wide margin. Concerns that the proposed acquisition of Cooper was expensive and value-destructive led to investors ignoring Apollo Tyres even as shares of other tyre companies rallied on falling rubber prices.

Banerjee feels that it is better for Apollo shareholders if the company decides to walk out of the deal.

He sees Rs 120 as a fair value for the stock.



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