Apollo Tyres' (NSE:APOLLOTYRE) earnings growth rate lags the 22% CAGR delivered to shareholders

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. Long term Apollo Tyres Limited (NSE:APOLLOTYRE) shareholders would be well aware of this, since the stock is up 149% in five years. Unfortunately, though, the stock has dropped 4.6% over a week. But this could be related to the soft market, with stocks selling off around 2.2% in the last week. Although Apollo Tyres has shed ₹15b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During five years of share price growth, Apollo Tyres achieved compound earnings per share (EPS) growth of 18% per year. This EPS growth is reasonably close to the 20% average annual increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. In fact, the share price seems to largely reflect the EPS growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). NSEI:APOLLOTYRE Earnings Per Share Growth January 23rd 2026 Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Apollo Tyres' TSR for the last 5 years was 166%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective It's good to see that Apollo Tyres has rewarded shareholders with a total shareholder return of 16% in the last twelve months. And that does include the dividend. Having said that, the five-year TSR of 22% a year, is even better. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Apollo Tyres , and understanding them should be part of your investment process. For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Indian exchanges.