While margins are likely to remain under pressure in near term, Apollo is expected to recover faster than peers once input costs stabilize; we factor in Apollo to post 37% earnings CAGR over FY22-24E. Given that it is nearing the end of the Capex cycle and with management's focus on sweating existing assets, we expect Apollo's leverage to reduce over FY22-24E, which would help shore up returns. Initiate with an ADD rating and a TP of INR229 / sh. Over the last few years, Apollo has invested in R&D, brand building, and expanding its distribution network. This has in turn led to market share improvement in both India and Europe. In India, while its share in TBR improved to 31% from 27% in FY18, its PCR share improved to 21% from 17% in FY18. It has also increased share in TBR and OHT segments in Europe in FY22. It has recently restructured its European business, leading to a sharp increase in EBITDA margin from 8% in FY20 to 18% in FY22. We expect Apollo to emerge as a major beneficiary of the favourable industry dynamics in India and continue to outperform Europe, given its lean cost structure.