Why is Goodyear India Ltd ?
1
Poor long term growth as Operating profit has grown by an annual rate -14.67% of over the last 5 years
2
The company has declared Negative results for the last 5 consecutive quarters
- PBT LESS OI(Q) At Rs 8.56 cr has Fallen at -44.5% (vs previous 4Q average)
- PAT(Q) At Rs 9.48 cr has Fallen at -35.1% (vs previous 4Q average)
- ROCE(HY) Lowest at 14.02%
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 10-Jan-25 and has generated -15.39% returns since then
- The stocks MACD and KST technical factors are also Bearish
4
With ROE of 7.8, it has a Very Expensive valuation with a 3.3 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -28.93%, its profits have fallen by -65.3%
5
Below par performance in long term as well as near term
- Along with generating -28.93% returns in the last 1 year, the stock has also underperformed BSE 500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tyres & Allied)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Goodyear India for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Goodyear India
-29.01%
-1.53
18.93%
SENSEX
0.45%
0.02
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
7.33%
EBIT Growth (5y)
-14.67%
EBIT to Interest (avg)
31.47
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
3.49
Tax Ratio
26.32%
Dividend Payout Ratio
99.72%
Pledged Shares
0
Institutional Holding
8.85%
ROCE (avg)
39.06%
ROE (avg)
16.18%
Valuation Key Factors 
Factor
Value
P/E Ratio
42
Industry P/E
23
Price to Book Value
3.27
EV to EBIT
34.91
EV to EBITDA
16.54
EV to Capital Employed
4.38
EV to Sales
0.68
PEG Ratio
NA
Dividend Yield
1.80%
ROCE (Latest)
16.59%
ROE (Latest)
7.84%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Movement
1What is working for the Company
NO KEY POSITIVE TRIGGERS
-20What is not working for the Company
PBT LESS OI(Q)
At Rs 8.56 cr has Fallen at -44.5% (vs previous 4Q average
PAT(Q)
At Rs 9.48 cr has Fallen at -35.1% (vs previous 4Q average
ROCE(HY)
Lowest at 14.02%
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.36 times
NON-OPERATING INCOME(Q)
is 35.49 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is not working for Goodyear India
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 8.56 cr has Fallen at -44.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 15.42 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 9.48 cr has Fallen at -35.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 14.61 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 35.49 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Debtors Turnover Ratio- Half Yearly
Lowest at 7.36 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio