Goodyear India Limited

Consumer Cyclical — Auto Parts · NSE

₹694.45+₹7.00 (+1.02%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Goodyear India Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Goodyear India Limited manufactures and sells tyres, tubes, and flaps under the Goodyear brand in India. The company offers automotive tyres, such as farm tyres and commercial truck tyres; and passenger car tyres. It is also involved in the trading of tyres, tubes, and flaps.

IndustryAuto Parts

SectorConsumer Cyclical

Employees925

Annual revenue₹2,462 Cr

How does it make money?

Turns over ₹2,462 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 925 employees supports ₹2.66 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.66 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 13.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -16% while net margin moved -41% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-16%

Margin effect-41%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.5% a year
✗ Profit has declined at 20.6% a year
✗ Profit fell 53.9% in the latest year

Quality vs. Valuation

Company Quality

36/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

68/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

29.7x

0.7Y Median

30.8x

8 monthly readings · mean 29.5x · range 26.0x–34.9x

Sector Median

45.7x

median of 4 sector peers

🟡Currently trading close to its 0.7y median of 30.8x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 35% below the peer median of 45.7x.

vs. its own history

Fair

30.8x median over 8 months · -4%

vs. sector peers

Cheap

45.7x median of 4 peers · -35%

vs. generic bands

Fair

15x–35x

EV/EBITDA

8.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 8327% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 20.3% to 10.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.4% to 13.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 183% over 3 years, from ₹10 Cr to ₹27 Cr.
🔴High leverageFinancial
Debt/Equity of 4.45x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Profit is decliningFinancial
Net profit is down 50% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 35% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 4.45x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 20.3% to 10.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 4%✓ 6.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹99 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 10%✓ 13.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 30.8x✓ 29.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹1,602 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.7x

Fair

Fairly valued against the generic band

P/B Ratio

2.64x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹23.37

Profitable

Profitable on a per-share basis

ROE

10.1%

Moderate

Moderate capital efficiency

ROCE

13.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.45x

High

High leverage

Revenue Growth (YoY)

18.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-53.9%

Falling

Profits are shrinking

Dividend Yield

3.82%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹99 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-0.3%

Weak

Thin margins leave little room for error

Net Margin

2.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

694.2 / 729.9

Bearish alignment (short < long)

RSI (14)

40.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,918 Cr	₹2,515 Cr	₹2,579 Cr	₹2,462 Cr	-5.5%
EBITDA	₹224 Cr	₹188 Cr	₹134 Cr	₹159 Cr	-10.7%
EBITDA Margin	7.7%	7.5%	5.2%	6.5%	—
PAT (Net Profit)	₹123 Cr	₹95 Cr	₹55 Cr	₹62 Cr	-20.6%
EPS	—	₹41.12	₹23.9	₹26.66	—
ROE	20.3%	16.3%	9.1%	10.1%	—
ROCE	26.4%	21.5%	12.1%	13.0%	—
Total Debt	₹10 Cr	₹7 Cr	₹29 Cr	₹27 Cr	+41.5%
Free Cash Flow	₹1 Cr	₹80 Cr	₹107 Cr	₹99 Cr	+338.4%

🔴 Revenue has shrunk at 5.5% a year over 3 years.

🔴 EBITDA has shrunk at 10.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.7% to 6.5% over 3 years (-1.2 pts).

🔴 PAT (Net Profit) has shrunk at 20.6% a year over 3 years.

🔴 ROE has fallen from 20.3% to 10.1% over 3 years (-10.1 pts).

🔴 ROCE has fallen from 26.4% to 13.0% over 3 years (-13.4 pts).

🔴 Total Debt has grown at 41.5% a year over 3 years.

🟢 Free Cash Flow has grown at 338.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,254 Cr

Total Liabilities

₹647 Cr

Cash & Equivalents

₹231 Cr

Operating Cash Flow

₹112 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

7.7%

Insider Holding

75.7%

Corporate Actions

Dividend Rate

₹26.5

Ex-Dividend Date

05 Aug 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive1 mixed1 negative3 general

Why It Might Not Make Sense To Buy Goodyear India Limited (NSE:GOODYEAR) For Its Upcoming Dividend

Simply Wall Street, 01 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Goodyear India Q1 Results: Net profit falls 54% YoY to ₹6.51 crore

scanx.trade, 04 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Goodyear India Stock Prediction 2026: Analyst Target, Forecast and Key Levels

Univest, 22 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Goodyear, CEAT, other tyre stocks rally 7% on softer crude; check top picks

Business Standard, 02 Jul

Goodyear India Share Price Analysis: Stock Performance and Business Overview

Kalkine India, 16 Jun

Goodyear India (GOODYEAR.NS) Slips 0.77% to ₹725.2; Stock Holds Above Key Support - Sentiment Extreme

https://www.siam.in/, 08 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑