Please refer to important disclosures at the end of this report
Goodyear India Limited (GIL) is engaged in the manufacturing and trading
of tires, tubes and flaps. The Company supplies tires to a range of original
equipment manufacturers (OEMs). Goodyear India is a leader in the farm
tyre segment in India with it having strong tie ups with OEMs as well as a
dominant presence in the replacement market. GIL has laid out plans to
significantly grow its presence in the passenger vehicle (PV) segment in India
over the next five years. The company aspires to be one of the top players in
the mid to premium and SUV sub-segments of PVs. It is also evaluating an
entry into newer segments; in order to reach its goal, the company is
weighing organic as well as inorganic growth options. We believe that this
increased focus on growing its presence in the PV segment and entry into
newer segments will provide additional boost to the revenues. The company
has a Return on Equity (RoE) of 16.40% of TTM earnings. It has reported
bottom line growth of 18% over last 5 years and operating margins has also
improved from 7.86%in in FY12 to 14.86% in FY17.GIL’s raw material cost
to revenue has declined from 73.34%in FY12 to 62.12% in FY17 and cash
flows has improved from 26.10cr in FY12 to 167.77cr in FY17.The
Company is virtually debt free and has been maintaining a healthy dividend
payout of 22.84% .Hence Buy.
CMP `1076
Reuters Code
BSE Sensex
Face Value (`)
Auto Tyres
Market Cap (` cr)
52 Week High / Low
Avg. Daily Volume
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Goodyear India Ltd
Others | Auto Tyres
Jan 2, 2018
Goodyear India | Auto Tyres
June 5, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Goodyear India
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)