Please refer to important disclosures at the end of this report
Goodyear India Limited (GIL) is engaged in the manufacturing and trading o
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 gro
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 21.14% of FY16
earnings. The Company is virtually debt free and has been maintaining a health
dividend payout of 22.46% (Div. Yield – 1.63%). Hence Buy.
CMP `738
Stock Info
Beta 0.6
Bloomberg Code
Shareholding Pattern (%)
Promoters 74.0
MF / Banks / Indian Fls 7.9
FII / NRIs / OCBs 0.0
Indian Public / Others 18.1
Abs. (%) 3m 1yr 3yr
Sensex 4.1 7.7 41.8
Goodyear India 38.3 28.9 126.7
Nifty 8,738
Reuters Code GDYR.BO
Face Value (
BSE Sensex 28,243
52 Week High / Low 747/443
Avg. Daily Volume 11,187
Auto Ancillary
Market Cap (
cr) 1,701
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Goodyear India
Others | Tyre
October 4, 2016
Goodyear India | Tyre
October 4, 2016
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website:
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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%)