Goodyear India
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Goodyear India's management has expressed optimism regarding future growth, particularly in the agricultural sector, driven by increasing mechanization and government support for rural development. This aligns with Vista's forecast of accelerating revenue growth, which is expected to surpass historical trends, supported by stable profit margins. However, the company must navigate challenges such as energy price volatility and inflationary pressures that could impact profitability. The tyre industry is currently expanding, with improving pricing power and strong export growth, which bodes well for Goodyear's competitive position. Nevertheless, the potential moderation in industry growth and geopolitical uncertainties remain watchpoints. Overall, Goodyear India's strategic focus on premium offerings and electric tractor solutions positions it well for long-term growth, although external cost pressures could temper margins. Vista's valuation remains fair, with a target price reflecting a slight downside, indicating a cautious stance amidst these dynamics. Over the next 12-24 months, the key opportunities lie in leveraging export growth and premium product demand, while headwinds include energy price fluctuations and inflationary risks that could challenge margin stability
Why We Like This Stock
- Strategic focus on premium offerings and electric tractor solutions aligns with industry trends
- Strong government support for rural development enhances growth prospects in the agricultural sector
- Improving pricing power within the tyre industry supports revenue growth
Things To Watch Out For
- Energy price volatility poses a significant risk to profitability
- Potential moderation in industry growth could impact revenue expectations
- Inflationary pressures may challenge margin stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,552 | 2,608 | 2,476 | 2,784 | 2,828 |
| Profit Before Tax (Cr.) | 128 | 75 | 105 | 54 | 71 |
| PBT Margin | 5.0% | 2.9% | 423.1% | 1.9% | 2.5% |
| Net Profit (Cr.) | 93 | 58 | 71 | 36 | 47 |
| Earnings Per Share | 40.1 | 25.2 | 30.7 | 15.5 | 20.4 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Goodyear India Limited manufactures and sells tyres, tubes, and flaps under the Goodyear brand in India and internationally. It offers automotive tyres, such as farm, commercial truck tyres, and passenger car tyres; and other products, including tubes and flaps. The company serves original equipment manufacturers for tractors, passenger car owners, fleet operators, the export market, and ancillary buyers for tubes and flaps. Goodyear India Limited was founded in 1898 and is based in Gurugram, India. Goodyear India Limited operates as a subsidiary of Goodyear Orient Company (Private) Limited.