Goodyear India Ltd is Rated Hold by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for Goodyear India Ltd indicates a neutral stance on the stock, suggesting that investors should neither aggressively buy nor sell at this juncture. This rating reflects a balance between the company’s strengths and challenges, signalling that while the stock has potential, it also carries certain risks that warrant caution. The 'Hold' grade is supported by a Mojo Score of 50.0, which represents a moderate outlook based on a comprehensive evaluation of multiple parameters.

Quality Assessment

As of 13 February 2026, Goodyear India Ltd demonstrates a solid quality profile. The company boasts a high return on equity (ROE) of 16.15%, indicating efficient management and effective utilisation of shareholder capital. Additionally, the firm maintains a low debt-to-equity ratio averaging zero, underscoring a conservative capital structure with minimal financial leverage. These factors contribute positively to the company’s quality grade, which is currently rated as 'good'.

However, the company’s long-term growth trajectory presents concerns. Operating profit has declined at an annualised rate of 11.86% over the past five years, signalling challenges in sustaining profitability growth. Despite this, recent quarterly figures show some resilience, with the highest quarterly PBDIT recorded at ₹42.17 crores and an operating profit margin of 6.95%, suggesting pockets of operational strength.

Valuation Considerations

Goodyear India Ltd is currently considered 'expensive' in terms of valuation. The stock trades at a price-to-book (P/B) ratio of 3.4, which is a premium compared to its peers and historical averages. This elevated valuation reflects investor expectations of future growth and profitability, despite the company’s recent underperformance relative to the broader market.

As of 13 February 2026, the company’s price-earnings-to-growth (PEG) ratio stands at 1.5, indicating that the stock’s price growth is somewhat aligned with its earnings growth, though not at a bargain level. Over the past year, the stock has delivered a return of -7.78%, underperforming the BSE500 benchmark consistently over the last three years. Meanwhile, profits have risen by 23.1% in the same period, highlighting a disconnect between earnings growth and stock price performance.

Financial Trend Analysis

The financial trend for Goodyear India Ltd is assessed as 'positive' based on recent data. Despite the negative long-term growth in operating profit, the company has shown improvement in quarterly profitability metrics. The highest quarterly profit before tax (excluding other income) reached ₹28.74 crores, reflecting operational improvements. This positive trend suggests that the company may be stabilising its financial performance after a period of decline.

Nevertheless, investors should note the inconsistency in returns, with the stock posting a 6-month decline of 13.60% and a 3-month drop of 9.63%. The year-to-date return is marginally negative at -0.19%, indicating subdued market sentiment. These mixed signals warrant a cautious approach, consistent with the 'Hold' rating.

Technical Outlook

The technical grade for Goodyear India Ltd is mildly bearish. Recent price movements show a slight downward trend, with a one-day decline of 0.21% and a modest one-week gain of 0.39%. The stock’s inability to sustain upward momentum over the short term reflects some selling pressure and market hesitation. This technical backdrop supports the neutral stance of the 'Hold' rating, suggesting that investors should monitor price action closely before making significant moves.

Summary for Investors

In summary, Goodyear India Ltd’s 'Hold' rating by MarketsMOJO reflects a balanced view of the company’s current situation as of 13 February 2026. The stock exhibits strong management efficiency and a conservative capital structure, but faces challenges in long-term growth and valuation premium. Financial trends show signs of improvement, while technical indicators suggest caution. For investors, this rating implies that the stock may be suitable for those seeking stability without aggressive growth expectations, and that careful monitoring of future developments is advisable.

Company Profile and Market Context

Goodyear India Ltd operates within the Tyres & Rubber Products sector and is classified as a small-cap company. The majority ownership lies with promoters, which often provides stability in governance and strategic direction. Despite this, the company has struggled to keep pace with broader market indices, underperforming the BSE500 benchmark consistently over the past three years.

The stock’s recent performance metrics as of 13 February 2026 show a mixed picture: a modest one-month gain of 2.55% contrasts with declines over three and six months of 9.63% and 13.60% respectively. The one-year return of -7.78% further highlights the challenges faced by the company in delivering shareholder value in the near term.

Investment Implications

For investors, the 'Hold' rating suggests a wait-and-watch approach. The company’s strong management efficiency and low leverage are positives, but the expensive valuation and inconsistent financial growth temper enthusiasm. The mildly bearish technical outlook reinforces the need for caution, especially for those with a lower risk tolerance.

Investors seeking exposure to the tyre sector may consider Goodyear India Ltd as part of a diversified portfolio, but should remain vigilant to changes in operational performance and market conditions. Monitoring quarterly earnings and valuation shifts will be key to reassessing the stock’s potential in the coming months.

Conclusion

In conclusion, Goodyear India Ltd’s current 'Hold' rating by MarketsMOJO, updated on 10 February 2026, reflects a nuanced view of the company’s prospects as of 13 February 2026. The stock’s quality, valuation, financial trends, and technical signals collectively suggest a cautious stance, advising investors to maintain positions without aggressive accumulation or liquidation. This balanced approach aligns with the company’s current fundamentals and market environment.

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