Goodyear India Ltd Falls 3.28%: Technical Weakness and Valuation Concerns Weigh

16 February 2026: Opening the Week with Technical Weakness

Goodyear India began the week on a subdued note, closing at Rs.823.35, down 1.58% from the previous Friday’s close of Rs.836.60. This decline came despite the Sensex rallying 0.70% to 36,787.89, highlighting the stock’s early divergence from broader market optimism. The price action reflected growing bearish momentum, with the stock trading closer to its 52-week low of Rs.764.00 than its high of Rs.1,071.00. Technical indicators such as the Moving Average Convergence Divergence (MACD) and Bollinger Bands were signalling increased selling pressure, setting the tone for the week ahead.

17 February 2026: Downgrade to Sell Amid Weak Technicals and Valuation Concerns

The most significant event of the week occurred on 17 February, when MarketsMOJO downgraded Goodyear India Ltd from a Hold to a Sell rating. This decision was driven by deteriorating technical indicators and expensive valuation metrics. The stock closed at Rs.829.80, up 0.78% intraday but still reflecting underlying volatility. The downgrade cited a Mojo Score of 44.0, signalling caution due to bearish MACD readings on weekly and monthly charts, bearish Bollinger Bands, and a negative alignment of daily moving averages.

Valuation concerns were also prominent, with the company’s Price to Book ratio at 3.3, considered high relative to sector peers, especially given a modest return on equity (ROE) of 9.9%. Despite a recent quarterly PBDIT of Rs.42.17 crores and an operating margin of 6.95%, the long-term operating profit trend remains negative, declining at an annualised rate of -11.86% over five years. This combination of weak technicals and stretched valuation contributed to the downgrade and heightened investor caution.

18 February 2026: Continued Price Pressure Amid Mixed Technical Signals

The stock closed at Rs.824.75, down 0.61%, as bearish momentum persisted. The Sensex continued its upward trajectory, gaining 0.43% to 37,062.35, further emphasising Goodyear India’s relative weakness. Technical indicators remained predominantly negative, with the MACD confirming downward momentum and Bollinger Bands on the weekly chart signalling selling pressure. However, some longer-term indicators such as the Know Sure Thing (KST) and Dow Theory presented mixed signals, with mildly bullish readings on monthly timeframes, suggesting potential but uncertain support in the medium term.

19 February 2026: Sharp Decline Reflects Bearish Momentum

On 19 February, the stock experienced its steepest daily fall of the week, closing at Rs.808.45, down 1.98%. This decline coincided with a significant Sensex drop of 1.45% to 36,523.88, reflecting broader market volatility. The stock’s proximity to its 52-week low intensified concerns, as technical indicators such as daily moving averages and Bollinger Bands reinforced the bearish outlook. The lack of clear oversold signals from the Relative Strength Index (RSI) suggested further downside risk remained before a potential technical rebound could materialise.

20 February 2026: Slight Recovery but Weekly Losses Persist

The week closed with a marginal gain of 0.09% to Rs.809.15, while the Sensex rebounded 0.41% to 36,674.32. Despite this slight uptick, the stock ended the week down 3.28%, underperforming the benchmark index by 3.67 percentage points. The technical landscape remained cautious, with bearish MACD and moving averages dominating the short-term outlook. Investors were advised to monitor key support levels near Rs.760-770, close to the 52-week low, for signs of stabilisation or further declines.

Daily Price Comparison: Goodyear India Ltd vs Sensex

Key Takeaways

Negative Technical Momentum: The week was dominated by a clear shift to bearish technical indicators, including a bearish MACD on weekly and monthly charts, bearish Bollinger Bands, and negative daily moving averages. These signals suggest sustained downward pressure on the stock price in the near term.

Downgrade to Sell Rating: The MarketsMOJO downgrade from Hold to Sell, with a Mojo Score of 44.0, reflects concerns over weak technicals, expensive valuation, and subdued long-term financial trends despite recent quarterly gains.

Valuation Concerns: The stock trades at a high Price to Book ratio of 3.3 and a PEG ratio of 1.5, which appear unjustified given the company’s modest ROE of 9.9% and negative five-year operating profit trend of -11.86% annualised.

Underperformance vs Sensex: Goodyear India’s 3.28% weekly decline contrasts with the Sensex’s 0.39% gain, continuing a pattern of underperformance over multiple time horizons, including one year (-6.12% vs Sensex +9.66%) and three years (-21.36% vs Sensex +35.81%).

Financial Strength Amid Challenges: Despite the negative price action, the company maintains a strong management efficiency with a recent ROE of 16.15% and low debt levels, which may provide some cushion against market volatility.

Conclusion

Goodyear India Ltd’s week was marked by a pronounced bearish technical shift and a significant downgrade to a Sell rating, reflecting growing investor caution. The stock’s 3.28% weekly decline amid a rising Sensex highlights its relative weakness and ongoing challenges in valuation and long-term growth. While some longer-term technical indicators suggest mild bullishness, the prevailing momentum remains negative, with key support levels near Rs.760-770 critical to watch in the coming weeks. Investors should remain vigilant and monitor technical signals closely before considering new positions, as downside risks persist in the near term.

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