Goodyear India Ltd Stock Falls to 52-Week Low of Rs.769.65

Stock Price Movement and Market Context

On 2 Feb 2026, Goodyear India Ltd’s share price touched an intraday low of Rs.769.65, representing a 2.29% decline during the trading session. This new low comes amid a day where the broader Sensex index recovered from an initial negative opening to close 0.14% higher at 80,832.44 points. While the Sensex showed resilience, led by mega-cap stocks, Goodyear India’s shares moved in line with its sector but remained firmly below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the stock’s sustained weakness over multiple time horizons.

Despite the broader market’s modest gains, Goodyear India’s stock has underperformed significantly over the past year. The company’s share price has declined by 19.74%, contrasting with the Sensex’s positive 4.29% return over the same period. The stock’s 52-week high was Rs.1,071, indicating a substantial drop of approximately 28% from that peak.

Financial Performance and Valuation Metrics

Goodyear India’s financial results have contributed to the subdued investor sentiment. The company reported a negative growth in profit after tax (PAT) over the latest six-month period, with PAT at Rs.27.18 crores declining by 33.33%. Operating profit has contracted at an annualised rate of 7.89% over the last five years, signalling challenges in sustaining growth momentum.

Return on capital employed (ROCE) for the half-year period stands at a low 10.28%, while return on equity (ROE) is recorded at 7.2%. These returns are modest relative to the company’s valuation, which is considered expensive with a price-to-book value of 3.2. This premium valuation is above the average historical valuations of its peers in the Tyres & Rubber Products sector.

Dividend yield remains relatively attractive at 3.03%, with the annual dividend per share (DPS) at Rs.23.90, though this is noted as the lowest in recent periods. The company’s capital structure is conservative, maintaining a low average debt-to-equity ratio of zero, which reflects minimal leverage.

Long-Term and Recent Performance Trends

Over the last three years, Goodyear India has consistently underperformed the BSE500 index, as well as its own sector benchmarks. The stock’s negative return of 19.74% in the past year is compounded by a 28.9% decline in profits over the same period, highlighting a disconnect between earnings performance and market valuation.

The company’s Mojo Score currently stands at 28.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 16 Dec 2025. This grading reflects the deteriorated financial health and valuation concerns. The market capitalisation grade is rated at 3, indicating a mid-tier market cap within its sector.

Sector and Market Comparison

Within the Tyres & Rubber Products industry, Goodyear India’s valuation and performance metrics lag behind many peers. While the sector has seen some stocks reach new 52-week highs, such as the NIFTY PSU index, Goodyear India’s share price remains subdued. The stock’s premium valuation relative to peers, despite weaker profitability and returns, is a notable factor in its current market standing.

Corporate Governance and Shareholding

The company benefits from high management efficiency, with a reported ROE of 16.15% in certain assessments, indicating effective utilisation of equity capital in some areas. Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction. The low debt levels further suggest a cautious financial approach, limiting financial risk exposure.

Summary of Key Metrics

To summarise, Goodyear India Ltd’s stock has reached a new 52-week low of Rs.769.65, reflecting ongoing challenges in growth and profitability. The company’s operating profit has declined at an annualised rate of 7.89% over five years, while recent PAT figures have fallen by 33.33%. Valuation remains elevated with a price-to-book ratio of 3.2, despite returns on equity and capital employed being modest. The stock’s dividend yield of 3.03% offers some income appeal, but overall returns have been negative over the past year and longer term.

Trading below all major moving averages, the stock’s technical indicators align with its fundamental performance, underscoring the subdued market sentiment. While the company maintains a strong promoter presence and low leverage, these factors have not translated into positive price momentum in recent months.

Market Environment

In contrast to Goodyear India’s performance, the broader market has shown resilience with the Sensex recovering from early losses to close marginally higher. Mega-cap stocks have led the gains, while indices such as NIFTY PSU have reached new highs. This divergence highlights the selective nature of market strength and the challenges faced by certain mid-cap and sector-specific stocks.

Conclusion

Goodyear India Ltd’s stock price decline to Rs.769.65 marks a significant point in its recent trading history, reflecting a combination of subdued earnings growth, valuation concerns, and relative underperformance within its sector and the broader market. The company’s financial metrics and market positioning continue to be closely monitored by market participants as it navigates this phase.

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