Stock Performance and Market Context
On the day the new low was recorded, Goodyear India’s share price underperformed its sector by 1.37%, continuing a losing streak that has seen a cumulative decline of 2.77% over the last four trading days. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling persistent bearish momentum. This contrasts with the broader market, where the Sensex opened 119.19 points higher and was trading at 82,516.10, up 0.3% on the day. The Sensex remains 4.41% shy of its 52-week high of 86,159.02, supported by gains in mega-cap stocks.
Over the past year, Goodyear India’s stock has delivered a negative return of 16.76%, markedly underperforming the Sensex, which posted a 7.50% gain in the same period. The stock’s 52-week high was Rs.1,071, highlighting the extent of the recent decline.
Financial Metrics and Valuation Concerns
Several financial indicators underpin the current market sentiment towards Goodyear India. The company’s operating profit has contracted at an annualised rate of 7.89% over the last five years, reflecting subdued growth in core earnings. The latest half-year results reveal a 33.33% decline in profit after tax (PAT), which stood at Rs.27.18 crores. Return on capital employed (ROCE) for the half-year is at a low 10.28%, while the dividend per share (DPS) has decreased to Rs.23.90 annually.
Despite these challenges, the company maintains a relatively high return on equity (ROE) of 16.15%, indicating efficient use of shareholder funds. However, the stock’s valuation appears stretched, with a price-to-book value of 3.2, which is considered expensive relative to its peers’ historical averages. The current ROE of 7.2 and the premium valuation contribute to concerns about the stock’s pricing in relation to its earnings performance.
Shareholding and Capital Structure
Goodyear India benefits from a low average debt-to-equity ratio of zero, reflecting a conservative capital structure with minimal leverage. The majority shareholding is held by promoters, providing a stable ownership base. The company also offers a relatively high dividend yield of 3.03% at the current price, which may be of interest to income-focused investors despite the stock’s price weakness.
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Recent Rating and Market Sentiment
Reflecting the stock’s performance and financial metrics, Goodyear India’s Mojo Score stands at 28.0, categorised as a Strong Sell. This represents a downgrade from its previous Sell rating on 16 Dec 2025. The company’s market capitalisation grade is 3, indicating a mid-tier valuation relative to the broader market. The downgrade underscores the challenges faced by the company in delivering consistent growth and profitability.
Comparative Performance and Sector Dynamics
Within the Tyres & Rubber Products sector, Goodyear India’s performance has lagged behind peers and broader indices. The stock’s negative returns over the last year and its underperformance relative to the BSE500 index over one, three years, and three months highlight persistent headwinds. The sector itself has seen mixed trends, with some companies benefiting from cyclical demand and raw material price stabilisation, but Goodyear India has not mirrored these gains.
Summary of Key Financial Indicators
To summarise, Goodyear India’s key financial indicators as of early 2026 are as follows:
- New 52-week low price: Rs.772
- One-year stock return: -16.76%
- Operating profit CAGR (5 years): -7.89%
- PAT (latest six months): Rs.27.18 crores, down 33.33%
- ROCE (half-year): 10.28%
- ROE: 16.15%
- Dividend yield: 3.03%
- Price-to-book value: 3.2
- Debt-to-equity ratio: 0
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Conclusion
Goodyear India Ltd’s stock reaching a 52-week low of Rs.772 reflects a continuation of a multi-faceted decline driven by subdued earnings growth, declining profitability, and valuation concerns. Despite a strong return on equity and a conservative capital structure, the stock’s performance has lagged the broader market and its sector peers. The downgrade to a Strong Sell rating and the stock’s trading below all major moving averages underscore the challenges the company faces in regaining momentum.
While the company maintains a stable dividend yield and promoter backing, the prevailing market conditions and financial metrics have contributed to the current valuation and price levels. Investors and market participants will continue to monitor the stock’s trajectory in the context of sector trends and broader economic factors.
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