Goodyear India Ltd Stock Hits 52-Week Low at Rs.800

Stock Price Movement and Market Context

On the day the new low was recorded, Goodyear India’s shares fell by 0.75%, despite outperforming its sector by 0.54%. The stock has been on a losing streak for two consecutive sessions, registering a cumulative decline of 2.04% during this period. Trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — the stock’s technical indicators reflect sustained bearish momentum.

Meanwhile, the broader market, represented by the Sensex, experienced a negative session, closing down 559.90 points or 0.72% at 82,647.48. The Sensex remains 4.25% shy of its 52-week high of 86,159.02 but has been on a three-week losing streak, shedding 3.63% in that timeframe. Notably, the Sensex trades below its 50-day moving average, although the 50DMA remains above the 200DMA, signalling mixed medium-term market conditions.

Long-Term Performance and Valuation Metrics

Over the last year, Goodyear India’s stock has declined by 14.83%, contrasting sharply with the Sensex’s positive 7.20% return. The stock’s 52-week high was Rs.1,071, indicating a substantial drop of approximately 25.3% from that peak to the current low. This underperformance extends beyond the last year, with the company consistently lagging behind the BSE500 index in each of the past three annual periods.

Valuation metrics further highlight the stock’s premium pricing despite its subdued performance. The company’s price-to-book value stands at 3.3, which is considered expensive relative to its peers’ historical averages. Return on equity (ROE) is modest at 7.2%, while return on capital employed (ROCE) for the half-year period is low at 10.28%. These figures suggest limited capital efficiency in generating shareholder returns.

Financial Performance and Profitability Trends

Goodyear India’s operating profit has contracted at an annualised rate of 7.89% over the past five years, reflecting challenges in sustaining growth. The company reported negative profit after tax (PAT) growth of 33.33% in the latest six-month period, with PAT standing at Rs.27.18 crores. Dividend per share (DPS) is also at a low level of Rs.23.90 annually, indicating restrained shareholder returns.

Despite these headwinds, the company maintains a strong management efficiency profile, evidenced by a higher ROE of 16.15% in certain assessments. Additionally, Goodyear India benefits from a conservative capital structure, with an average debt-to-equity ratio of zero, underscoring a debt-free balance sheet. The promoter group holds the majority stake, providing stable ownership.

Comparative Performance and Market Position

In comparison to its peers within the tyres and rubber products sector, Goodyear India’s stock has underperformed consistently. The company’s Mojo Score stands at 28.0, with a Mojo Grade of Strong Sell as of 16 Dec 2025, downgraded from a Sell rating. The market capitalisation grade is rated at 3, reflecting its mid-tier size within the sector.

Over the past year, the stock’s profits have declined by 28.9%, further emphasising the challenges faced in profitability. This decline has contributed to the stock’s subdued returns and valuation pressures relative to sector averages.

Summary of Key Metrics

To summarise, Goodyear India Ltd’s stock has reached a 52-week low of Rs.800, reflecting a combination of subdued financial performance, valuation concerns, and consistent underperformance relative to the benchmark indices and sector peers. The stock’s technical indicators remain weak, with prices trading below all major moving averages. Profitability metrics such as ROCE and PAT growth have deteriorated, while the company’s premium valuation multiples suggest a disconnect between price and earnings fundamentals.

Nevertheless, the company’s strong management efficiency and debt-free status provide some stability amid the challenging environment. The promoter holding remains a significant factor in ownership structure, potentially influencing strategic decisions going forward.

Market Outlook and Broader Context

The broader market environment has been mixed, with the Sensex experiencing a recent decline but still maintaining proximity to its 52-week high. Sectoral dynamics within tyres and rubber products continue to evolve, with competitive pressures and demand fluctuations impacting company performances unevenly. Goodyear India’s current position at a 52-week low highlights the need for close monitoring of its financial and operational developments in the coming quarters.

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