Goodyear India - A Good Bet On Rural Prosperity: HDFC Securities

The company's excellent balance sheet strength (zero debt company) and its MNC parentage drives confidence on the company.

<div class="paragraphs"><p>Goodyear tyres. (Source Company's official fb page).&nbsp;</p></div>
Goodyear tyres. (Source Company's official fb page). 

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

HDFC Securities Retail Research

Goodyear India Ltd. is a cash rich, debt-free company and has reported good financial numbers over past few years. The last few years have witnessed strong tractor sales in the domestic market.

Goodyear has recently witnessed market share gains due to rapid channel expansion and extraction, building synergies in the front end, innovation driving new product pipeline, leveraging the strength of Goodyear brand and building a best in-class team.

We have tweaked the FY24E estimates, introduced FY25E estimates and and upped the price target.

We expect Goodyear’s revenue/Ebitda/profit after tax to grow at 12/23/26% compound annual growth rate over FY23-FY25E, led by increased sales volume and moderation in material prices.

We expect return on net worth to increase from ~19% in FY23 to ~27% by FY25E.

We believe investors can buy the stock in the band of Rs 1370-1400 and add on dips in Rs 1230-1260 band (14.75 times FY25E earnings per share) for a base case fair value of Rs 1519 (18 times FY25E EPS) and bull case fair value of Rs 1624 (19.25 times FY25E EPS) over the next two-three quarters.

Click on the attachment to read the full report:

HDFC Securities Retail Research Goodyear - Stock Update.pdf
Ashok Leyland Q1 Results Review - Near Term Positives Factored In, Maintain 'Reduce': Dolat Capital


This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.