1. At a Glance
Goodyear India Ltd is that classic Indian market character: solid pedigree, boring balance sheet, generous dividends… and zero excitement. Market cap stands at ₹1,946 crore, the stock is chilling at ₹844, down ~14% in both 3-month and 6-month periods, while the broader tyre sector is busy doing burnouts.
Q3 FY26 numbers dropped a mild surprise: revenue of ₹607 crore (-3.9% QoQ) but PAT jumped 160% QoQ to ₹24.6 crore. Suddenly profits woke up, stretched, and said, “bhai, main zinda hoon.”
Despite that, valuation isn’t exactly cheap: P/E of ~34x, EV/EBITDA of 13.6x, ROCE 13%, ROE 9.3%. Dividend yield? A juicy 2.83%, with a payout ratio that would make PSU companies blush.
So what is Goodyear India today?
A steady farm-tyre cash cow, low debt (₹28 crore only), predictable business, but struggling to convince Mr Market that it deserves a premium multiple. Curious? Good. Let’s peel the rubber layer by layer.
2. Introduction
Goodyear India is not a startup story, not a turnaround fantasy, and definitely not a “next multibagger in 6 months” WhatsApp forward. This is a slow, grinding, tractor-tyre-powered business that has been around long before stock market influencers discovered “EV theme”.
The company manufactures and sells farm tyres and commercial truck tyres, and markets passenger vehicle tyres, along with tubes and flaps. It is a leader in the Indian farm tyre segment, supplying to tractor giants like Mahindra, Escorts, Tata Motors, etc.
And yes, 100% of revenue is domestic. No forex thrills. No export hero stories. Pure desi soil.
Over the last decade, Goodyear India has behaved like that one disciplined student who always passes but never tops the class. Sales CAGR of ~5–8%, profits declining over 5 years, margins under
pressure, yet the company keeps throwing dividends at shareholders like it’s apologising for being boring.
So the real question:
Is Goodyear India a hidden value play… or just a well-behaved uncle stock living off dividends?
3. Business Model – WTF Do They Even Do?
Let’s simplify.
Goodyear India makes tyres, primarily for tractors and farm equipment. That’s the bread, butter, and buttermilk of the company. Passenger car tyres exist, but they are not the main hero yet.
Product Mix FY23
- Tyres: ~95% of revenue
- Tubes & flaps: ~5%
- Geography: 100% India
Farm tyres are not flashy, but they are stable. Indian agriculture doesn’t shut down because of GDP cycles or global recessions. Farmers still need tractors, tractors still need tyres, and Goodyear quietly keeps invoicing.
Manufacturing happens at two plants:
- Ballabgarh, Haryana
- Aurangabad, Maharashtra
Distribution is strong: PAN-India network, 9 regional sales offices, and presence in 10+ countries (though revenue remains domestic).
Recently, management tried to spice things up by launching premium passenger and SUV tyres:
- Assurance ComfortTred
- EfficientGrip Performance SUV
Luxury segment focus sounds good on investor decks. The real question is: can Goodyear compete with Apollo, CEAT, and MRF in branding and margins? Jury is
