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Tuesday, September 29, 2009

Goodyear India - A Good Mid Cap Stock To Buy

A 74% subsidiary of Goodyear Tire & Rubber Co. US, Goodyear India is among the best-known tyre brands. It has a very wide product portfolio including tyres for passenger cars, commercial vehicles, trucks, buses, tractors and earthmovers.

The tyre sector has been doing extremely well for quite some time now with lower input costs fuelling bottomline. This, in turn, has helped the component manufacturers to improve their performance on the back of higher demand.One problem with Goodyear is its margin. Operating margin and net margin over the years has been extreamly low at sub single digit respectively. This leaves it vulnerable to even a slight fall in revenues or a rise in cost.

Market Cap 420.04
EPS (TTM) 19.48
P/E 9.35
P/C 7.48
Book Value 68.20
Price/Book 2.67
Div(%) 60.00
Div Yield(%) 3.29
Market Lot 1.00
Face Value 10.00
Industry P/E 16.96

It has been expanding years after years to cope with the higher demand. That apart, it also plans to set up hundreds of exclusive outlets in the next few years. Valuations look attractive and with the tyre sector having a dream run on the bourses, goodyear may just be one of the best sectorial performer in the days to come.A hot stock to buy at dips.

1 comment:

  1. giv me sanraa report can i buy this stock....and why...

    ReplyDelete

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