Buy Goodyear India, target price Rs 1130: ICICI Direct

ICICI Direct has buy call on Goodyear India with a target price of Rs 1130. The current market price of Goodyear India Ltd. is Rs 927.65.

Goodyear India Ltd., incorporated in the year 1961, is a Small Cap company (having a market cap of Rs 2137.23 Crore) operating in Tyres sector.

Financials
For the quarter ended 31-12-2020, the company reported a Standalone Total Income of Rs 519.79 Crore, up 6.81 % from last quarter Total Income of Rs 486.63 Crore and up 19.25 % from last year same quarter Total Income of Rs 435.87 Crore. Company reported net profit after tax of Rs 48.97 Crore in latest quarter.


Investment Rationale
The brokerage expects 12.1% PAT CAGR in FY21E-23E. Healthy demand prospects across segments along with MNC parentage and strong B/S and return ratio profile (FY20; zero debt company with Rs 546 crore cash on books & >20% RoIC) continue to provide valuation comfort. It maintains BUY, valuing it at Rs 1,130, 16x P/E on FY23E EPS of Rs 70.7 (previous target price Rs 910).