4QFY2016 Result Update | Tyres
February 9, 2016
Goodyear India
BUY
CMP
`487
Performance Highlights
Target Price
`582
Y/E December (` cr)
4QFY2016
4QCY2014*
% chg (yoy)
3QFY2016
% chg (qoq)
Investment Period
12 Months
Net sales
366
360
1.7
382
(4.1)
EBITDA
39
30
27.7
46
(15.5)
EBITDA margin (%)
10.5
8.4
214bp
11.9
(142)bp
Stock Info
Adjusted PAT
26
19
37.5
29
(10.1)
Sector
Tyres
Source: Company, Angel Research; Note: *reporting changed from CY to FY starting Jan 2015
Market Cap (` cr)
1,124
Note- Goodyear India is shifting from calendar year reporting to financial year
Net Debt
(365)
reporting. Hence FY2016 will consist of five quarters.
Beta
0.8
52 Week High / Low
674 / 470
For 4QFY2016, Goodyear India (GIL)’s numbers have come in lower than our
Avg. Daily Volume
14,951
estimates. The top-line reported a marginal growth of 1.7% yoy to `366cr.
Face Value (`)
10
However, the company performed well on the operational front, reporting an
EBITDA margin expansion of 214bp yoy to 10.5% while its EBITDA grew by
BSE Sensex
24,021
27.7% yoy to `39cr. On the back of lower operating expenses and higher other
Nifty
7,298
income, which grew by 43.7% yoy to `10cr, the net profit grew by 37.5% yoy to
Reuters Code
GDYR.BO
`26cr.
Bloomberg Code
GDYR IN
Expansion drive to lead to recovery in top-line: GIL has laid out plans to
significantly grow its presence in the passenger car segment in India over the next
Shareholding Pattern (%)
five years. The company aspires to be one of the top players in the mid to
premium and SUV segments of passenger cars. It is also evaluating an entry into
Promoters
74.0
newer segments; in order to reach its goal, the company is weighing organic as
MF / Banks / Indian Fls
7.6
well as inorganic growth options to expand in India. We believe that this
FII / NRIs / OCBs
0.9
increased focus on growing its presence in the passenger car segment as well
Indian Public / Others
17.5
entry into newer segments will lower the impact of poor performance of the
tractor industry.
Strong balance sheet with high RoIC: GIL is a debt free-cash rich company with
Abs. (%)
3m 1yr 3yr
RoIC estimated at ~68% for FY2017. The company’s cash and equivalents are
expected to be at `515cr by FY2017-end, which amount to ~46% of the current
Sensex
(8.0)
(14.9)
23.4
market cap. More importantly, GIL is one of the cheapest MNCs available to
GOODYEAR
(13.5)
(14.5)
56.2
invest in, in the similar market cap range.
Outlook and valuation: We expect the company’s top-line to be at `1,800cr and
3-year Daily Price Chart
`1,600cr in FY2016E and FY2017E respectively. Raw material cost is expected to
remain stable over FY2016E-17E resulting in EBITDA margin of 11.7% in
800
700
FY2016E and 11.5% in FY2017E. Consequently, we estimate the net profit to be
600
at `122cr in FY2017E. At the current market price, the stock is trading at a PE of
500
9.2x its FY2017E earnings. On a TTM basis, GIL is one of the cheapest MNCs
400
available as it trades at a PE of 11.0x while other MNCs (having market cap in
300
the range of `1,000cr-`5,000cr) trade above the 20.0x mark (with a median of
200
27.7x). We maintain our Buy rating on the stock and assign a target price of `582
100
based on a target PE of 11.0x for FY2017E.
-
Key Financials
Y/E Mar (` cr)
CY2012
CY2013
CY2014
FY2016E*
FY2017E
Net Sales
1,481
1,569
1,579
1,800
1,600
Source: Company, Angel Research
% chg
(2.1)
5.9
0.7
14.0
(11.1)
Net Profit
57
94
101
135
122
% chg
(13.4)
66.3
7.6
33.8
(9.9)
EBITDA (%)
6.1
8.9
9.7
11.7
11.5
EPS (`)
24.5
40.8
43.9
58.7
52.9
P/E (x)
19.9
12.0
11.1
8.3
9.2
P/BV (x)
3.2
2.7
2.3
1.9
1.6
RoE (%)
16.9
24.2
22.0
24.6
18.7
RoIC (%)
65.1
95.4
94.6
89.9
68.0
Milan Desai
EV/Sales (x)
0.6
0.5
0.5
0.4
0.4
+91- 22- 4000 3600 Ext: 6846
EV/EBITDA (x)
9.8
5.8
4.9
3.4
3.3
Source: Company, Angel Research; Note: *reporting changed from CY to FY starting January 2015
Please refer to important disclosures at the end of this report
1
Goodyear | 4QFY2016 Result Update
Exhibit 1: 4QFY2016 performance
Y/E December (` cr)
4QFY16
4QCY14*
yoy chg (%)
3QFY16
qoq chg (%)
CY2015*
CY2014*
% chg
Net Sales
366
360
1.7
382
(4.1)
1,455
1,579
(7.8)
Net raw material
243
239
1.4
242
0.3
935
1,094
(14.6)
(% of Sales)
66.3
66.5
(20)bp
63.4
289bp
64.2
69.3
(508)bp
Staff Costs
29
31
(5.4)
30
(1.5)
111
99
12.3
(% of Sales)
7.9
8.5
(59)bp
7.7
20bp
7.6
6.3
137bp
Other Expenses
56
60
(6.6)
64
(13.6)
240
232
3.3
(% of Sales)
15.2
16.6
(135)bp
16.9
(167)bp
16.5
14.7
177bp
Total Expenditure
328
330
(0.7)
336
(2.5)
1,286
1,426
(9.8)
EBITDA
39
30
27.7
46
(15.5)
170
154
10.5
EBITDA margin (%)
10.5
8.4
214bp
11.9
(142)bp
11.7
9.7
194bp
Interest
1
1
(5.8)
1
(5.8)
3
3
(23.6)
Depreciation
8
8
(0.1)
8
(1.3)
32
29
13.2
Other Income
10
7
43.7
7.3
36.8
29
32
(7.5)
PBT
40
29
39.8
44
(9.5)
164
154
12.6
(% of Sales)
11.0
8.0
11.6
11.3
9.7
Tax
14
10
15
57
52
(% of PBT)
35.0
34.0
34.6
34.8
34.0
Reported PAT
26
19
37.5
29
(10.1)
107
101
5.8
PATM
7.1
5.3
7.6
7.4
6.4
Equity capital (cr)
23
23
23
23
23
EPS (`)
11
8
37.5
13
(10.1)
46
44
5.8
Source: Company, Angel Research; *reporting changed from CY to FY starting January 2015
Exhibit 2: Actual vs. Angel estimates (4QFY2016)
Actual (` cr)
Estimate (` cr)
Var (%)
Total Income
366
397
(7.8)
EBIDTA
39
49
(21.6)
EBIDTA margin (%)
10.5
12.4
(184)bp
Adjusted PAT
26
33
(20.8)
Source: Company, Angel Research
Revenue and margin below expectations
GIL’s numbers for 4QFY2016 have come in below our estimates. The top-line
witnessed a marginal growth of 1.7% yoy to `366cr, which is below our estimate
of `397. Sales continue to be impacted on account of softness in demand for farm
tyres owing to erratic rainfall and only a moderate increase in MSPs. The demand
from OEMs has been unimpressive as tractor sales have reported marginal growth
rates for Oct-Dec 2015 period, that too on a lower base. The operational
performance improved on a yoy basis led by a 135bp yoy decline in other
expenses as a percentage of sales to 15.2% while raw material cost and employee
expense as a percentage of sales also declined marginally on a yoy basis. As a
result, the EBITDA grew by 27.7% yoy to `39cr and the EBITDA margin improved
by 214bp yoy to 10.5%. On the back of lower operating expenses and higher
other income, which grew by 43.7% yoy to `10cr, the net profit grew by 37.5% yoy
to `26cr against our estimate of `33cr.
February 9, 2016
2
Goodyear | 4QFY2016 Result Update
Investment rationale
Focus to be among the leading players in passenger car segment
GIL is targeting towards becoming one of the top players in the passenger car tyre
segment in the next five years. The company is focusing on increasing its presence
in both the OEM and the aftermarket segments. It will be launching new products
and widening its product portfolio in the mid to premium and SUV segments of
passenger vehicles. To reach its goal, the company is weighing both organic as
well as inorganic growth options to expand in the segment. The Management has
indicated that apart from farm and passenger car tyres, it is looking at entering
into newer segments and ramping up newer launches to grow in India. The
company benefits from strong R&D capability of its parent Goodyear Tire & Rubber
Company (USA), which helps it in launching technologically superior products for
the Indian markets. The passenger vehicle segment has been the sole bright spot
in the Indian Auto Industry (non-MHCV) posting a growth rate of ~11% YTD in
FY2016. We believe that this increased focus on growing its presence in the
passenger car segment will lower the impact of poor performance of the tractor
industry.
Strong balance sheet with high RoIC; valuations remain
attractive!
GIL is a debt free-cash rich company with RoIC estimated at ~68% for FY2017.
The company’s cash and equivalents are expected to be at
`515cr by
FY2017-end, which amount to ~46% of the current market cap. GIL remains
among the cheapest MNCs available among those with a market cap in the range
of `1,000cr-`5,000cr. On a TTM basis, GIL trades at a P/E of 11.0x vis-à-vis
median TTM PE of ~27.7x for other MNCs. Thus, GIL is available at an attractive
valuation considering the fact that all other MNCs are trading above the 20.0x
mark.
Exhibit 3: On TTM PE basis, GIL is cheapest amongst MNCs
45
41
38
40
35
35
31
28
28
30
23
24
24
25
18
20
15
11
10
5
0
Source: Company, Angel Research
February 9, 2016
3
Goodyear | 4QFY2016 Result Update
Stable rubber prices to help in sustaining margins
Natural Rubber (NR) continues to show weakness as domestic NR prices further
slipped by ~10.0% yoy and ~8.0% qoq to `109/kg in 3QFY2016. Global prices
during the period have declined by ~17.0% yoy and ~14.0% qoq suggesting the
higher global inventory is likely to keep prices at lower levels. With lower raw
material price environment prevailing, we expect GIL to maintain its margin in the
near future.
Exhibit 4: International vs. Domestic rubber price trend
230
Domestic Price
International Price
210
190
170
150
130
110
91
90
85
70
50
Source: Angel Research
Tractor demand outlook muted in the near term, long term
prospects remain intact
GIL is a market leader in the tractor tyre industry. The tractor industry has
witnessed a sharp decline in volumes over the past few years due to below average
monsoon, unseasonal rains and moderate increase in MSPs that has hurt rural
sentiments. However, expectation of a normal monsoon and increase in MSPs are
likely to prove as triggers for the overall tractor industry. Industry reports suggest
that the tractor industry is expected to post a CAGR of ~6% over the next five years
owing to factors mentioned above as well as factors such as shortage of labor
which is driving a trend towards farm mechanization.
February 9, 2016
4
Goodyear | 4QFY2016 Result Update
Exhibit 5: M&M Domestic tractor sales trend
80,000
30.0
18.3
20.0
70,000
10.0
60,000
4.0
0.3
-
50,000
(17.8)
(10.0)
(20.0)
40,000
(24.5)
(26.7)
(30.0)
30,000
(40.0)
(50.0)
20,000
(60.0)
(66.0)
10,000
(70.0)
-
(80.0)
1QFY15 2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16
M&M DomesticTractor Sales (LHS)
yoy growth % (RHS)
Source: Company, Angel Research
Financials
Although the near term outlook remains subdued owing to poor tractor sales, we
expect stable improvement in the company’s performance over FY2016E-17E
citing recovery in tractor sales, Management’s drive to expands its presence in the
passenger vehicle segment and entry into newer segments. We expect GIL’s
revenue to be at `1,800cr and `1,600cr in FY2016E and FY2017E, respectively.
Exhibit 6: Top-line to recover
2,100
30
27.6
25
1,800
20
16.7
1,500
14.0
15
1,200
10
5.9
5
0.7
900
0
(2.1)
600
(5)
300
(11
.1)
(10)
0
(15)
CY2010
CY2011
CY2012
CY2013
CY2014 FY2016E* FY2017E
Revenue (LHS)
Revenue yoy growth (RHS)
Source: Company, Angel Research; *reporting changed from CY to FY starting January 2015
Domestic rubber prices have seen a declining trend since November 2011 from
the high of ~`200/kg to current levels of ~`90/kg while international prices are
trading close at ~`85/kg. We expect rubber prices to remain at lower levels and
report marginal increase if any over FY2016-17E.
February 9, 2016
5
Goodyear | 4QFY2016 Result Update
Exhibit 7: EBITDA and margin trend
Exhibit 8: PAT trend
225
14.0
160
10.0
200
140
7.5
7.6
11.7
11.
7
12.0
8.0
175
120
6.4
6.0
150
100
10.0
6.0
125
9.7
80
4.3
8.9
3.8
100
8.0
4.0
60
75
7.1
40
50
6.1
6.0
2.0
20
25
-
4.0
0
-
CY2011
CY2012
CY2013
CY2014
FY2016E* FY2017E
CY2011
CY2012
CY2013
CY2014
FY2016E* FY2017E
EBITDA (LHS)
EBITDA margin (RHS)
PAT (LHS)
PAT margin (RHS)
Source: Company, Angel Research; *reporting changed from CY to FY
Source: Company, Angel Research; *reporting changed from CY to FY
starting January 2015
starting January 2015
Led by recovery in volumes, coupled with raw material prices remaining at lower
levels, the net profit is expected to be at `135cr and at `122cr in FY2016E and
FY2017E, respectively.
Outlook and valuation
We have estimated the top-line to be at `1,800cr and `1,600cr in FY2016E (15
months) and FY2017E, respectively, while the net profit is expected to be at `135cr
and `122cr for the same period. At the current market price, GIL trades at a PE of
9.2x its FY2017E earnings (11.0x on TTM basis). GIL is among the cheapest stocks
available in the MNC space (with market cap in the range of `1,000cr-`1,500cr).
All other MNCs falling in a similar market cap range are trading above the 20.0x
mark on a TTM basis with median PE being 27.7x. We maintain our Buy
recommendation on the stock and assign a target price of `582 based on a target
PE of 11x its FY2017E EPS.
Exhibit 11: Relative valuation
Mcap
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/
Company
Year
(` cr)
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
Sales (x)
Apollo tyres
FY2017E
6,874
12,689
16.0
968
19.0
13.0
7.1
0.9
0.7
MRF
FY2017E
14,250
14,488
21.1
1,611
3,797.9
21.2
9.0
1.7
0.9
Goodyear
FY2017E
1,124
1,600
11.5
122
52.9
18.7
9.2
1.6
0.4
Source: Company, Angel Research, Bloomberg
GIL is fairly priced vis-à-vis its peers in the tyre industry in terms of PE and PBV
multiples considering its high ROE; but it is trading at a relatively lower valuation
of 0.4x EV/Sales multiple based on FY2017E earnings.
February 9, 2016
6
Goodyear | 4QFY2016 Result Update
Exhibit 9: One-year forward P/E band
1,000
Price (`)
5x
8x
11x
14
900
800
700
600
500
400
300
200
100
-
Source: Company, Angel Research
Risks
Volatile rubber prices: Rubber constitutes ~55% of the total raw-material cost in
the manufacture of tyres. Domestic rubber prices have declined from the level of
`200/kg in June 2012 to average levels of `121/kg in CY2015 and to `91/kg
currently. However, increase in rubber prices will have a negative impact on the
company’s EBITDA margin and consequently on its profit.
Concentrated product portfolio: GIL’s product portfolio is primarily
concentrated to tractor and passenger car tyres. Both these segments constitute
~98% of the total tonnage off-take of the company. Due to high dependency on
these segments, GIL is exposed to the risk of any slowdown in these segments.
Termination of off-take agreement: GIL is in an off-take agreement (on a
non-exclusive basis and can be terminated by either party with a four-month
notice) with Goodyear South Asia Tyres Pvt Ltd, from which it procures passenger
vehicle tyres. Considering that a significant percentage of GIL’s sales are backed
by this agreement, termination of the same may affect GIL’s sales considerably.
Hike in import duty of rubber: In the wake of falling domestic rubber prices, the
Central Government has increased the import duty on natural rubber to lower of
25% or `30/kg, from lower of 20% or `30/kg. Further upward revision in the
import duty will have an adverse impact on GIL’s profitability.
Company Background
GIL is a subsidiary of Goodyear Orient Company (Private) Ltd (a wholly owned
subsidiary of Goodyear Tire and Rubber Company, USA), which holds a 74% stake
in the company. The company majorly caters to the tractor tyre segment, where it
has a market share of ~22.0% in tractor front tyres and ~34.3% in tractor rear
tyres as of CY2012.
February 9, 2016
7
Goodyear | 4QFY2016 Result Update
Profit & Loss Statement
Y/E December (` cr)
CY2012
CY2013
CY2014
FY2016E*
FY2017E
Gross sales
1,613
1,706
1,709
1,953
1,735
Less: Excise duty
132
137
130
152
135
Net Sales
1,481
1,569
1,579
1,800
1,600
Other operating income
-
-
-
-
-
Total operating income
1,481
1,569
1,579
1,800
1,600
% chg
(2.1)
5.9
0.7
14.0
(11.1)
Net Raw Materials
1,102
1,116
1,094
1,157
1,034
Personnel
81
88
99
137
121
Other
207
226
232
295
262
Total Expenditure
1,391
1,430
1,426
1,590
1,416
EBITDA
91
139
154
211
184
% chg
(15.3)
53.2
10.5
37.3
(12.9)
(% of Net Sales)
6.1
8.9
9.7
11.7
11.5
Depreciation
24
25
29
40
35
EBIT
67
114
125
171
148
% chg
(23.7)
70.8
9.9
36.5
(13.1)
(% of Net Sales)
4.5
7.3
7.9
9.5
9.3
Interest & other charges
4
2
3
3
2
Other Income
22
30
32
38
39
(% of sales)
1.5
1.9
2.0
2.1
2.4
PBT
85
142
154
205
185
% chg
(12.1)
67.7
8.2
33.7
(9.9)
Tax
28
48
52
70
63
(% of PBT)
33.5
33.7
34.0
34.0
34.0
PAT (reported)
56
94
101
135
122
Extraordinary (Exp)/Inc.
(0)
-
-
-
-
ADJ. PAT
57
94
101
135
122
% chg
(13.4)
66.3
7.6
33.8
(9.9)
(% of Net Sales)
3.8
6.0
6.4
7.5
7.6
Basic EPS (`)
24.5
40.8
43.9
58.7
52.9
Fully Diluted EPS (`)
24.5
40.8
43.9
58.7
52.9
% chg
(12.4)
66.3
7.6
33.8
(9.9)
*reporting changed from CY to FY starting January 2015
February 9, 2016
8
Goodyear | 4QFY2016 Result Update
Balance Sheet
Y/E December (` cr)
CY2012
CY2013
CY2014E
FY2016E*
FY2017E
SOURCES OF FUNDS
Equity Share Capital
23
23
23
23
23
Preference Capital
-
-
-
-
-
Reserves& Surplus
331
400
474
581
676
Shareholders’ Funds
354
424
497
605
699
Minority Interest
-
-
-
-
-
Total Loans
-
-
-
-
-
Deferred Tax Liability
11
13
14
12
12
Other Long Term Liabilities
-
3
5
4
3
Long Term Provisions
19
20
21
23
21
Total Liabilities
384
459
536
644
735
APPLICATION OF FUNDS
Gross Block
398
430
481
541
595
Less: Acc. Depreciation
201
220
241
281
317
Net Block
198
210
240
260
279
Capital Work-in-Progress
17
32
17
10
10
Goodwill
-
-
-
-
-
Investments
-
-
-
-
-
Long Term Loans and adv.
19
17
19
15
15
Other non-current assets
0
0
1
1
1
Current Assets
507
600
617
678
788
Cash
238
317
365
408
515
Loans & Advances
6
10
6
11
10
Inventory
104
99
123
125
115
Debtors
154
165
112
127
141
Other Current Assets
4
9
10
8
8
Current liabilities
357
400
358
321
358
Net Current Assets
150
200
259
358
430
Misc. Exp. not written off
-
-
-
-
-
Total Assets
384
459
536
644
735
*reporting changed from CY to FY starting January 2015
February 9, 2016
9
Goodyear | 4QFY2016 Result Update
Cash Flow Statement
Y/E December (` cr)
CY2012
CY2013
CY2014E FY2016E* FY2017E
Profit before tax
85
142
154
205
185
Depreciation
24
25
29
40
35
Change in Working Capital
(40)
29
(11)
(56)
35
Other income
(22)
(30)
(32)
(38)
(39)
Direct taxes paid
(28)
(48)
(52)
(71)
(63)
Others
7
14
12
-
-
Cash Flow from Operations
26
131
99
81
154
(Inc.)/Dec. in Fixed Assets
(23)
(46)
(36)
(53)
(54)
(Inc.)/Dec. in Investments
-
-
-
-
-
(Incr)/Decr In L.T. loan and adv.
(4)
2
(2)
3
-
Other income
22
30
32
38
39
Others
(10)
(18)
(17)
-
-
Cash Flow from Investing
(14)
(32)
(24)
(12)
(15)
Issue of Equity
-
-
-
-
-
Inc./(Dec.) in loans
-
-
2
(1)
(0)
Inc./(Dec.) in L.T. Pro. & Liab.
1
1
1
3
(3)
Dividend Paid (Incl. Tax)
(19)
(24)
(28)
(28)
(28)
Others
(5)
3
(2)
-
-
Cash Flow from Financing
(23)
(21)
(27)
(26)
(31)
Inc./(Dec.) in Cash
(11)
78
48
43
107
Opening Cash balances
249
238
317
365
408
Closing Cash balances
238
317
365
408
515
*reporting changed from CY to FY starting January 2015
February 9, 2016
10
Goodyear | 4QFY2016 Result Update
Key Ratios
Y/E December
CY2012
CY2013
CY2014E
CY2015E
CY2016E
Valuation Ratio (x)
P/E (on FDEPS)
19.9
12.0
11.1
8.3
9.2
P/CEPS
13.9
9.4
8.7
6.4
7.2
P/BV
3.2
2.7
2.3
1.9
1.6
Dividend yield (%)
1.4
1.8
2.1
2.1
2.1
EV/Sales
0.6
0.5
0.5
0.4
0.4
EV/EBITDA
9.8
5.8
4.9
3.4
3.3
EV / Total Assets
2.3
1.8
1.4
1.1
0.8
Per Share Data (`)
EPS (Basic)
24.5
40.8
43.9
58.7
52.9
EPS (fully diluted)
24.5
40.8
43.9
58.7
52.9
Cash EPS
35.0
51.7
56.3
76.1
68.2
DPS
7.0
9.0
10.0
10.0
10.0
Book Value
153.5
183.6
215.4
262.1
303.0
Dupont Analysis
EBIT margin
4.5
7.3
7.9
9.5
9.3
Tax retention ratio
0.7
0.7
0.7
0.7
0.7
Asset turnover (x)
14.5
13.1
11.9
9.5
7.3
ROIC (Post-tax)
43.4
63.2
62.4
59.3
44.9
Cost of Debt (Post Tax)
-
-
-
-
-
Leverage (x)
(0.7)
(0.7)
(0.7)
(0.7)
(0.7)
Operating ROE
14.2
16.0
16.6
19.3
11.8
Returns (%)
ROCE (Pre-tax)
18.3
27.0
25.1
29.0
21.5
Angel ROIC (Pre-tax)
65.1
95.4
94.6
89.9
68.0
ROE
16.9
24.2
22.0
24.6
18.7
Turnover ratios (x)
Asset Turnover
3.8
3.8
3.5
3.5
2.8
Inventory / Sales (days)
23
24
26
31
27
Receivables (days)
35
37
32
32
32
Payables (days)
118
124
126
126
126
WC (ex-cash) (days)
(27)
(24)
(26)
(20)
(15)
Solvency ratios (x)
Net debt to equity
(0.7)
(0.7)
(0.7)
(0.7)
(0.7)
Net debt to EBITDA
(2.6)
(2.3)
(2.4)
(1.9)
(2.8)
Interest Coverage
17.5
52.7
36.7
52.1
68.0
*reporting changed from CY to FY starting January 2015
February 9, 2016
11
Goodyear | 4QFY2016 Result Update
Research Team Tel: 022 - 39357800
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitian Stock Exchange of India Limited. It is also registered as a Depository Participant
with CDSL and Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private
Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration
number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for
accessing /dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial
interest/beneficial ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any
compensation / managed or co-managed public offering of securities of the company covered by Analyst during the past twelve
months. Angel/analyst has not served as an officer, director or employee of company covered by Analyst and has not been engaged in
market making activity of the company covered by Analyst.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
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or in connection with the use of this information.
Note: Please refer to the important ‘Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement
Goodyear India
1. Analyst ownership of the stock
No
2. Angel and its Group companies ownership of the stock
No
3. Angel and its Group companies' Directors ownership of the stock
No
4. Broking relationship with company covered
No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Based on expected returns
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
over 12 months investment period):
Reduce (-5% to -15%)
Sell (< -15%)
February 9, 2016
12
