Our 1st company in the Series of Which stock pays the highest dividend in india 2021 is Goodyear India Ltd.
Here is the detail of dividend of Goodyear India Ltd
| EX-DATE | DIVIDEND AMOUNT | DIVIDEND TYPE |
| Aug. 4, 2021 | 80.00 | SPECIAL |
| Aug. 4, 2021 | 18.00 | FINAL |
| Dec. 14, 2020 | 80.00 | INTERIM |
You can see company given Rs. 80.00 and Rs. 18.00 on Aug. 4, 2021.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
The company is engaged in the manufacturing and trading of tires, tubes and flaps. The Company supplies tires to a range of original equipment manufacturers (OEMs).
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹2,425cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 17.80
Sector PE Ratio: -384.86
PE Ratio of this company is high than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 2.89
Sector PB Ratio : 5.02
PB Ratio of this company is low than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 9.32%
Sector Dividend Yield : 0.61%
Dividend Yield of this company is high than Sector. Dividend of this is Good than the peers of this company.
ROE: 16.22%
ROCE: 21.27%
ROE (Return on equity) and ROCE (Return on capital equity) is Above Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 1,814.29 | 136.26 |
| 2020 | 1,780.74 | 88.84 |
| 2019 | 1,949.60 | 102.07 |
| 2018 | 1,701.34 | 129.96 |
You can see the company growth clearly in the above table, in 2019 Net profit was 102.07 Cr. only and in 2020, It decreased to 88.84 Cr. and in 2021, it is increased to 136.26 Cr.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 551.03 | 391.06 | 463.41 | 495.38 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021, Company have 551.03 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 249.69 | 3.68 | -15.62 | 131.55 |
Debt Level: GOODYEAR is debt free.
Reducing Debt: GOODYEAR had no debt 5 years ago.
Debt Coverage: GOODYEAR has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: GOODYEAR has no debt, therefore coverage of interest payments is not a concern.
We should also check the Share Holding patterns of the company.
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 74.00% | 0.82% | 6.12% | 1.38% | 17.69% |
| Mar 2021 | 74.00% | 1.75% | 6.51% | 1.24% | 16.50% |
| Dec 2020 | 74.00% | 1.73% | 7.02% | 1.14% | 16.12% |
| Sep 2020 | 74.00% | 2.03% | 7.51% | 0.05% | 16.41% |
Above table showing there is no big change in Promotors holding which is 74.00% in June 2021. FIIs invested in June 2021 with 0.82% and retail investor is 17.69% .
Now We’ll check the return of the company, This company started from Rs. 836.95 at 07 oct 2020. This company given 30.65% returns in last 1 year from 2020 to13 Aug 2021.
Investment Checklist for Goodyear India Ltd.
- The company is currently profitable
- Company is debt free
- Dividend is Good
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins improved or GOODYEAR became profitable
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹18B)
- Market cap is meaningful (₹25B)
- GOODYEAR does not have negative shareholders equity.
According to its historical performance we can predict stock target.
[membership_protected_content user=non-member]
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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[membership_protected_content]
Entry Buying Zone : 950 to1000
Target: 1200 (25% Upside)
Time Horizon: 1 Year
Risk Profile: Moderate Risk (Stock is 2.46x as volatile as Nifty)
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Hope you liked Our 1st company in the Series of Which stock pays the highest dividend in india 2021 is Goodyear India Ltd. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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