Service Long March Tyres Limited

Service Long March Tyres Limited’s health verdict is Stable, but its valuation verdict is Expensive. The scorecard shows zero growth, strong profitability (95.1), financial strength 72.0, cash quality 72.5, shareholder returns 75.0 and outlook 73.7; momentum is not scored. Positives include ROE of 22.1% above the T-bill rate, interest cover of 17.19 and a payout ratio of 45.4%. Negatives include only one year of EPS growth in the last five and a current ratio of 1.33. No red flags were listed. Operationally, Q1 FY27 revenue rose 34.3%, but margins compressed and operating cash flow was negative Rs 3.47 billion; short-term financing rose and debt to debt-plus-equity reached 0.42. Valuation looks expensive: P/E 11.32, P/B 3.88, dividend yield 3.89%, which is 7.11 percentage points below the T-bill yield; the five-year P/E median is not usable. Management cites inflation near 10%, a policy rate of 11.5%, Middle East conflict, commodity/freight costs and tariff risks, while the new 11% customs duty may aid local competitiveness.

Calculated 31 Oct 2026. Not investment advice; the figures above are the reference.