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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532343 | NSE: TVSMOTOR

TVS Motor Company Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:35 pm

Market Cap 1,13,473 Cr.
Current Price 2,388
High / Low2,958/1,746
Stock P/E60.1
Book Value 163
Dividend Yield0.33 %
ROCE14.7 %
ROE26.6 %
Face Value 1.00
PEG Ratio2.74

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for TVS Motor Company Ltd

Competitors of TVS Motor Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hero MotoCorp Ltd 95,354 Cr. 4,7686,246/3,41423.1 9512.41 %29.1 %22.0 % 2.00
Bajaj Auto Ltd 2,65,414 Cr. 9,50512,774/5,78336.0 1,1090.84 %33.5 %26.5 % 10.0
Atul Auto Ltd 1,504 Cr. 543844/470102 1540.00 %4.20 %1.68 % 5.00
TVS Motor Company Ltd 1,13,473 Cr. 2,3882,958/1,74660.1 1630.33 %14.7 %26.6 % 1.00
Eicher Motors Ltd 1,33,819 Cr. 4,8825,105/3,56231.4 6931.04 %31.1 %24.2 % 1.00
Industry Average121,912.80 Cr4,417.2050.52614.000.92%22.52%20.20%3.80

All Competitor Stocks of TVS Motor Company Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales4,6896,4836,5976,5857,3168,5618,0668,0319,0569,93310,11410,04210,407
Expenses4,2745,7445,8285,7606,4207,4907,0556,9827,8528,5888,6398,5678,960
Operating Profit4157407708268961,0711,0111,0491,2041,3451,4751,4761,447
OPM %9%11%12%13%12%13%13%13%13%14%15%15%14%
Other Income-34814123130867875112-4441
Interest221223234263292338339398437483494513503
Depreciation164182190207199212216232227237242269246
Profit before tax-3343359368436550464486627676750650739
Tax %337%32%34%25%32%32%35%31%30%38%32%37%34%
Net Profit-15234237275297373304336441416510412485
EPS in Rs-0.225.105.215.846.438.136.337.079.148.1310.088.159.70

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales7,5108,38410,25611,37712,46316,34020,16018,84919,42124,35531,97439,145
Expenses7,0727,8929,65010,55811,59114,76917,99716,58517,18921,60127,94733,645
Operating Profit4384926058198711,5712,1632,2642,2322,7554,0275,500
OPM %6%6%6%7%7%10%11%12%11%11%13%14%
Other Income13044809316371251236-5136106
Interest103806270603386638558819401,3681,928
Depreciation176149179262317374442556565743859975
Profit before tax2903074445806589311,0838658221,0671,9362,703
Tax %32%39%28%26%23%29%33%25%26%31%32%34%
Net Profit1981873284295096657256476087311,3091,779
EPS in Rs4.163.926.919.0310.7613.7314.8313.1512.5115.9327.9735.50
Dividend Payout %30%37%28%28%23%24%24%27%28%24%18%23%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-5.56%75.40%30.79%18.65%30.65%9.02%-10.76%-6.03%20.23%79.07%35.91%
Change in YoY Net Profit Growth (%)0.00%80.96%-44.61%-12.14%12.00%-21.63%-19.78%4.73%26.26%58.84%-43.16%

TVS Motor Company Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:14%
3 Years:26%
TTM:19%
Compounded Profit Growth
10 Years:25%
5 Years:18%
3 Years:39%
TTM:29%
Stock Price CAGR
10 Years:27%
5 Years:40%
3 Years:50%
1 Year:34%
Return on Equity
10 Years:23%
5 Years:22%
3 Years:24%
Last Year:27%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:49 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital48484848484848484848484848
Reserves8511,1131,2771,7712,1692,6303,1233,2353,7794,3525,4576,7367,712
Borrowings1,0687281,1191,0911,3116,9289,29811,59112,17915,82722,37626,00614,619
Other Liabilities1,4151,7432,1262,2362,6013,5864,2284,3995,8596,6927,1449,23522,568
Total Liabilities3,3813,6324,5705,1466,12813,19016,69619,27221,86526,91935,02542,02444,946
Fixed Assets1,5931,5171,6372,0382,3623,0943,3673,8114,2215,9755,7485,8916,851
CWIP36489347643137451,0061,0415527431,033417
Investments3484395399431,1554214403714686059671,1231,166
Other Assets1,4041,6282,3012,1182,5479,36212,14514,08516,13519,78827,56633,97736,512
Total Assets3,3813,6324,5705,1466,12813,19016,69619,27221,86526,91935,02542,02444,946

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +46447083936689354-9183731,151-1,575-4,405-1,253
Cash from Investing Activity +-120-235-415-605-709-1,095-1,104-1,090-882-1,471-1,308-1,001
Cash from Financing Activity +-402-216261-319-598972,2101,6192642,9186,1182,759
Net Cash Flow-5819-7112-79156188902532-128406505

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow437.00-236.00604.00818.00870.00-5.00-7.00-9.00-10.00-13.00-18.00-21.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days151515162124282819181417
Inventory Days434151404734343539373434
Days Payable58647674808683941211058999
Cash Conversion Cycle1-7-11-18-12-28-21-31-63-50-41-48
Working Capital Days-7-76-8-2345847218197100
ROCE %14%19%21%22%22%19%16%13%11%11%13%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters52.26%52.26%50.81%50.81%50.81%50.27%50.27%50.27%50.27%50.27%50.27%50.27%
FIIs12.77%12.86%11.97%9.85%12.64%14.45%17.02%18.13%18.51%19.27%20.83%21.05%
DIIs25.15%25.46%28.51%30.74%27.61%26.85%24.39%23.41%23.10%21.79%20.26%20.13%
Public9.82%9.42%8.72%8.60%8.96%8.44%8.33%8.19%8.12%8.68%8.64%8.56%
No. of Shareholders1,82,9061,98,5762,01,4151,83,5631,93,4111,94,3051,94,3471,98,0022,02,5582,42,0942,60,6182,69,776

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Balanced Advantage Fund12,236,5674.942893.762,098,6112024-11-20483.08%
ICICI Prudential Flexicap Fund6,286,9279.291486.762,098,6112024-11-20199.58%
ICICI Prudential Equity & Debt Fund3,840,2852.45908.172,098,6112024-11-2082.99%
Canara Robeco Emerging Equities3,229,7513.21763.792,098,6112024-11-2053.9%
SBI Multicap Fund3,000,0004.17709.462,098,6112024-11-2042.95%
SBI Blue Chip Fund2,349,1291.13555.532,098,6112024-11-2011.94%
ICICI Prudential Value Discovery Fund2,318,4791.21548.292,098,6112024-11-2010.48%
Axis Midcap Fund2,098,6111.65496.292,098,6112024-11-200%
ICICI Prudential Bluechip Fund1,867,8000.74441.712,098,6112024-11-20-11%
ICICI Prudential Multi Asset Fund1,481,7930.8350.422,098,6112024-11-20-29.39%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)35.5027.9715.9312.5113.15
Diluted EPS (Rs.)35.5027.9715.9312.5113.15
Cash EPS (Rs.)58.8746.5030.9724.8425.50
Book Value[Excl.RevalReserv]/Share (Rs.)158.10124.39106.3688.7175.84
Book Value[Incl.RevalReserv]/Share (Rs.)158.10124.39106.3688.7175.84
Revenue From Operations / Share (Rs.)823.93672.99512.64408.77396.74
PBDIT / Share (Rs.)118.9188.5258.6748.1048.93
PBIT / Share (Rs.)98.3870.4443.0436.2137.23
PBT / Share (Rs.)57.8141.6122.4017.4618.40
Net Profit / Share (Rs.)38.3528.4215.3312.9513.79
NP After MI And SOA / Share (Rs.)35.4927.9715.9312.5113.15
PBDIT Margin (%)14.4313.1511.4411.7612.33
PBIT Margin (%)11.9410.468.398.859.38
PBT Margin (%)7.016.184.364.274.63
Net Profit Margin (%)4.654.222.993.163.47
NP After MI And SOA Margin (%)4.304.153.103.053.31
Return on Networth / Equity (%)24.8524.1317.2015.5219.03
Return on Capital Employeed (%)22.1020.8915.4615.5118.95
Return On Assets (%)3.993.772.792.703.22
Long Term Debt / Equity (X)1.861.651.661.641.59
Total Debt / Equity (X)3.733.933.482.442.74
Asset Turnover Ratio (%)1.011.031.231.131.26
Current Ratio (X)1.020.880.920.960.97
Quick Ratio (X)0.910.780.800.840.85
Inventory Turnover Ratio (X)11.3811.2812.4910.6910.17
Dividend Payout Ratio (NP) (%)22.5317.8723.5427.9826.62
Dividend Payout Ratio (CP) (%)14.2810.8511.8714.3414.08
Earning Retention Ratio (%)77.4782.1376.4672.0273.38
Cash Earning Retention Ratio (%)85.7289.1588.1385.6685.92
Interest Coverage Ratio (X)2.933.072.962.592.72
Interest Coverage Ratio (Post Tax) (X)1.951.991.821.711.81
Enterprise Value (Cr.)125803.8871339.2444139.8635878.6622321.02
EV / Net Operating Revenue (X)3.212.231.811.851.18
EV / EBITDA (X)22.2716.9615.8315.709.60
MarketCap / Net Operating Revenue (X)2.611.601.221.430.74
Retention Ratios (%)77.4682.1276.4572.0173.37
Price / BV (X)15.079.306.767.264.30
Price / Net Operating Revenue (X)2.611.601.221.430.74
EarningsYield0.010.020.020.020.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of TVS Motor Company Ltd as of November 21, 2024 is: 2,614.41

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, TVS Motor Company Ltd is Undervalued by 9.48% compared to the current share price 2,388.00

Intrinsic Value of TVS Motor Company Ltd as of November 21, 2024 is: 3,188.85

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, TVS Motor Company Ltd is Undervalued by 33.54% compared to the current share price 2,388.00

Last 5 Year EPS CAGR: 21.97%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.33%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -27.42, which is a positive sign.
  3. The company has shown consistent growth in sales (17.92 cr) and profit (408.50 cr) over the years.
  1. The stock has a high average Working Capital Days of 35.00, which may not be favorable.
  2. The company has higher borrowings (9,549.31) compared to reserves (3,400.38), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in TVS Motor Company Ltd:
    1. Net Profit Margin: 4.65%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 22.1% (Industry Average ROCE: 22.52%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 24.85% (Industry Average ROE: 20.2%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.95
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.91
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 60.1 (Industry average Stock P/E: 50.52)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 3.73
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

TVS Motor Company Ltd. is a Public Limited Listed company incorporated on 10/06/1992 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L35921TN1992PLC022845 and registration number is 022845. Currently Company is involved in the business activities of Manufacture of parts and accessories of three wheelers and motorcycles including side cars. Company’s Total Operating Revenue is Rs. 20790.51 Cr. and Equity Capital is Rs. 47.51 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto - 2 & 3 WheelersChaitanya, No. 12, Khader Nawaz Khan Road, Chennai (Madras) Tamil Nadu 600006contactus@tvsmotor.com
http://www.tvsmotor.com
Management
NamePosition Held
Prof. Ralf Dieter SpethChairman
Mr. Venu SrinivasanChairman Emeritus & Managing Director
Mr. Sudarshan VenuManaging Director
Mr. K N RadhakrishnanDirector & CFO
Mr. C R DuaDirector
Mr. Shailesh HaribhaktiDirector
Dr. Deepali Pant JoshiDirector
Mr. Kuok Meng XiongDirector
Mr. Vijay SankarDirector
Mr. Hemant Krishan SinghDirector
Mr. B SriramDirector
Dr. Lakshmi VenuDirector

FAQ

What is the latest intrinsic value of TVS Motor Company Ltd?

The latest intrinsic value of TVS Motor Company Ltd as on 21 November 2024 is ₹2614.41, which is 9.48% higher than the current market price of ₹2,388.00.

What is the Market Cap of TVS Motor Company Ltd?

The Market Cap of TVS Motor Company Ltd is 1,13,473 Cr..

What is the current Stock Price of TVS Motor Company Ltd as on 21 November 2024?

The current stock price of TVS Motor Company Ltd as on 21 November 2024 is ₹2,388.

What is the High / Low of TVS Motor Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of TVS Motor Company Ltd stocks is 2,958/1,746.

What is the Stock P/E of TVS Motor Company Ltd?

The Stock P/E of TVS Motor Company Ltd is 60.1.

What is the Book Value of TVS Motor Company Ltd?

The Book Value of TVS Motor Company Ltd is 163.

What is the Dividend Yield of TVS Motor Company Ltd?

The Dividend Yield of TVS Motor Company Ltd is 0.33 %.

What is the ROCE of TVS Motor Company Ltd?

The ROCE of TVS Motor Company Ltd is 14.7 %.

What is the ROE of TVS Motor Company Ltd?

The ROE of TVS Motor Company Ltd is 26.6 %.

What is the Face Value of TVS Motor Company Ltd?

The Face Value of TVS Motor Company Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in TVS Motor Company Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE