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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 509243 | NSE: TVSSRICHAK

TVS Srichakra Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 8:54 pm

Market Cap 2,744 Cr.
Current Price 3,583
High / Low5,097/3,470
Stock P/E39.7
Book Value 1,404
Dividend Yield1.32 %
ROCE11.1 %
ROE10.6 %
Face Value 10.0
PEG Ratio8.18

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

View Share Price Target for TVS Srichakra Ltd

Competitors of TVS Srichakra Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Goodyear India Ltd 2,333 Cr. 1,0111,440/1,00039.9 2551.48 %22.0 %16.0 % 10.0
TVS Srichakra Ltd 2,744 Cr. 3,5835,097/3,47039.7 1,4041.32 %11.1 %10.6 % 10.0
JK Tyre & Industries Ltd 9,898 Cr. 361554/33713.0 1721.25 %19.3 %20.6 % 2.00
Innovative Tyres & Tubes Ltd 10.2 Cr. 5.6510.2/4.75 9.210.00 %26.6 %% 10.0
CEAT Ltd 11,506 Cr. 2,8453,263/2,08019.4 1,0381.05 %20.4 %18.1 % 10.0
Industry Average18,569.33 Cr1,581.0927.58512.740.98%19.06%16.02%6.43

All Competitor Stocks of TVS Srichakra Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales498.31691.34676.74670.29737.36833.50731.26682.85702.20739.65718.85765.30790.98
Expenses472.05628.08636.37635.70706.25750.79671.42627.58641.58649.04650.47688.10736.30
Operating Profit26.2663.2640.3734.5931.1182.7159.8455.2760.6290.6168.3877.2054.68
OPM %5.27%9.15%5.97%5.16%4.22%9.92%8.18%8.09%8.63%12.25%9.51%10.09%6.91%
Other Income2.920.710.072.35-3.171.060.195.603.26-0.581.50-6.50-0.35
Interest6.847.727.989.069.039.3210.4210.8611.7710.1010.1912.5913.21
Depreciation20.7422.2620.2716.5421.8322.6323.7423.3424.0925.7126.5227.5129.36
Profit before tax1.6033.9912.1911.34-2.9251.8225.8726.6728.0254.2233.1730.6011.76
Tax %32.50%25.65%26.17%29.72%-23.63%26.30%24.47%16.31%25.20%27.98%27.56%22.48%43.54%
Net Profit1.0825.279.007.97-2.2338.1919.5422.3220.9639.0524.0323.726.64
EPS in Rs1.4533.0511.7910.47-2.8649.9125.5629.2127.3651.0931.4731.068.72

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,6521,9382,1762,1851,9612,1522,4312,1041,9392,5432,9852,9263,015
Expenses1,5511,7871,9581,8581,6761,8992,1681,8871,7092,3732,7512,6252,724
Operating Profit101150219326284253263217230170234301291
OPM %6%8%10%15%14%12%11%10%12%7%8%10%10%
Other Income332-7235151210544-2-6
Interest62503322223137393334444846
Depreciation252642445669851001048092104109
Profit before tax4777137284211169153879859101146130
Tax %30%15%29%33%29%31%33%6%24%27%23%26%
Net Profit3365981901481161038274437810893
EPS in Rs35.5173.89130.11243.09192.79151.68134.44107.5396.5456.77101.85140.98122.34
Dividend Payout %21%22%26%25%26%26%30%19%31%29%32%34%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)96.97%50.77%93.88%-22.11%-21.62%-11.21%-20.39%-9.76%-41.89%81.40%38.46%
Change in YoY Net Profit Growth (%)0.00%-46.20%43.11%-115.98%0.48%10.41%-9.18%10.63%-32.14%123.29%-42.93%

TVS Srichakra 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:4%
5 Years:4%
3 Years:15%
TTM:9%
Compounded Profit Growth
10 Years:7%
5 Years:2%
3 Years:16%
TTM:-33%
Stock Price CAGR
10 Years:8%
5 Years:15%
3 Years:19%
1 Year:-28%
Return on Equity
10 Years:15%
5 Years:9%
3 Years:8%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:39 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital8888888888888
Reserves1542062754045536317217378179631,0271,1041,068
Borrowings297383274145315312426351208610662842876
Other Liabilities484428414412515475655520590779757739767
Total Liabilities9421,0259709691,3911,4261,8091,6161,6222,3592,4532,6932,718
Fixed Assets2783443823845326206626876667089051,0821,152
CWIP312018446326344863226145143110
Investments1014949689797101254255260260
Other Assets6326615694937487111,0167857931,1711,1491,2081,196
Total Assets9421,0259709691,3911,4261,8091,6161,6222,3592,4532,6932,718

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +187142444006418564299307-62206228
Cash from Investing Activity +8-89-84-120-215-102-120-136-92-282-202-325
Cash from Financing Activity +-15938-158-271149-7952-169-2153480101
Net Cash Flow35-3729-35-4-51443

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-196.00-233.00-55.00181.00-31.00-59.00-163.00-134.0022.00-440.00-428.00-541.00

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 Days506238293841513646342735
Inventory Days9474746313895123135149198161159
Days Payable115775234675083701021028591
Cash Conversion Cycle28585958109869110193131102103
Working Capital Days304226195147605247724756
ROCE %16%23%30%50%32%22%18%11%12%7%9%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters45.36%45.36%45.36%45.37%45.58%45.70%45.70%45.70%45.70%45.70%45.70%45.70%
FIIs2.31%2.10%1.88%1.41%1.20%1.08%1.01%1.11%1.16%1.02%1.00%1.05%
DIIs0.30%0.03%0.03%0.02%0.05%0.36%0.49%2.77%5.04%5.04%5.02%4.95%
Public52.03%52.51%52.72%53.21%53.17%52.85%52.80%50.41%48.07%48.22%48.27%48.30%
No. of Shareholders29,52029,26529,25828,05427,05126,68627,24926,66625,38324,96425,45726,279

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Small Cap Fund237,4710.67105.23237,4712024-11-230%
Quant Value Fund112,0734.4549.66237,4712024-11-23-52.81%
ITI ELSS Tax Saver Fund7,2891.213.23237,4712024-11-23-96.93%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)140.98101.8556.7796.54107.53
Diluted EPS (Rs.)140.98101.8556.7796.54107.53
Cash EPS (Rs.)276.23221.10160.74231.89238.17
Book Value[Excl.RevalReserv]/Share (Rs.)1450.991349.481266.961076.45972.41
Book Value[Incl.RevalReserv]/Share (Rs.)1450.991349.481266.961076.45972.41
Revenue From Operations / Share (Rs.)3819.843896.833300.522531.612746.40
PBDIT / Share (Rs.)396.13310.83226.24305.30294.36
PBIT / Share (Rs.)260.59191.33122.05169.78163.59
PBT / Share (Rs.)190.61132.4377.18127.64114.14
Net Profit / Share (Rs.)140.68101.5956.5596.37107.40
NP After MI And SOA / Share (Rs.)140.93101.8156.7596.50107.49
PBDIT Margin (%)10.377.976.8512.0510.71
PBIT Margin (%)6.824.903.696.705.95
PBT Margin (%)4.993.392.335.044.15
Net Profit Margin (%)3.682.601.713.803.91
NP After MI And SOA Margin (%)3.682.611.713.813.91
Return on Networth / Equity (%)9.707.544.478.9611.05
Return on Capital Employeed (%)12.0410.076.2212.3612.51
Return On Assets (%)4.003.171.844.555.09
Long Term Debt / Equity (X)0.380.310.370.120.17
Total Debt / Equity (X)0.750.640.620.170.44
Asset Turnover Ratio (%)1.141.241.231.161.20
Current Ratio (X)1.061.061.311.271.19
Quick Ratio (X)0.380.280.360.520.50
Inventory Turnover Ratio (X)2.102.252.562.352.61
Dividend Payout Ratio (NP) (%)22.7316.0052.840.0055.87
Dividend Payout Ratio (CP) (%)11.587.3618.630.0025.20
Earning Retention Ratio (%)77.2784.0047.160.0044.13
Cash Earning Retention Ratio (%)88.4292.6481.370.0074.80
Interest Coverage Ratio (X)6.806.015.487.305.95
Interest Coverage Ratio (Post Tax) (X)3.613.102.463.313.17
Enterprise Value (Cr.)3806.932600.441817.221498.35998.86
EV / Net Operating Revenue (X)1.300.870.710.770.47
EV / EBITDA (X)12.5510.9210.496.414.43
MarketCap / Net Operating Revenue (X)1.020.650.480.700.32
Retention Ratios (%)77.2683.9947.150.0044.12
Price / BV (X)2.691.891.261.650.91
Price / Net Operating Revenue (X)1.020.650.480.700.32
EarningsYield0.030.030.030.050.12

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of TVS Srichakra Ltd as of November 25, 2024 is: 5,986.30

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 25, 2024, TVS Srichakra Ltd is Undervalued by 67.08% compared to the current share price 3,583.00

Intrinsic Value of TVS Srichakra Ltd as of November 25, 2024 is: 6,276.69

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 25, 2024, TVS Srichakra Ltd is Undervalued by 75.18% compared to the current share price 3,583.00

Last 5 Year EPS CAGR: 4.85%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.08%, which is a positive sign.
  2. The company has higher reserves (666.15 cr) compared to borrowings (438.54 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.77 cr) and profit (130.69 cr) over the years.
  1. The stock has a high average Working Capital Days of 45.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 84.92, which may not be favorable.

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 Srichakra Ltd:
    1. Net Profit Margin: 3.68%
      • 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: 12.04% (Industry Average ROCE: 19.06%)
      • 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%: 9.7% (Industry Average ROE: 13.73%)
      • 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): 3.61
      • 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: 0.38
      • 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: 39.7 (Industry average Stock P/E: 23.64)
      • 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: 0.75
      • 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 Srichakra Ltd. is a Public Limited Listed company incorporated on 02/06/1982 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L25111TN1982PLC009414 and registration number is 009414. Currently Company is involved in the business activities of Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres. Company’s Total Operating Revenue is Rs. 2447.36 Cr. and Equity Capital is Rs. 7.66 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Tyres & TubesTVS Building, Madurai Tamil Nadu 625001sec.investorgrievances@eurogriptyres.com
http://www.tvseurogrip.com
Management
NamePosition Held
Mr. R NareshExecutive Vice Chairman
Ms. Shobhana RamachandhranManaging Director
Ms. S V MathangiDirector
Mr. P SrinivasavaradhanDirector
Mr. V RamakrishnanDirector
Mr. S RavichandranDirector
Mr. Ashok SrinivasanDirector
Mr. Piyush Jinendrakumar MunotDirector

FAQ

What is the latest intrinsic value of TVS Srichakra Ltd?

The latest intrinsic value of TVS Srichakra Ltd as on 25 November 2024 is ₹5986.30, which is 67.08% higher than the current market price of ₹3,583.00.

What is the Market Cap of TVS Srichakra Ltd?

The Market Cap of TVS Srichakra Ltd is 2,744 Cr..

What is the current Stock Price of TVS Srichakra Ltd as on 25 November 2024?

The current stock price of TVS Srichakra Ltd as on 25 November 2024 is 3,583.

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

In FY 2024, the High / Low of TVS Srichakra Ltd stocks is 5,097/3,470.

What is the Stock P/E of TVS Srichakra Ltd?

The Stock P/E of TVS Srichakra Ltd is 39.7.

What is the Book Value of TVS Srichakra Ltd?

The Book Value of TVS Srichakra Ltd is 1,404.

What is the Dividend Yield of TVS Srichakra Ltd?

The Dividend Yield of TVS Srichakra Ltd is 1.32 %.

What is the ROCE of TVS Srichakra Ltd?

The ROCE of TVS Srichakra Ltd is 11.1 %.

What is the ROE of TVS Srichakra Ltd?

The ROE of TVS Srichakra Ltd is 10.6 %.

What is the Face Value of TVS Srichakra Ltd?

The Face Value of TVS Srichakra Ltd is 10.0.

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 Srichakra 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