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Last Updated on: 07 July, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of TVS Motor Company Ltd

About the Company - TVS Motor Company Ltd

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
Mr. Venu SrinivasanChairman Emeritus & Managing Director
Prof. Sir Ralf Dieter SpethChairman
Mr. Sudarshan VenuManaging Director
Mr. K N RadhakrishnanDirector & CEO
Mr. C R DuaDirector
Mr. R GopalanDirector
Mrs. Lalita D GupteDirector
Mr. Kuok Meng XiongDirector
Mr. Hemant Krishan SinghDirector
Mr. B SriramDirector
Dr. Lakshmi VenuDirector

Basic Stock Data of TVS Motor Company Ltd

Last Updated: July 6, 2024, 12:28 pm

Market Cap 1,15,456 Cr.
Current Price 2,430
High / Low2,525/1,295
Stock P/E68.5
Book Value 143
Dividend Yield0.33 %
ROCE18.8 %
ROE27.4 %
Face Value 1.00
PEG Ratio3.23

Competitors of TVS Motor Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hero MotoCorp Ltd 1,11,123 Cr. 5,5585,895/2,88928.8 8852.07 %29.8 %22.5 % 2.00
Eicher Motors Ltd 1,29,807 Cr. 4,7374,978/3,15932.4 6591.08 %31.1 %24.2 % 1.00
Bajaj Auto Ltd 2,69,012 Cr. 9,63610,039/4,54134.8 1,0370.83 %33.5 %26.5 % 10.0
Industry Average169,980.67 Cr6,643.6732.00860.331.33%31.47%24.40%4.33

TVS Motor Company Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales6,0956,1324,6896,4836,5976,5857,3168,5618,0668,0319,0569,93310,114
Expenses5,3465,3544,2745,7445,8285,7606,4207,4907,0556,9827,8528,5888,639
Operating Profit7497784157407708268961,0711,0111,0491,2041,3451,475
OPM %12%13%9%11%12%13%12%13%13%13%13%14%15%
Other Income155-34814123130867875112
Interest221209221223234263292338339398437483494
Depreciation150159164182190207199212216232227237242
Profit before tax393414-3343359368436550464486627676750
Tax %26%23%-337%32%34%25%32%32%35%31%30%38%32%
Net Profit290319-15234237275297373304336441416510
EPS in Rs5.976.53-0.225.105.215.846.438.136.337.079.148.1310.08

Last Updated: July 2, 2024, 11:30 am

TVS Motor Company Ltd Quarterly Chart

TVS Motor Company Ltd Profit & Loss

Last Updated: May 29, 2024, 8:10 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales7,4357,5108,38410,25611,37712,46316,34020,16018,84919,42124,35531,97437,134
Expenses6,9777,0727,8929,65010,55811,59114,76917,99716,58517,18921,60127,94732,060
Operating Profit4594384926058198711,5712,1632,2642,2322,7554,0275,074
OPM %6%6%6%6%7%7%10%11%12%11%11%13%14%
Other Income1513044809316371251236-5136216
Interest88103806270603386638558819401,3681,813
Depreciation158176149179262317374442556565743859938
Profit before tax2272903074445806589311,0838658221,0671,9362,539
Tax %42%32%39%28%26%23%29%33%25%26%31%32%
Net Profit1321981873284295096657256476087311,3091,703
EPS in Rs2.794.163.926.919.0310.7613.7314.8313.1512.5115.9327.9734.42
Dividend Payout %48%30%37%28%28%23%24%24%27%28%24%18%

TVS Motor Company Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)50.00%-5.56%75.40%30.79%18.65%30.65%9.02%-10.76%-6.03%20.23%79.07%
Change in YoY Net Profit Growth (%)0.00%-55.56%80.96%-44.61%-12.14%12.00%-21.63%-19.78%4.73%26.26%58.84%

TVS Motor Company Ltd Growth

Compounded Sales Growth
10 Years:17%
5 Years:14%
3 Years:26%
TTM:22%
Compounded Profit Growth
10 Years:25%
5 Years:19%
3 Years:41%
TTM:33%
Stock Price CAGR
10 Years:33%
5 Years:42%
3 Years:60%
1 Year:85%
Return on Equity
10 Years:23%
5 Years:23%
3 Years:24%
Last Year:27%

Last Updated: June 12, 2024, 4:03 am

TVS Motor Company Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital48484848484848484848484848
Reserves6758511,1131,2771,7712,1692,6303,1233,2353,7794,3525,4576,273
Borrowings1,3041,0687281,1191,0911,3116,9289,29811,59112,17915,82722,37612,853
Other Liabilities1,2901,4151,7432,1262,2362,6013,5864,2284,3995,8596,6927,14421,296
Total Liabilities3,3173,3813,6324,5705,1466,12813,19016,69619,27221,86526,91935,02540,469
Fixed Assets1,4721,5931,5171,6372,0382,3623,0943,3673,8114,2215,9755,7486,347
CWIP18636489347643137451,0061,041552743314
Investments3183484395399431,1554214403714686059671,048
Other Assets1,3401,4041,6282,3012,1182,5479,36212,14514,08516,13519,78827,56632,760
Total Assets3,3173,3813,6324,5705,1466,12813,19016,69619,27221,86526,91935,02540,469

TVS Motor Company Ltd Reserves and Borrowings Chart

TVS Motor Company Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 48746447083936689354-9183731,151-1,575-4,405
Cash from Investing Activity -507-120-235-415-605-709-1,095-1,104-1,090-882-1,471-1,308
Cash from Financing Activity -36-402-216261-319-598972,2101,6192642,9186,118
Net Cash Flow-56-5819-7112-79156188902532-128406

TVS Motor Company Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days151515162124282819181417
Inventory Days434151404734343539373434
Days Payable58647674808683941211058999
Cash Conversion Cycle1-7-11-18-12-28-21-31-63-50-42-48
Working Capital Days-7-76-8-2345847218197102
ROCE %14%19%21%22%22%19%16%13%11%11%13%

TVS Motor Company Ltd Financial Efficiency Indicators Chart

TVS Motor Company Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters52.26%52.26%52.26%50.81%50.81%50.81%50.27%50.27%50.27%50.27%50.27%50.27%
FIIs13.96%12.77%12.86%11.97%9.85%12.64%14.45%17.02%18.13%18.51%19.27%20.83%
DIIs24.26%25.15%25.46%28.51%30.74%27.61%26.85%24.39%23.41%23.10%21.79%20.26%
Public9.52%9.82%9.42%8.72%8.60%8.96%8.44%8.33%8.19%8.12%8.68%8.64%
No. of Shareholders1,46,4301,82,9061,98,5762,01,4151,83,5631,93,4111,94,3051,94,3471,98,0022,02,5582,42,0942,60,618

TVS Motor Company Ltd Shareholding Pattern Chart

No. of TVS Motor Company Ltd Shareholders

TVS Motor Company Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Balanced Advantage Fund11,216,6034.252272.262,349,1292024-07-05377.48%
ICICI Prudential Flexicap Fund6,461,1759.681308.92,349,1292024-07-05175.05%
SBI Multicap Fund4,100,0005.82830.582,349,1292024-07-0574.53%
Axis Midcap Fund3,748,6663.09759.42,349,1292024-07-0559.58%
ICICI Prudential Equity & Debt Fund3,743,7062.54758.42,349,1292024-07-0559.37%
ICICI Prudential Value Discovery Fund2,402,4971.3486.72,349,1292024-07-052.27%
SBI Blue Chip Fund2,349,1291.09475.892,349,1292024-07-050%
Canara Robeco Emerging Equities2,285,5332.334632,349,1292024-07-05-2.71%
Axis Bluechip Fund2,268,8051.39459.612,349,1292024-07-05-3.42%
ICICI Prudential Bluechip Fund1,867,8000.79378.382,349,1292024-07-05-20.49%

TVS Motor Company Ltd ROCE Trend

TVS Motor Company Ltd EPS Trend

TVS Motor Company Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)27.9715.9312.5113.1514.83
Diluted EPS (Rs.)27.9715.9312.5113.1514.83
Cash EPS (Rs.)46.5030.9724.8425.5024.53
Book Value[Excl.RevalReserv]/Share (Rs.)124.39106.3688.7175.8471.90
Book Value[Incl.RevalReserv]/Share (Rs.)124.39106.3688.7175.8471.90
Revenue From Operations / Share (Rs.)672.99512.64408.77396.74424.33
PBDIT / Share (Rs.)88.5258.6748.1048.9346.02
PBIT / Share (Rs.)70.4443.0436.2137.2336.72
PBT / Share (Rs.)41.6122.4017.4618.4022.76
Net Profit / Share (Rs.)28.4215.3312.9513.7915.23
NP After MI And SOA / Share (Rs.)27.9715.9312.5113.1514.83
PBDIT Margin (%)13.1511.4411.7612.3310.84
PBIT Margin (%)10.468.398.859.388.65
PBT Margin (%)6.184.364.274.635.36
Net Profit Margin (%)4.222.993.163.473.58
NP After MI And SOA Margin (%)4.153.103.053.313.49
Return on Networth / Equity (%)24.1317.2015.5219.0322.22
Return on Capital Employeed (%)20.8915.4615.5118.9520.49
Return On Assets (%)3.772.792.703.224.22
Long Term Debt / Equity (X)1.651.661.641.591.55
Total Debt / Equity (X)3.933.482.442.742.57
Asset Turnover Ratio (%)1.281.231.131.261.69
Current Ratio (X)0.880.920.960.971.02
Quick Ratio (X)0.780.800.840.850.86
Inventory Turnover Ratio (X)13.6212.4910.6910.1712.25
Dividend Payout Ratio (NP) (%)17.8723.5427.9826.6223.59
Dividend Payout Ratio (CP) (%)10.8511.8714.3414.0814.50
Earning Retention Ratio (%)82.1376.4672.0273.3876.41
Cash Earning Retention Ratio (%)89.1588.1385.6685.9285.50
Interest Coverage Ratio (X)3.072.962.592.723.30
Interest Coverage Ratio (Post Tax) (X)1.991.821.711.812.09
Enterprise Value (Cr.)71339.2444139.8635878.6622321.0230743.55
EV / Net Operating Revenue (X)2.231.811.851.181.52
EV / EBITDA (X)16.9615.8315.709.6014.06
MarketCap / Net Operating Revenue (X)1.601.221.430.741.12
Retention Ratios (%)82.1276.4572.0173.3776.40
Price / BV (X)9.306.767.264.307.11
Price / Net Operating Revenue (X)1.601.221.430.741.12
EarningsYield0.020.020.020.040.03

TVS Motor Company Ltd Profitability Ratios (%)

TVS Motor Company Ltd Liquidity Ratios

TVS Motor Company Ltd Liquidity Ratios (%)

TVS Motor Company Ltd Interest Coverage Ratios (X)

TVS Motor Company Ltd Valuation Ratios

Fair Value

Fair Value: 2,692.82

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.

Undervalued: 10.82% compared to the current price 2430

Intrinsic Value: 3,264.26

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 34.33% compared to the current price ₹2430

Last 5 Year EPS CAGR: 21.22%

*Investments are subject to market risks

Strength and Weakness of TVS Motor Company Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 15.08%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -27.50, which is a positive sign.
  3. The company has shown consistent growth in sales (16.92 cr) and profit (394.54 cr) over the years.
  1. The stock has a high average Working Capital Days of 35.17, which may not be favorable.
  2. The company has higher borrowings (7,513.31) compared to reserves (2,823.46), which may suggest financial risk.

Should I Buy TVS Motor Company Ltd Share Now?

  • 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: 4.22%
      • 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: 20.89% (Industry Average ROCE: 31.65%)
      • 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%: 24.13% (Industry Average ROE: 24.45%)
      • 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): 1.99
      • 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: 0.78
      • 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: 68.5 (Industry average Stock P/E: 33.05)
      • 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: 3.93
      • 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: ★☆☆☆☆

FAQ

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

The latest fair value of TVS Motor Company Ltd is ₹2692.82.

What is the Market Cap of TVS Motor Company Ltd?

The Market Cap of TVS Motor Company Ltd is 1,15,456 Cr..

What is the current Stock Price of TVS Motor Company Ltd as on 06 July 2024?

The current stock price of TVS Motor Company Ltd as on 06 July 2024 is 2,430.

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 2,525/1,295.

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

The Stock P/E of TVS Motor Company Ltd is 68.5.

What is the Book Value of TVS Motor Company Ltd?

The Book Value of TVS Motor Company Ltd is 143.

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 18.8 %.

What is the ROE of TVS Motor Company Ltd?

The ROE of TVS Motor Company Ltd is 27.4 %.

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