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Last Updated on: 23 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of TVS Srichakra Ltd

About the Company - TVS Srichakra Ltd

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. H Janardana IyerDirector
Mr. M S ViraraghavanDirector
Mr. Rasesh R DoshiDirector
Mr. S RavichandranDirector

TVS Srichakra Ltd. Share Price Update

Share PriceValue
Today₹4,181.45
Previous Day₹4,314.50

Basic Stock Data of TVS Srichakra Ltd

Market Cap 3,370 Cr.
Current Price 4,400
High / Low5,097/2,454
Stock P/E31.4
Book Value 1,403
Dividend Yield0.75 %
ROCE9.23 %
ROE8.16 %
Face Value 10.0

Data Source: screener.in

Competitors of TVS Srichakra Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Balkrishna Industries Ltd 45,217 Cr. 2,3392,796/1,90936.3 4250.69 %13.8 %13.8 % 2.00
MRF Ltd 63,452 Cr. 1,49,6501,50,750/81,38031.3 37,3280.12 %7.43 %4.87 % 10.0
Modi Rubber Ltd 265 Cr. 106106/51.117.0 2580.00 %4.89 %4.32 % 10.0
Industry Average124.33 Cr36.3328.22400.27%8.71%7.66%7.33

TVS Srichakra Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales552573602498691677670737834731683702740
Expenses466493523472628636636706751671628642649
Operating Profit87807926634035318360556191
OPM %16%14%13%5%9%6%5%4%10%8%8%9%12%
Other Income1033102-31063-1
Interest97678899910111210
Depreciation25263021222017222324232426
Profit before tax5448462341211-35226272854
Tax %26%24%24%32%26%26%30%24%26%24%16%25%28%
Net Profit40363512598-23820222139
EPS in Rs52.0447.3745.751.4533.0511.7910.47-2.8649.9125.5629.2127.3651.09

TVS Srichakra Ltd Quarterly Chart

TVS Srichakra Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,4531,6521,9382,1762,1851,9612,1522,4312,1041,9392,5432,9852,856
Expenses1,3241,5511,7871,9581,8581,6761,8992,1681,8871,7092,3732,7512,590
Operating Profit129101150219326284253263217230170234266
OPM %9%6%8%10%15%14%12%11%10%12%7%8%9%
Other Income5332-72351512105448
Interest57625033222231373933344443
Depreciation2325264244566985100104809297
Profit before tax554777137284211169153879859101135
Tax %28%30%15%29%33%29%31%33%6%24%27%23%
Net Profit3933659819014811610382744378102
EPS in Rs51.1835.5173.89130.11243.09192.79151.68134.44107.5396.5456.77101.85133.22
Dividend Payout %26%21%22%26%25%26%26%30%19%31%29%32%

TVS Srichakra 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 (%)-15.38%96.97%50.77%93.88%-22.11%-21.62%-11.21%-20.39%-9.76%-41.89%81.40%
Change in YoY Net Profit Growth (%)0.00%112.35%-46.20%43.11%-115.98%0.48%10.41%-9.18%10.63%-32.14%123.29%

TVS Srichakra Ltd Growth

Compounded Sales Growth
10 Years:6%
5 Years:7%
3 Years:12%
TTM:-4%
Compounded Profit Growth
10 Years:18%
5 Years:-7%
3 Years:0%
TTM:53%
Stock Price CAGR
10 Years:31%
5 Years:13%
3 Years:28%
1 Year:42%
Return on Equity
10 Years:17%
5 Years:9%
3 Years:7%
Last Year:8%

TVS Srichakra Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital8888888888888
Reserves1331542062754045536317217378179631,0271,067
Borrowings402297383274145315312426351208610662703
Other Liabilities367484428414412515475655520590779757596
Total Liabilities9119421,0259709691,3911,4261,8091,6161,6222,3592,4532,373
Fixed Assets248278344382384532620662687666708905981
CWIP22312018446326344863226145152
Investments11014949689797101254255255
Other Assets6406326615694937487111,0167857931,1711,149985
Total Assets9119421,0259709691,3911,4261,8091,6161,6222,3592,4532,373

TVS Srichakra Ltd Reserves and Borrowings Chart

TVS Srichakra Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 80187142444006418564299307-62206
Cash from Investing Activity -1548-89-84-120-215-102-120-136-92-282-202
Cash from Financing Activity 78-15938-158-271149-7952-169-2153480
Net Cash Flow535-3729-35-4-5144

TVS Srichakra Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days575062382938415136463427
Inventory Days1249474746313895123135149198161
Days Payable1041157752346750837010210285
Cash Conversion Cycle7728585958109869110193131102
Working Capital Days563042261951476052477247
ROCE %24%16%23%30%50%32%22%18%11%12%7%9%

TVS Srichakra Ltd Financial Efficiency Indicators Chart

TVS Srichakra Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters45.36%45.36%45.36%45.36%45.36%45.36%45.37%45.58%45.70%45.70%45.70%45.70%
FIIs1.49%1.97%2.32%2.31%2.10%1.88%1.41%1.20%1.08%1.01%1.11%1.16%
DIIs5.26%2.97%0.65%0.30%0.03%0.03%0.02%0.05%0.36%0.49%2.77%5.04%
Public47.88%49.70%51.67%52.03%52.51%52.72%53.21%53.17%52.85%52.80%50.41%48.07%
No. of Shareholders31,61029,99529,74129,52029,26529,25828,05427,05126,68627,24926,66625,383

TVS Srichakra Ltd Shareholding Pattern Chart

No. of TVS Srichakra Ltd Shareholders

TVS Srichakra Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Quant Small Cap Fund2374710.67105.23
Quant Value Fund1120734.4549.66
ITI ELSS Tax Saver Fund72891.213.23

TVS Srichakra Ltd ROCE Trend

TVS Srichakra Ltd EPS Trend

TVS Srichakra Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)101.8556.7796.54107.53134.43
Diluted EPS (Rs.)101.8556.7796.54107.53134.43
Cash EPS (Rs.)221.10160.74231.89238.17245.48
Book Value[Excl.RevalReserv]/Share (Rs.)1349.481266.961076.45972.41950.73
Book Value[Incl.RevalReserv]/Share (Rs.)1349.481266.961076.45972.41950.73
Revenue From Operations / Share (Rs.)3896.833300.522531.612746.403173.60
PBDIT / Share (Rs.)310.83226.24305.30294.36357.39
PBIT / Share (Rs.)191.33122.05169.78163.59246.72
PBT / Share (Rs.)132.4377.18127.64114.14200.12
Net Profit / Share (Rs.)101.5956.5596.37107.40134.82
NP After MI And SOA / Share (Rs.)101.8156.7596.50107.49134.39
PBDIT Margin (%)7.976.8512.0510.7111.26
PBIT Margin (%)4.903.696.705.957.77
PBT Margin (%)3.392.335.044.156.30
Net Profit Margin (%)2.601.713.803.914.24
NP After MI And SOA Margin (%)2.611.713.813.914.23
Return on Networth / Equity (%)7.544.478.9611.0514.13
Return on Capital Employeed (%)10.076.2212.3612.5120.37
Return On Assets (%)3.171.844.555.095.68
Long Term Debt / Equity (X)0.310.370.120.170.06
Total Debt / Equity (X)0.640.620.170.440.57
Asset Turnover Ratio (%)1.241.231.161.201.48
Current Ratio (X)1.061.311.271.191.05
Quick Ratio (X)0.280.360.520.500.48
Inventory Turnover Ratio (X)2.252.562.352.613.69
Dividend Payout Ratio (NP) (%)16.0052.840.0055.8729.75
Dividend Payout Ratio (CP) (%)7.3618.630.0025.2016.31
Earning Retention Ratio (%)84.0047.160.0044.1370.25
Cash Earning Retention Ratio (%)92.6481.370.0074.8083.69
Interest Coverage Ratio (X)6.015.487.305.957.67
Interest Coverage Ratio (Post Tax) (X)3.102.463.313.173.89
Enterprise Value (Cr.)2600.441817.221498.35998.862080.98
EV / Net Operating Revenue (X)0.870.710.770.470.85
EV / EBITDA (X)10.9210.496.414.437.60
MarketCap / Net Operating Revenue (X)0.650.480.700.320.69
Retention Ratios (%)83.9947.150.0044.1270.24
Price / BV (X)1.891.261.650.912.31
Price / Net Operating Revenue (X)0.650.480.700.320.69
EarningsYield0.030.030.050.120.06

TVS Srichakra Ltd Profitability Ratios (%)

TVS Srichakra Ltd Liquidity Ratios

TVS Srichakra Ltd Liquidity Ratios (%)

TVS Srichakra Ltd Interest Coverage Ratios (X)

TVS Srichakra Ltd Valuation Ratios

Fair Value / Intrinsic Value of TVS Srichakra Ltd

Fair Value: ₹3621.78

The stock is overvalued by 17.69% compared to the current price ₹4400

*Investments are subject to market risks

Strength and Weakness of TVS Srichakra Ltd

StrengthWeakness
  1. The stock has a high average ROCE of 21.17%, which is a positive sign.
  2. The company has higher reserves (591.38 cr) compared to borrowings (391.38 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.62 cr) and profit (124.62 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 178.69 and average Dividend Yield of 5.80%.
  2. The stock has a high average Working Capital Days of 45.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 82.75, which may not be favorable.

Should I Buy TVS Srichakra Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in TVS Srichakra Ltd:
    1. Net Profit Margin: 2.60%
      • 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: 10.07% (Industry Average ROCE: 8.71%)
      • 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. Interest Coverage Ratio (Post Tax): 3.10
      • 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.
    4. Quick Ratio: 0.28
      • 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.
    5. ✗ Stock P/E: 29.2 (Industry average Stock P/E: 27.33)
      • 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.
    6. ✓ Total Debt / Equity: 0.64
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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