TVS Motor Company Ltd’s fundamental analysis highlights key financial metrics including market capitalisation of ₹1,24,671 crore, PE ratio of 72.9, debt-to-equity ratio of 3.83, and return on equity of 26.6%. These figures reflect the company’s financial health and current market valuation.
Content:
- TVS Motor Company Ltd Overview
- TVS Motor Company Financial Results
- TVS Motor Company Financial Analysis
- TVS Motor Company Company Metrics
- TVS Motor Company Stock Performance
- TVS Motor Company Peer Comparison
- TVS Motor Company Shareholding Pattern
- TVS Company History
- How To Invest In TVS Motor Company Ltd Share?
- TVS Motor Company Limited Fundamental Analysis – FAQs
TVS Motor Company Ltd Overview
The company has a market capitalisation of ₹1,24,671 crore and is listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Currently, the stock is trading 0.02 % below its 52-week high and 98.6% above its 52-week low.
TVS Motor Company Financial Results
TVS Motor Company Ltd’s financial results for FY24 show sales at ₹39,145 crore, up from ₹31,974 crore in FY23. Operating profit increased to ₹5,543 crore with an OPM of 14%. Net profit reached ₹1,779 crore, reflecting growth in profitability and EPS.
- Revenue Trend: The company’s revenue rose from ₹24,355 crore in FY22 to ₹31,974 crore in FY23, and further to ₹39,145 crore in FY24. This upward trend indicates strong market demand and effective sales strategies driving consistent growth.
- Equity and Liabilities: Expenses climbed from ₹21,601 crore in FY22 to ₹27,907 crore in FY23, and further to ₹33,601 crore in FY24. The increase in operating costs reflects expanded business activities and investments in infrastructure and resources.
- Profitability: Operating profit grew from ₹2,755 crore in FY22 to ₹4,067 crore in FY23, reaching ₹5,543 crore in FY24. This improvement, alongside a higher OPM of 14%, highlights the company’s enhanced operational efficiency and cost management.
- Earnings Per Share (EPS): EPS increased significantly from ₹15.93 in FY22 to ₹27.97 in FY23, and further to ₹35.5 in FY24. The substantial rise indicates improved profitability and greater returns for shareholders.
- Return on Net Worth (RoNW): The net profit margin and overall profitability improved, with net profit growing from ₹730.88 crore in FY22 to ₹1,309 crore in FY23, and ₹1,779 crore in FY24. This suggests a strong return on net worth.
- Financial Position: The company’s financial position remains robust, with a significant increase in net profit and EPS over the fiscal years. The growth in both sales and profits indicates solid financial health and operational strength.
TVS Motor Company Financial Analysis
| FY 24 | FY 23 | ||
| Sales | 39,145 | 31,974 | 24,355 |
| Expenses | 33,601 | 27,907 | 21,601 |
| Operating Profit | 5,543 | 4,067 | 2,755 |
| OPM % | 14 | 13 | 11 |
| Other Income | 105.82 | 136.13 | -7.25 |
| EBITDA | 5,649 | 4,205 | 2,788 |
| Interest | 1,928 | 1,368 | 940.22 |
| Depreciation | 975.12 | 858.86 | 742.86 |
| Profit Before Tax | 2,746 | 1,977 | 1,064 |
| Tax % | 33.66 | 31.7 | 31.56 |
| Net Profit | 1,779 | 1,309 | 730.88 |
| EPS | 35.5 | 27.97 | 15.93 |
| Dividend Payout % | 22.54 | 17.88 | 23.54 |
*All values in ₹ Crores
TVS Motor Company Company Metrics
With a market cap of ₹1,24,671 Crores, the company shows impressive growth, boasting a 91.7% 1-year return. However, its high P/E ratio and significant debt raise concerns about valuation and financial leverage.
- Market Cap: A market cap of ₹1,24,671 Cr reflects the company’s substantial market presence and investor confidence in its growth prospects.
- Book Value: The book value of ₹143 per share indicates the net asset value of the company, providing insight into its intrinsic worth.
- Face Value: With a face value of ₹1.00, this nominal value is primarily used for calculating dividends and share splits.
- Turnover: An asset turnover ratio of 1.02 suggests the company effectively generates revenue relative to its assets, indicating operational efficiency.
- PE Ratio: A P/E ratio of 72.9 signals high investor expectations for future earnings growth, but it may suggest overvaluation.
- Debt: The company carries a significant debt of ₹26,006 Crores, with a high debt-to-equity ratio of 3.83, indicating heavy leverage.
- ROE: A strong return on equity (ROE) of 26.6% shows the company’s efficiency in generating profits from shareholders’ equity.
- EBITDA Margin: The EBITDA margin of 25.6% indicates robust profitability before accounting for interest, taxes, depreciation, and amortization.
- Dividend Yield: A low dividend yield of 0.31% reflects minimal returns to shareholders through dividends, focusing on reinvestment for growth.
TVS Motor Company Stock Performance
The table shows the return on investment (ROI) over various periods: 47% over 5 years, 67% over 3 years, and 92% over 1 year. This indicates a strong upward trend in ROI, with the highest return achieved in the shortest period.
| Period | Return on Investment (%) |
| 5 Years | 47% |
| 3 Years | 67% |
| 1 Year | 92% |
Example:
If investor A invested ₹1,00,000 five years ago, the return would be ₹1,47,000, reflecting a 47% increase. For 3 years, an investment of ₹1,00,000 would grow to ₹1,67,000, showing a 67% return. In just one year, a ₹1,00,000 investment would yield ₹1,92,000, highlighting a 92% return.
TVS Motor Company Peer Comparison
TVS Motors, with a market cap of ₹1,23,862.49 Crores, stands out in the automotive sector with a strong 93.73% 1-year return. Despite a high P/E ratio, its performance surpasses many competitors like Hero Motocorp and Eicher Motors.
| S.No. | Name | CMP Rs. | Mar Cap Rs.Cr. | PEG | 3mth return % | 1Yr return % |
| 1 | Eicher Motors | 4733.25 | 129669.03 | 2.44 | 1.1 | 41.77 |
| 2 | TVS Motor Co. | 2605.5 | 123862.49 | 3.96 | 22.44 | 93.73 |
| 3 | Hero Motocorp | 5072.45 | 101511.78 | 10.45 | -1.34 | 68.48 |
| 4 | Ola Electric | 110.9 | 48961.37 | |||
| 5 | Wardwizard Inno. | 53.3 | 1389.5 | 0.64 | 1.87 | 43.43 |
| 6 | Urja Global | 20.03 | 1052.49 | 2.11 | -5.96 | 99.3 |
| 7 | Tunwal E-Motors | 47.4 | 262.12 |
TVS Motor Company Shareholding Pattern
The shareholding pattern of TVS Motor Company Ltd reveals a stable distribution among key stakeholders. Promoters hold a consistent 50.27% stake in June 2024, while FII and DII holdings have increased and decreased respectively with 21.05% and 20.13%. Retail and other investors hold a minor share of 8.54%.
| Jun 2024 | Mar 2024 | Dec 2023 | Sept 2023 | |
| Promoters | 50.27 | 50.27 | 50.27 | 50.27 |
| FII | 21.05 | 20.83 | 19.27 | 18.51 |
| DII | 20.13 | 20.26 | 21.8 | 23.11 |
| Retail & others | 8.56 | 8.64 | 8.67 | 8.11 |
*All values in %
TVS Company History
Founded in 1911 by T.V. Sundaram Iyengar, TVS Group began as a local transport service in Tamil Nadu. Over the years, it evolved into a major conglomerate, expanding into automotive distribution and manufacturing, significantly impacting India’s industrial landscape.
In the 1970s, TVS diversified into two-wheelers with the establishment of TVS Motor Company Ltd. This move marked its entry into the motorcycle and scooter market, building a reputation for reliability and innovation in India’s growing automotive sector.
The 2000s saw TVS expand internationally and venture into new domains like logistics and technology. The group’s adaptive strategy and acquisitions, such as Norton Motorcycles and Swiss E-Mobility Group, highlighted its global ambitions and commitment to innovation.
How To Invest In TVS Motor Company Ltd Share?
Investing in TVS Motor Company Ltd shares is a straightforward process:
- Open a Demat Account: Start by opening a Demat and trading account with a reliable brokerage firm like Alice Blue.
- Complete KYC: Submit necessary documents for KYC verification.
- Fund Your Account: Deposit funds into your trading account.
- Buy Shares: Search for TVS Motor Company Ltd shares and place your buy order.
TVS Motor Company Limited Fundamental Analysis – FAQs
TVS Motor Company Ltd’s fundamental analysis reveals a market capitalisation of ₹1,24,671 crore, a PE ratio of 72.9, a debt-to-equity ratio of 3.83, and a return on equity of 26.6%, indicating its financial health and market valuation.
The market cap of TVS Motor Company Ltd as of August 13, 2024, is approximately ₹1,24,671 crore. This value reflects the company’s strong market position in the Indian auto industry.
TVS Motor Company Limited is an Indian multinational manufacturer of two-wheelers and three-wheelers. It produces motorcycles, scooters, and auto rickshaws, serving both domestic and international markets. The company is part of the TVS Group, a prominent industrial conglomerate.
TVS Motor Company is primarily owned by the TVS Group, with the major ownership held by the TVS family and its associated trusts. The company’s chairman, Venu Srinivasan, and other family members play key roles in its management.
The main shareholders of TVS Motor Company include the TVS family, specifically the TVS Group’s family trust and associates, institutional investors, and public shareholders. Prominent institutional investors and mutual funds also hold significant stakes in the company.
TVS Motor Company operates in the automotive industry, specifically in manufacturing two-wheelers, three-wheelers, and related components. It is a major player in the motorcycle and scooter market, producing a range of vehicles for both domestic and international markets.
To invest in TVS Motor Company Ltd shares, open a brokerage account with Alice Blue, research the company’s financials, and decide on the number of shares to purchase. Place an order through your brokerage platform, monitoring the stock’s performance and market conditions.
Determining if TVS Motor Company is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
