BSE:532343

Stock Analysis Report

Executive Summary

TVS Motor Company Limited, together with its subsidiaries, manufactures and sells automotive vehicles and components, spare parts, and accessories in India.

Snowflake

Fundamentals

Average dividend payer with limited growth.

Risks

  • TVS Motor has significant price volatility in the past 3 months.

Share Price & News

How has TVS Motor's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.0%

BSE:532343

-1.5%

IN Auto

-0.7%

IN Market


1 Year Return

-26.9%

BSE:532343

-32.9%

IN Auto

-12.1%

IN Market

532343 outperformed the Auto industry which returned -33% over the past year.

532343 underperformed the Market in India which returned -12.1% over the past year.


Share holder returns

532343IndustryMarket
7 Day-3.0%-1.5%-0.7%
30 Day-9.0%-3.5%-4.6%
90 Day-19.8%-13.4%-4.3%
1 Year-26.4%-26.9%-31.9%-32.9%-10.3%-12.1%
3 Year23.1%21.0%-19.9%-22.5%18.9%12.8%
5 Year120.6%113.3%6.1%1.0%37.6%24.7%

Price Volatility Vs. Market

How volatile is TVS Motor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is TVS Motor undervalued based on future cash flows and its price relative to the stock market?

25.75x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

TVS Motor's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

TVS Motor's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

TVS Motor is overvalued based on earnings compared to the IN Auto industry average.

TVS Motor is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

TVS Motor is poor value based on expected growth next year.


Price Based on Value of Assets

TVS Motor is overvalued based on assets compared to the IN Auto industry average.


Next Steps

Future Growth

How is TVS Motor expected to perform in the next 1 to 3 years based on estimates from 32 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

TVS Motor's revenue is expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).

TVS Motor's earnings are expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).

TVS Motor's revenue growth is positive but not above the India market average.

TVS Motor's earnings growth is positive but not above the India market average.

TVS Motor's earnings growth is expected to exceed the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

TVS Motor is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has TVS Motor performed over the past 5 years?

16.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

TVS Motor's year on year earnings growth rate has been positive over the past 5 years.

TVS Motor's 1-year earnings growth is less than its 5-year average (4.6% vs 16.5%)

TVS Motor's earnings growth has exceeded the IN Auto industry average in the past year (4.6% vs 4%).


Return on Equity

Whilst TVS Motor has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

TVS Motor used its assets less efficiently than the IN Auto industry average last year based on Return on Assets.


Return on Capital Employed

TVS Motor's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is TVS Motor's financial position?


Financial Position Analysis

TVS Motor is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

TVS Motor's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

TVS Motor's level of debt (272.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (68.7% vs 272.2% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

What is TVS Motor's current dividend yield, its reliability and sustainability?

1.16%

Expected Dividend Yield


Dividend Yield and Payments Analysis

TVS Motor's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

TVS Motor's dividend is below the markets top 25% of dividend payers in India (2.52%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (4.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).


Next Steps

Management

What is the CEO of TVS Motor's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

K. Radhakrishnan (56yo)

₹83,008,000

Compensation

Mr. K. N. Radhakrishnan, M. Tech. has been the President of TVS Motor Company Limited since April 1, 2006 and serves as its Chief Executive Officer. Mr. Radhakrishnan serves as Additional Whole-Time Direct ...


CEO Compensation Analysis

K.'s remuneration is higher than average for companies of similar size in India.

K.'s compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

4.9yrs

Average Tenure

60.5yo

Average Age

The tenure for the TVS Motor management team is about average.


Board Age and Tenure

10.4yrs

Average Tenure

67.5yo

Average Age

The average tenure for the TVS Motor board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • K. Srinivasan

    Compliance Officer & Company Secretary

    • Tenure: 10.6yrs
    • Compensation: 3.73m
  • Puthenvittil Mathew (69yo)

    Executive Vice President

    • Compensation: 650.88k
  • V. Venu (30yo)

    Joint MD & Whole Time Director

    • Tenure: 4.9yrs
    • Compensation: 174.20m
  • Varghese Thomas

    Vice President of Corporate Communications

  • Venu Srinivasan (67yo)

    Chairman & MD

    • Compensation: 237.72m
  • K. Desikan (55yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: 16.76m
  • M. Varadarajan (60yo)

    Senior Vice President

    • Compensation: 3.79m
  • K. Radhakrishnan (56yo)

    President

    • Compensation: 83.01m
  • Arvind Pangaonkar (74yo)

    Head of Racing Team

    • Compensation: 2.80m
  • Subramaniam Devarajan (61yo)

    Senior Vice President of Production Engineering


Board Members

  • Lakshmi Venu (36yo)

    Non-Executive & Non-Independent Director

    • Tenure: 4.9yrs
    • Compensation: 100.00k
  • Hemant Singh (69yo)

    Independent Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: 2.12m
  • Harihara Lakshmanan (86yo)

    Non-Executive & Non-Independent Director

    • Tenure: 19.3yrs
    • Compensation: 260.00k
  • Prince Asirvatham (70yo)

    Independent Non-Executive Director

    • Tenure: 10.3yrs
    • Compensation: 2.68m
  • V. Venu (30yo)

    Joint MD & Whole Time Director

    • Tenure: 6.5yrs
    • Compensation: 174.20m
  • Venu Srinivasan (67yo)

    Chairman & MD

    • Tenure: 17.1yrs
    • Compensation: 237.72m
  • Chittranjan Dua (68yo)

    Independent Non-Executive Director

    • Tenure: 17.7yrs
    • Compensation: 2.76m
  • K. Radhakrishnan (56yo)

    President

    • Tenure: 0.8yrs
    • Compensation: 83.01m
  • T. Kannan (66yo)

    Independent Non-Executive Director

    • Tenure: 19.6yrs
    • Compensation: 2.72m
  • R. Ramakrishnan (73yo)

    Independent Non-Executive Director

    • Tenure: 10.4yrs
    • Compensation: 2.80m

Company Information

TVS Motor Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TVS Motor Company Limited
  • Ticker: 532343
  • Exchange: BSE
  • Founded: 1992
  • Industry: motorcycle manufacturers
  • Sector: automobiles
  • Market Cap: ₹179.132b
  • Shares outstanding: 475.09m
  • Website: Click here

Location

  • TVS Motor Company Limited
  • Chaitanya
  • No. 12, Khader Nawaz Khan Road
  • Chennai
  • Tamil Nadu
  • 600034
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532343BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2000
TVSMOTORNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2000

Biography

TVS Motor Company Limited, together with its subsidiaries, manufactures and sells automotive vehicles and components, spare parts, and accessories in India. It operates through Automotive Vehicles and Part ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:43
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.