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 Analysis

High growth potential average dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 532343's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-10.5%

532343

-3.5%

IN Auto

-1.1%

IN Market


1 Year Return

-44.9%

532343

-45.3%

IN Auto

-31.7%

IN Market

Return vs Industry: 532343 matched the Indian Auto industry which returned -45.3% over the past year.

Return vs Market: 532343 underperformed the Indian Market which returned -31.7% over the past year.


Shareholder returns

532343IndustryMarket
7 Day-10.5%-3.5%-1.1%
30 Day-35.9%-34.3%-25.1%
90 Day-40.7%-43.1%-30.6%
1 Year-44.4%-44.9%-44.1%-45.3%-30.3%-31.7%
3 Year-42.8%-43.9%-50.6%-52.4%-20.1%-24.4%
5 Year8.3%4.1%-38.4%-41.3%-11.0%-15.7%

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 compared to its fair value and its price relative to the market?

18.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532343 (₹265.65) is trading above our estimate of fair value (₹117.77)

Significantly Below Fair Value: 532343 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532343 is poor value based on its PE Ratio (18.3x) compared to the Auto industry average (12.8x).

PE vs Market: 532343 is poor value based on its PE Ratio (18.3x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 532343 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 532343 is overvalued based on its PB Ratio (3.8x) compared to the IN Auto industry average (1.6x).


Next Steps

Future Growth

How is TVS Motor forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532343's forecast earnings growth (29.4% per year) is above the savings rate (6.5%).

Earnings vs Market: 532343's earnings (29.4% per year) are forecast to grow faster than the Indian market (19.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 532343's revenue (10% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: 532343's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532343's Return on Equity is forecast to be high in 3 years time (26%)


Next Steps

Past Performance

How has TVS Motor performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532343 has high quality earnings.

Growing Profit Margin: 532343's current net profit margins (3.5%) are lower than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: 532343's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: 532343's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532343 had negative earnings growth (-0.4%) over the past year, making it difficult to compare to the Auto industry average (0%).


Return on Equity

High ROE: 532343's Return on Equity (19.6%) is considered low.


Next Steps

Financial Health

How is TVS Motor's financial position?


Financial Position Analysis

Short Term Liabilities: 532343's short term assets (₹86.2B) do not cover its short term liabilities (₹90.2B).

Long Term Liabilities: 532343's short term assets (₹86.2B) exceed its long term liabilities (₹49.8B).


Debt to Equity History and Analysis

Debt Level: 532343's debt to equity ratio (277.3%) is considered high.

Reducing Debt: 532343's debt to equity ratio has increased from 79.7% to 277.3% over the past 5 years.

Debt Coverage: 532343's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 532343's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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

1.32%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532343's dividend (1.32%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: 532343's dividend (1.32%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: 532343's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532343's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.1%), 532343's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 532343's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.6yrs

Average management tenure


CEO

K. Radhakrishnan (56yo)

no data

Tenure

₹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

Compensation vs Market: K.'s total compensation ($USD1.09M) is above average for companies of similar size in the Indian market ($USD660.18K).

Compensation vs Earnings: K.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Venu Srinivasan
Chairman & MD17.75yrs₹237.72m0.54% 682.7m
K. Radhakrishnan
Presidentno data₹83.01m0.00063% 795.1k
V. Venu
Joint MD & Whole Time Director7.17yrs₹174.20mno data
K. Desikan
Chief Financial Officer2.42yrs₹16.76m0.000050% 63.1k
K. Srinivasan
Compliance Officer & Company Secretary11.25yrs₹3.73mno data
Varghese Thomas
Vice President of Corporate Communicationsno datano datano data
Arvind Pangaonkar
Head of Racing Teamno data₹2.80mno data
Puthenvittil Mathew
Executive Vice Presidentno data₹650.88kno data
Subramaniam Devarajan
Senior Vice President of Production Engineeringno datano datano data
M. Varadarajan
Senior Vice Presidentno data₹3.79mno data

5.6yrs

Average Tenure

60.5yo

Average Age

Experienced Management: 532343's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Venu Srinivasan
Chairman & MD17.75yrs₹237.72m0.54% 682.7m
K. Radhakrishnan
Presidentno data₹83.01m0.00063% 795.1k
V. Venu
Joint MD & Whole Time Director7.17yrs₹174.20mno data
Harihara Lakshmanan
Non-Executive & Non-Independent Director20yrs₹260.00k0.012% 14.8m
T. Kannan
Independent Non-Executive Director20.25yrs₹2.72m0.0010% 1.3m
Chittranjan Dua
Independent Non-Executive Director18.33yrs₹2.76mno data
Prince Asirvatham
Independent Non-Executive Director11yrs₹2.68m0.00021% 265.0k
R. Ramakrishnan
Independent Non-Executive Director11.08yrs₹2.80m0.023% 28.7m
Lakshmi Venu
Non-Executive & Non-Independent Director5.58yrs₹100.00kno data
Hemant Singh
Independent Non-Executive Director7.17yrs₹2.12mno data

11.0yrs

Average Tenure

67.5yo

Average Age

Experienced Board: 532343's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹126.207b
  • Shares outstanding: 475.09m
  • Website: https://www.tvsmotor.com

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 Parts, Automotive Components, Financial Services, and Others segments. The company offers motorcycles under the Apache, Radeon, Victor, StaR City+, and Sport names; scooters under the Ntorq, Jupiter, Wego, Scooty Zest 110, and Scooty Pep + names; mopeds under the XL 100, XL 100 Comfort, XL 100 Heavy Duty, and XL i-Touch start names; and three wheelers. It also develops residential projects; and provides financing for two-wheelers. The company also exports its products. TVS Motor Company Limited distributes its products through a network of authorized dealers. The company was incorporated in 1992 and is based in Chennai, India. TVS Motor Company Limited is a subsidiary of Sundaram-Clayton Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 14:07
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.