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TVS Motor

NSEI:TVSMOTOR
Snowflake Description

Average dividend payer with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TVSMOTOR
NSEI
₹246B
Market Cap
  1. Home
  2. IN
  3. Automobiles
Company description

TVS Motor Company Limited, together with its subsidiaries, manufactures and sells automotive vehicles and components, spare parts, and accessories in India and internationally. The last earnings update was 251 days ago. More info.


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TVSMOTOR Share Price and Events
7 Day Returns
7%
NSEI:TVSMOTOR
4.1%
IN Auto
1.7%
IN Market
1 Year Returns
-23.1%
NSEI:TVSMOTOR
-19%
IN Auto
0.1%
IN Market
TVSMOTOR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
TVS Motor (TVSMOTOR) 7% 8.3% -3.2% -23.1% 59.6% 488.7%
IN Auto 4.1% 6% 3.6% -19% 16.3% 60.6%
IN Market 1.7% 2.7% 5.8% 0.1% 41.6% 73.3%
1 Year Return vs Industry and Market
  • TVSMOTOR underperformed the Auto industry which returned -19% over the past year.
  • TVSMOTOR underperformed the Market in India which returned 0.1% over the past year.
Price Volatility
TVSMOTOR
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of TVS Motor to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for TVS Motor.

NSEI:TVSMOTOR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 30 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 14.4%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:TVSMOTOR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Auto Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.575 (1 + (1- 35%) (28.21%))
0.786
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.8 * 8.6%)
14.43%

Discounted Cash Flow Calculation for NSEI:TVSMOTOR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for TVS Motor is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:TVSMOTOR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.43%)
2019 5,140.58 Analyst x15 4,492.34
2020 7,034.65 Analyst x17 5,372.33
2021 8,885.76 Analyst x17 5,930.28
2022 11,046.00 Analyst x1 6,442.37
2023 12,973.36 Est @ 17.45% 6,612.31
2024 14,851.76 Est @ 14.48% 6,615.13
2025 16,693.42 Est @ 12.4% 6,497.80
2026 18,520.55 Est @ 10.95% 6,299.91
2027 20,359.01 Est @ 9.93% 6,051.98
2028 22,234.82 Est @ 9.21% 5,776.10
Present value of next 10 years cash flows ₹60,090.54
NSEI:TVSMOTOR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹22,234.82 × (1 + 7.55%) ÷ (14.43% – 7.55%)
₹347,580.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹347,580.62 ÷ (1 + 14.43%)10
₹90,293.52
NSEI:TVSMOTOR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹60,090.54 + ₹90,293.52
₹150,384.06
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹150,384.06 / 475.09
₹316.54
NSEI:TVSMOTOR Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:TVSMOTOR represents 1.00029x of BSE:532343
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00029x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 316.54 x 1.00029
₹316.63
Value per share (INR) From above. ₹316.63
Current discount Discount to share price of ₹518.35
= -1 x (₹518.35 - ₹316.63) / ₹316.63
-63.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of TVS Motor is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for TVS Motor's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are TVS Motor's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:TVSMOTOR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹13.73
BSE:532343 Share Price ** BSE (2019-04-18) in INR ₹518.2
India Auto Industry PE Ratio Median Figure of 9 Publicly-Listed Auto Companies 22.05x
India Market PE Ratio Median Figure of 2,735 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of TVS Motor.

NSEI:TVSMOTOR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532343 Share Price ÷ EPS (both in INR)

= 518.2 ÷ 13.73

37.74x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does TVS Motor's expected growth come at a high price?
Raw Data
NSEI:TVSMOTOR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 37.74x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts
17.2%per year
India Auto Industry PEG Ratio Median Figure of 7 Publicly-Listed Auto Companies 2.31x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.33x

*Line of best fit is calculated by linear regression .

NSEI:TVSMOTOR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 37.74x ÷ 17.2%

2.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TVS Motor is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on TVS Motor's assets?
Raw Data
NSEI:TVSMOTOR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹56.35
BSE:532343 Share Price * BSE (2019-04-18) in INR ₹518.2
India Auto Industry PB Ratio Median Figure of 12 Publicly-Listed Auto Companies 3.72x
India Market PB Ratio Median Figure of 3,626 Publicly-Listed Companies 1.12x
NSEI:TVSMOTOR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532343 Share Price ÷ Book Value per Share (both in INR)

= 518.2 ÷ 56.35

9.2x

* Primary Listing of TVS Motor.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • TVS Motor is overvalued based on assets compared to the IN Auto industry average.
X
Value checks
We assess TVS Motor's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto industry average (and greater than 0)? (1 check)
  5. TVS Motor has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is TVS Motor expected to perform in the next 1 to 3 years based on estimates from 30 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is TVS Motor expected to grow at an attractive rate?
  • TVS Motor's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • TVS Motor's earnings growth is positive but not above the India market average.
  • TVS Motor's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:TVSMOTOR Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:TVSMOTOR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 30 Analysts 17.2%
NSEI:TVSMOTOR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 30 Analysts 11.3%
India Auto Industry Earnings Growth Rate Market Cap Weighted Average 19.9%
India Auto Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
India Market Earnings Growth Rate Market Cap Weighted Average 18.7%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:TVSMOTOR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:TVSMOTOR Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 294,113 1
2021-03-31 235,111 16,978 10,725 26
2020-03-31 210,478 14,596 9,492 30
2019-03-31 183,285 12,529 7,352 31
NSEI:TVSMOTOR Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 164,211 3,087 6,524
2017-03-31 125,937 6,894 5,112
2016-03-31 113,771 9,363 4,292

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • TVS Motor's earnings are expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).
  • TVS Motor's revenue is expected to grow by 11.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:TVSMOTOR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below

All data from TVS Motor Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:TVSMOTOR Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31
2021-03-31 22.83 30.90 17.04 27.00
2020-03-31 19.99 27.00 16.20 28.00
2019-03-31 15.44 18.70 14.00 28.00
NSEI:TVSMOTOR Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 13.73
2017-03-31 10.76
2016-03-31 9.03

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • TVS Motor is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess TVS Motor's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
TVS Motor has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has TVS Motor performed over the past 5 years?

  • TVS Motor's last earnings update was 251 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare TVS Motor's growth in the last year to its industry (Auto).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if TVS Motor's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare TVS Motor's 1-year earnings growth to the 5-year average due to insufficient past data.
  • TVS Motor's earnings growth has exceeded the IN Auto industry average in the past year (27.6% vs 19.5%).
Earnings and Revenue History
TVS Motor's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from TVS Motor Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:TVSMOTOR Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 164,211.40 6,523.50 18,240.30
2017-03-31 125,936.50 5,112.40 14,219.60
2016-03-31 113,770.60 4,291.50 13,882.20
2015-03-31 102,557.90 3,282.60 12,559.90
2014-03-31 83,835.90 1,863.00 14,608.20
2013-03-31 75,104.70 1,975.40 12,405.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • TVS Motor used its assets less efficiently than the IN Auto industry average last year based on Return on Assets.
  • TVS Motor has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess TVS Motor's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
TVS Motor has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is TVS Motor's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up TVS Motor's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • TVS Motor's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • TVS Motor's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of TVS Motor's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from TVS Motor Company Filings, last reported 1 year ago.

NSEI:TVSMOTOR Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 28,582.80 69,275.40 1,685.20
2017-03-31 22,248.20 13,108.00 471.20
2016-03-31 18,179.70 10,914.70 491.70
2015-03-31 13,246.30 11,190.80 278.10
2014-03-31 11,608.30 7,277.00 984.70
2013-03-31 9,051.70 10,681.20 796.00
  • TVS Motor's level of debt (242.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (117.8% vs 242.4% today).
  • Debt is not well covered by operating cash flow (4.5%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 4.1x coverage).
X
Financial health checks
We assess TVS Motor's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. TVS Motor has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.68%
Current annual income from TVS Motor dividends. Estimated to be 0.88% next year.
If you bought ₹2,000 of TVS Motor shares you are expected to receive ₹14 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • TVS Motor's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.49%).
  • TVS Motor's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:TVSMOTOR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 30 Analyst Estimates (S&P Global) See Below
India Auto Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.4%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:TVSMOTOR Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31
2021-03-31 4.74 21.00
2020-03-31 4.35 21.00
2019-03-31 3.68 21.00
NSEI:TVSMOTOR Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-03-11 3.500 0.723
2018-10-23 3.400 0.647
2018-02-26 3.300 0.565
2017-11-01 3.250 0.454
2017-03-06 2.500 0.456
2016-10-27 2.750 0.717
2016-03-14 2.500 0.794
2016-01-29 2.150 0.760
2015-04-29 2.300 0.919
2015-02-03 1.400 0.520
2014-04-29 1.500 0.810
2013-10-25 1.250 1.808
2013-04-30 1.200 3.449
2013-02-01 1.300 3.483
2012-05-24 1.400 3.575
2011-07-29 1.100 2.207
2011-04-29 1.000 1.899
2011-01-20 1.000 1.798
2010-07-21 0.500 0.692
2010-01-21 0.700 1.606
2009-06-26 0.350 1.261
2009-04-20 0.350 1.742

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of TVS Motor's earnings are paid to the shareholders as a dividend.
  • 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 (4.8x coverage).
X
Income/ dividend checks
We assess TVS Motor's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can TVS Motor afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. TVS Motor has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
K. Radhakrishnan
COMPENSATION ₹48,528,000
AGE 55
CEO Bio

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 Director of TVS Motor Company Limited since October 23, 2018. He began his career in Sundaram Clayton in 1986 as a Management Trainee (1986) and rose to become the head of Business Planning and TQM for the group. In this role he led SundaramClayton to win the prestigious Deming Prize, becoming the first Indian company to do so. In 2004, he was promoted as Executive Vice President of TVS Motor and in 2006 became its President. Under his leadership TVS Motor has become the third largest selling two wheeler brand in India. Mr. Radhakrishnan has led the expansion of TVS Motor into over 60 international markets. Mr. Radhakrishnan is known for his focus on quality, passion for customers, strategic planning and eye for technology. Mr. Radhakrishnan holds a Master’s degree from the Indian Institute of Technology (IIT), Chennai and has also undergone a Management Education Program from the Indian Institute of Management (IIM), Ahmedabad.

CEO Compensation
  • K.'s compensation has been consistent with company performance over the past year.
  • K.'s remuneration is about average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the TVS Motor management team in years:

4.6
Average Tenure
61.5
Average Age
  • The tenure for the TVS Motor management team is about average.
Management Team

Venu Srinivasan

TITLE
Chairman & MD
COMPENSATION
₹233M
AGE
66

K. Radhakrishnan

TITLE
President
COMPENSATION
₹49M
AGE
55

V. Venu

TITLE
Joint MD & Whole Time Director
COMPENSATION
₹140M
AGE
29
TENURE
4.6 yrs

K. Srinivasan

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹3M
TENURE
10.3 yrs

K. Desikan

TITLE
Chief Financial Officer
COMPENSATION
₹2M
AGE
54
TENURE
1.4 yrs

B. Srinath

TITLE
General Manager of Operations
COMPENSATION
₹3M
AGE
63

Varghese Thomas

TITLE
Vice President of Corporate Communications

Arvind Pangaonkar

TITLE
Head of Racing Team
COMPENSATION
₹3M
AGE
73

Puthenvittil Mathew

TITLE
Executive Vice President
COMPENSATION
₹651K
AGE
68

Subramaniam Devarajan

TITLE
Senior Vice President of Production Engineering
AGE
60
Board of Directors Tenure

Average tenure and age of the TVS Motor board of directors in years:

10
Average Tenure
66.5
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.
Board of Directors

Venu Srinivasan

TITLE
Chairman & MD
COMPENSATION
₹233M
AGE
66
TENURE
16.8 yrs

K. Radhakrishnan

TITLE
President
COMPENSATION
₹49M
AGE
55
TENURE
0.5 yrs

V. Venu

TITLE
Joint MD & Whole Time Director
COMPENSATION
₹140M
AGE
29
TENURE
6.2 yrs

T. Kannan

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
65
TENURE
19.3 yrs

R. Ramakrishnan

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
72
TENURE
10.1 yrs

Harihara Lakshmanan

TITLE
Non-Executive & Non-Independent Director
COMPENSATION
₹260K
AGE
85
TENURE
19 yrs

Chittranjan Dua

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
67
TENURE
17.3 yrs

Prince Asirvatham

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
69
TENURE
10 yrs

Hemant Singh

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
68
TENURE
6.2 yrs

Lakshmi Venu

TITLE
Non-Executive & Non-Independent Director
COMPENSATION
₹80K
AGE
35
TENURE
4.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess TVS Motor's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. TVS Motor has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Does TVS Motor Company Limited’s (NSE:TVSMOTOR) 25% ROCE Say About The Business?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

If You Had Bought TVS Motor (NSE:TVSMOTOR) Shares Five Years Ago You'd Have Made 467%

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, TVS Motor achieved compound earnings per share (EPS) growth of 27% per year. … This EPS growth is slower than the share price growth of 42% per year, over the same period.

Simply Wall St -

What Do Analysts Think About TVS Motor Company Limited's (NSE:TVSMOTOR) Future?

Help shape the future of investing tools and you could win a $250 gift card! … The latest earnings release TVS Motor Company Limited's (NSE:TVSMOTOR) announced in March 2018a … company

Simply Wall St -

What Should Investors Know About TVS Motor Company Limited's (NSE:TVSMOTOR) Future?

Since TVS Motor Company Limited (NSE:TVSMOTOR) released its earnings in March 2018,. … with earnings expected to grow by 16% in the upcoming year … the higher past 5-year average growth rate of 25%

Simply Wall St -

Here's What TVS Motor Company Limited's (NSE:TVSMOTOR) P/E Is Telling Us

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at TVS Motor Company Limited's (NSE:TVSMOTOR) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

TVS Motor Company Limited (NSE:TVSMOTOR): What Are Investors Earning On Their Capital?

and looking to gauge the potential return on investment in TVS Motor Company Limited (NSE:TVSMOTOR). … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … To understand TVS Motor’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Should TVS Motor Company Limited (NSE:TVSMOTOR) Be Your Next Stock Pick?

TVS Motor Company Limited (NSE:TVSMOTOR) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of TVSMOTOR, it

Simply Wall St -

Will TVS Motor Company Limited's (NSE:TVSMOTOR) Earnings Grow In The Years Ahead?

In March 2018, TVS Motor Company Limited (NSE:TVSMOTOR) announced its most recent earnings update, whicha … company

Simply Wall St -

Want To Invest In TVS Motor Company Limited (NSE:TVSMOTOR) Today? Read This First

TVS Motor Company Limited (NSE:TVSMOTOR) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of ₹516.1 is based on unrealistic expectations. … See our latest analysis for TVS Motor? … TVS Motor is poised for extremely high earnings growth in the near future

Simply Wall St -

Why You Should Look Beyond TVS Motor Company Limited's (NSE:TVSMOTOR) Growth

TVS Motor Company Limited (NSE:TVSMOTOR)'s outlook is one of buoyant sentiment as it continues to post exciting top-line revenue growth. … However, my main concerns are around how the company is managing its balance sheet, and whether their current financial status is sustainable. … I will touched on some key aspects you should know on a high level, around its financials and growth prospects going forward

Simply Wall St -

Company Info

Description

TVS Motor Company Limited, together with its subsidiaries, manufactures and sells automotive vehicles and components, spare parts, and accessories in India and internationally. It operates through Automotive Vehicles and Parts, Automotive Components, Financial Services, and Others segments. The company offers a range of two-wheelers, including motorcycles under the Apache, Victor, StaR City+, Sport, and Max4R names; scooters under the Ntorq, Jupiter, Wego, Scooty Zest 110, and Scooty Pep + names; mopeds under the XL 100, XL 100 Comfort, and XL 100 Heavy Duty names; and three wheelers. It is also involved in the development of housing projects, such as apartments and villas; and provision of financial services. 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.

Details
Name: TVS Motor Company Limited
TVSMOTOR
Exchange: NSEI
Founded: 1992
₹245,548,774,870
475,087,114
Website: http://www.tvsmotor.com
Address: TVS Motor Company Limited
Jayalakshmi Estates,
No. 29, Haddows Road,
Chennai,
Tamil Nadu, 600006,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532343 Equity Shares Mumbai Stock Exchange IN INR 15. Nov 2000
NSEI TVSMOTOR Equity Shares National Stock Exchange of India IN INR 15. Nov 2000
Number of employees
Current staff
Staff numbers
0
TVS Motor employees.
Industry
Motorcycle Manufacturers
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 12:51
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/12
Last earnings filing: 2018/08/10
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.