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TVS Motor Company Ltd logo

TVS Motor Company Ltd

NSE: TVSMOTOR BSE: 532343

3758.50

(1.23)%

Sun, 08 Feb 2026, 06:29 pm

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3.8x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (5.4x coverage).
  • TVS Motor's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • TVS Motor's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • TVS Motor's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • TVS Motor is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN Auto industry average.
  • An improvement in TVS Motor's performance (ROE) is expected over the next 3 years.
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Cons

  • TVS Motor's earnings are expected to grow by 10.7% yearly, however this is not considered high growth (20% yearly).
  • TVS Motor's earnings growth is positive but not above the India market average.
  • TVS Motor's earnings are expected to decrease over the next year.
  • TVS Motor's net income is expected to increase but not above the 50% threshold in 2 years time.
  • TVS Motor's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • TVS Motor's revenue is expected to grow by 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.

health

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Pros

  • TVS Motor is profitable, therefore cash runway is not a concern.
  • TVS Motor is profitable, therefore cash runway is not a concern.
  • TVS Motor's cash and other short term assets cover its long term commitments.
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Cons

  • TVS Motor's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not well covered by operating cash flow (3.2%, less than 20% of total debt).
  • Debt is not covered by short term assets, assets are 0.8x debt.
  • The level of debt compared to net worth has increased over the past 5 years (84.3% vs 320.3% today).
  • Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).
  • TVS Motor's level of debt (320.3%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the TVS Motor board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • The average tenure for the TVS Motor management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • 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 fell less than 20%.

misc

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Pros

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    Cons

    • TVS Motor is covered by less than 3 analysts.
    • TVS Motor has significant price volatility in the past 3 months.

    past

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    Pros

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

    • TVS Motor's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • TVS Motor used its assets less efficiently than the IN Auto industry average last year based on Return on Assets.
    • TVS Motor's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • TVS Motor has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • TVS Motor's 1-year earnings growth is negative, it can't be compared to the IN Auto industry average.

    value

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    Pros

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      Cons

      • 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%).
      • TVS Motor is overvalued based on assets compared to the IN Auto industry average.
      • TVS Motor is poor value based on expected growth next year.
      • 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.
      • TVSMOTOR underperformed the Auto industry which returned -17.2% over the past year.
      • TVSMOTOR underperformed the Market in India which returned -14.5% over the past year.
      • NSEI:TVSMOTOR is up 5.4% underperforming the Auto industry which returned 10.7% over the past month.
      • NSEI:TVSMOTOR is up 5.4% underperforming the market in India which returned 8% over the past month.

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