TVS Electronics Limited (TVSELECT) AI Stock Analysis

• Market Cap: ₹7.45B
• Dividend Yield: 0.22%
• Average Volume (3M): 35.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: 9.71%
• EPS Growth: 14.13%
• Country: IN
• Employees: 703
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 0.83
• Shares Outstanding: 18,650,318
• 10 Day Avg. Volume: 13,106
• 30 Day Avg. Volume: 35,177
• PEG Ratio: 0.11
• Price to Book (P/B): 6.67
• Price to Sales (P/S): 1.44
• P/FCF Ratio: -190.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹381.00 ▼(-11.40% Downside)

The score is primarily pressured by weak financial performance—loss-making profitability and strained cash flow—followed by a clearly bearish technical setup with negative momentum and price below key moving averages. Valuation provides limited offset because the negative P/E reflects losses and the dividend yield is minimal.

Positive Factors

Recurring services/AMCs

A meaningful services and support business (AMCs, field service, spares/consumables) creates recurring revenue streams that smooth sales cyclicality of hardware. This durable revenue mix supports customer retention, aftermarket margins and predictable mid-term cash flow.

High gross margin

A near-50% gross margin indicates the company captures strong product/consumable economics, providing a structural buffer to absorb distribution and service costs. That level supports reinvestment in service capability and product development if operating expenses are controlled.

Moderate leverage / stable capital structure

A 0.46 debt/equity and a ~36% equity ratio reflect conservative leverage, limiting refinancing risk and interest burden. This provides balance-sheet flexibility to fund working capital, service network needs, or selective investments over the next several months without excessive distress risk.

Negative Factors

Negative profitability

Negative EBIT and net margins show the company currently cannot convert gross profit into operating or net earnings. Persistent unprofitability constrains retained earnings, limits reinvestment capacity, and undermines long-term shareholder value creation unless expense or pricing dynamics improve.

Weak cash generation / negative FCF growth

Very low OCF-to-net-income and negative FCF growth indicate earnings are not converting into cash. Structurally weak cash generation limits ability to fund capex, expand service operations, or sustain dividends, and increases reliance on external funding for growth initiatives.

Declining EBITDA margin

A falling EBITDA margin signals persistent operating expense pressure or deteriorating mix between higher-margin services and lower-margin hardware. Over months this erodes operating leverage, reduces reinvestment capacity, and makes it harder to convert solid gross margins into sustainable profits.

TVS Electronics Limited Business Overview & Revenue Model

Company Description

TVS Electronics Limited, through its subsidiaries, designs, manufactures, assembles, markets, sells, and services various products in India and internationally. The company operates in two segments, Products & Solutions, and Customer Support Services. It provides dot matrix, thermal receipt, label, mobile, and specialty printers; mechanical and membrane keyboards; mouse products; barcode scanners, currency counters, surveillance cameras and recorders, touch pos systems, handheld devices, electronic cash registers, and other products; payment devices and weighing scales; and personal and productivity products. The company also offers break fix, repair and refurbishment, engineering, installation, demo, protection plan, IT infra management, remote tech support, call center, e-waste management, and other services; warranty management, and parts management and warehousing services. It serves governance and back office, oil, mining, manufacturing, BFSI, food and beverage, retail, hospitality, ticketing, warehousing, shipping and logistics, and transport industries, as well as railway sector, small offices, homes, and others. The company was founded in 1986 and is headquartered in Chennai, India. TVS Electronics Limited is a subsidiary of TVS Investments Private Limited.

How the Company Makes Money

TVS Electronics Limited generates revenue through multiple streams, primarily by selling its core products like POS systems, printers, and ATMs to various industries including retail and banking. The company also earns income from maintenance and service contracts, which provide ongoing support and upgrades for its technology solutions. Additionally, strategic partnerships with other technology firms and financial institutions bolster its market presence and create opportunities for bundled offerings. This multi-faceted revenue model, focusing on both hardware sales and associated services, contributes significantly to the company's overall earnings.

TVS Electronics Limited Financial Statement Overview

Summary

Modest revenue growth (4.22%) is outweighed by weak profitability (negative net margin and negative EBIT margin) and very weak cash generation (negative free cash flow growth; low operating cash flow to net income at 3.83%). Balance sheet leverage is moderate (debt-to-equity 0.46) but negative ROE signals poor shareholder value creation.

Income Statement

TVS Electronics Limited has experienced modest revenue growth of 4.22% in the most recent year. However, the company is facing challenges with profitability, as indicated by a negative net profit margin of -0.88% and a negative EBIT margin. The gross profit margin remains relatively healthy at 49.51%, suggesting some efficiency in production or service delivery. The declining EBITDA margin indicates potential issues in managing operating expenses.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.46, indicating a balanced approach to leveraging. However, the return on equity is negative, reflecting recent net losses and raising concerns about shareholder value creation. The equity ratio of 35.67% suggests a stable capital structure, but the negative ROE highlights profitability challenges.

Cash Flow

TVS Electronics Limited is experiencing negative free cash flow growth, indicating potential liquidity issues. The operating cash flow to net income ratio is low at 3.83%, suggesting difficulties in converting earnings into cash. The negative free cash flow to net income ratio further emphasizes cash flow challenges, which could impact future operations and investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.16B	4.30B	3.66B	3.53B	3.08B	2.25B
Gross Profit	1.92B	1.19B	1.75B	1.66B	1.55B	1.13B
EBITDA	126.70M	140.80M	121.50M	213.10M	281.10M	106.10M
Net Income	-60.80M	-37.90M	2.70M	95.20M	151.00M	7.70M
Balance Sheet
Total Assets	0.00	2.61B	2.44B	2.21B	2.03B	1.70B
Cash, Cash Equivalents and Short-Term Investments	120.10M	120.20M	294.30M	229.20M	448.30M	251.40M
Total Debt	0.00	426.00M	404.40M	136.60M	88.30M	66.70M
Total Liabilities	-929.40M	1.68B	1.45B	1.19B	1.10B	879.60M
Stockholders Equity	929.40M	929.40M	987.90M	1.02B	926.10M	817.90M
Cash Flow
Free Cash Flow	0.00	-32.60M	-140.30M	-239.80M	223.40M	303.50M
Operating Cash Flow	0.00	56.10M	139.40M	-83.40M	262.30M	338.40M
Investing Cash Flow	0.00	129.40M	-401.90M	61.40M	-201.70M	-186.10M
Financing Cash Flow	0.00	-176.80M	189.40M	9.20M	-37.80M	-209.90M

TVS Electronics Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 430.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TVSELECT, the sentiment is Negative. The current price of 430 is above the 20-day moving average (MA) of 412.67, below the 50-day MA of 460.09, and below the 200-day MA of 464.43, indicating a bearish trend. The MACD of -23.17 indicates Negative momentum. The RSI at 41.27 is Neutral, neither overbought nor oversold. The STOCH value of 39.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TVSELECT.

TVS Electronics Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MINDTECK	77 Outperform	₹7.24B	23.31	―	0.50%	0.23%	10.64%
INNOVANA	68 Neutral	₹7.05B	14.35	―	―	25.98%	18.29%
SILVERTUC	66 Neutral	₹17.54B	67.53	―	0.06%	16.93%	36.77%
ONWARDTEC	62 Neutral	₹7.30B	16.09	―	1.84%	10.49%	69.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SUBEXLTD	46 Neutral	₹5.25B	-100.00	―	―	-9.53%	96.99%
TVSELECT	41 Neutral	₹7.45B	-231.48	―	0.22%	9.71%	14.13%

TVS Electronics Limited Corporate Events

TVS Electronics to Close Trading Window Ahead of Q3 FY26 Results

TVS Electronics Limited has announced the closure of its trading window for dealing in the company’s securities from 1 January 2026 until 48 hours after the declaration of its unaudited financial results for the quarter ended 31 December 2025. The move, undertaken in line with SEBI’s Prohibition of Insider Trading Regulations, 2015, and the company’s internal code of conduct, is a routine governance measure aimed at preventing insider trading and ensuring fair disclosure to all market participants; the board meeting date for approving these quarterly results will be communicated in due course, signaling that the company is preparing its next set of financial disclosures for investors and regulators.

TVS Electronics Resolves Tax Dispute with No Financial Impact

TVS Electronics Limited has announced the resolution of a material pending litigation with the Uttar Pradesh Goods & Services Tax Department. The dispute involved a show cause notice regarding excess input tax credit claims and suppression of turnover for the financial year 2021-22. The company successfully submitted supporting documents, leading to the vacation of the notice and no financial demand being raised, which positively impacts the company’s financial standing and operational clarity.

NCLT Approves Amalgamation of TVS Investments and TVS Electronics

The National Company Law Tribunal in Chennai has approved the amalgamation scheme between TVS Investments Pvt Ltd and TVS Electronics Limited. This merger is expected to streamline operations and potentially enhance market positioning for TVS Electronics, with the appointed date for the scheme set as April 1, 2023, and the effective date pending further procedural completions.

TVS Electronics Updates on Physical Share Transfer Requests

TVS Electronics Limited has announced a monthly update regarding the re-lodgement of transfer requests for physical shares, as per SEBI guidelines. The company reported no new requests received or processed in the month ending October 31, 2025, and has publicized the opening of a special window for these requests through various channels, including LinkedIn, their website, and newspaper publications.