TVS Holdings Limited (TVSHLTD) AI Stock Analysis

• Market Cap: ₹306.42B
• Dividend Yield: 0.65%
• Average Volume (3M): 404.00
• Price to Earnings (P/E): 19.7
• Beta (1Y): 1.24
• Revenue Growth: 19.93%
• EPS Growth: 52.09%
• Country: IN
• Employees: 68
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 243.75
• Shares Outstanding: 20,232,084
• 10 Day Avg. Volume: 399
• 30 Day Avg. Volume: 404
• PEG Ratio: 0.31
• Price to Book (P/B): 3.83
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 17.06
• 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: 64 Neutral
• Price Target: ₹14,388.00 ▼(-3.25% Downside)

TVS Holdings Limited's strong financial performance is the primary driver of its stock score, supported by robust revenue and profit growth. However, technical indicators suggest caution due to overbought conditions, and the stock's valuation appears high, limiting upside potential.

Positive Factors

Sustained Revenue Expansion

Material multi-year revenue growth signals durable commercial momentum and scale. Higher sales broaden market reach, support fixed-cost leverage, and provide resources for product investment or diversification, strengthening long-term competitive positioning and resilience.

Improved Return on Equity

ROE near 25% indicates effective use of shareholders' capital and strong operating returns relative to equity. Sustained high ROE supports reinvestment and dividend capacity, reflecting lasting managerial effectiveness in allocating scarce equity capital.

Positive Free Cash Flow Recovery

Transition to positive free cash flow and strong operating cash conversion signals healthier internal funding for capex, debt service, and buybacks. Durable cash generation reduces reliance on external financing and enhances strategic flexibility over coming quarters.

Negative Factors

High Financial Leverage

Very high leverage materially raises interest burden and refinancing risk, constraining capital allocation choices. In a rising-rate or cyclical downturn, debt servicing can erode earnings and cash flow, impairing long-term balance sheet resilience and strategic optionality.

Cash Flow Volatility

Intermittent swings in free and investing cash flows reduce predictability of internal funding for growth or deleveraging. For a highly leveraged firm, volatile cash conversion increases refinancing and liquidity risk and complicates multi‑period capital planning.

Low Net Profit Margin vs. Operating Margins

Wide gap between healthy operating margins and low net margin suggests heavy non-operating charges (likely financing costs). Persistent low net profitability limits retained earnings, weakens buffer against downturns and curbs long‑term value creation.

TVS Holdings Limited Business Overview & Revenue Model

Company Description

TVS Holdings Limited provides automotive vehicles and components. It also offers spare parts and accessories; and housing development and financial services. The company serves heavy and medium commercial vehicle, passenger car, and two-wheeler markets. It exports its products in North America and Europe. TVS Holdings Limited was formerly known as Sundaram-Clayton Limited. The company was incorporated in 1962 and is based in Chennai, India.

How the Company Makes Money

TVS Holdings Limited generates revenue through multiple streams, with a significant portion derived from the sale of automotive components to manufacturers and aftermarket retailers. The company also earns income from its logistics services, which are utilized by businesses seeking efficient supply chain management. Key revenue streams include direct sales of products, long-term contracts with automotive manufacturers, and freight services. Additionally, strategic partnerships with key players in the automotive industry enhance its market reach and profitability. Factors contributing to its earnings include the growing demand for automotive parts in emerging markets and the expanding logistics sector, driven by e-commerce and global trade.

TVS Holdings Limited Financial Statement Overview

Summary

TVS Holdings Limited demonstrates strong financial performance with significant revenue and profit growth, efficient operations, and improved return on equity. However, high leverage and cash flow volatility pose risks.

Income Statement

TVS Holdings Limited has shown solid revenue growth over the years, with a remarkable increase from ₹202,987.3 million in 2021 to ₹449,931.6 million in 2025. The gross profit margin is healthy, standing at approximately 25.9% in 2025, indicating efficient cost management. Net income has also increased significantly, improving the net profit margin to around 2.6% in 2025. The EBIT margin has improved to 17.7%, showcasing operational efficiency gains. However, while EBITDA margin data for 2025 seems low due to data error, prior periods reflect upward trends.

Balance Sheet

The company maintains a strong asset base, with total assets rising consistently to ₹541,812.1 million in 2025. However, the debt-to-equity ratio is high, at approximately 6.93 in 2025, indicating potential leverage risks. Despite this, the equity ratio is stable at about 8.6% in 2025, and return on equity has improved to 24.8%, reflecting effective use of equity to generate profits.

Cash Flow

TVS Holdings Limited has made significant improvements in free cash flow, turning positive in 2025 with ₹10,523.2 million, after previous years of negative cash flow. Operating cash flow to net income ratio is positive at 3.04 in 2025, suggesting strong cash conversion. However, fluctuations in free cash flow and investing cash flows indicate some volatility in cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	408.82B	387.60B	346.29B	298.09B	255.91B	202.99B
Gross Profit	124.68B	113.70B	96.63B	80.71B	87.54B	69.40B
EBITDA	4.65B	2.44B	2.04B	2.00B	27.87B	22.87B
Net Income	12.83B	11.64B	8.00B	6.50B	4.41B	3.24B
Balance Sheet
Total Assets	0.00	541.81B	447.27B	395.26B	307.10B	235.69B
Cash, Cash Equivalents and Short-Term Investments	54.63B	47.74B	28.49B	39.29B	40.64B	17.06B
Total Debt	0.00	335.17B	187.93B	257.89B	165.93B	128.53B
Total Liabilities	-101.56B	440.25B	377.35B	334.32B	234.28B	189.06B
Stockholders Equity	101.56B	46.87B	28.40B	32.41B	50.79B	29.05B
Cash Flow
Free Cash Flow	0.00	10.52B	-19.86B	-58.67B	-26.16B	1.49B
Operating Cash Flow	0.00	35.35B	-8.67B	-43.82B	-15.79B	11.30B
Investing Cash Flow	0.00	-32.27B	15.33B	-14.39B	-17.05B	-10.17B
Financing Cash Flow	0.00	12.09B	2.75B	59.79B	31.16B	2.61B

TVS Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14871.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TVSHLTD, the sentiment is Positive. The current price of 14871.05 is above the 20-day moving average (MA) of 14255.40, above the 50-day MA of 14347.07, and above the 200-day MA of 12655.18, indicating a bullish trend. The MACD of -27.59 indicates Negative momentum. The RSI at 64.78 is Neutral, neither overbought nor oversold. The STOCH value of 85.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TVSHLTD.

TVS Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEATLTD	69 Neutral	₹152.10B	27.47	―	0.77%	12.61%	-12.56%
TVSHLTD	64 Neutral	₹306.42B	19.71	―	0.65%	19.93%	52.09%
APOLLOTYRE	64 Neutral	₹312.50B	39.42	―	0.98%	4.36%	-45.33%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MAHSCOOTER	61 Neutral	₹153.90B	42.97	―	1.57%	―	―
AMBER	60 Neutral	₹201.12B	86.33	―	―	34.17%	20.13%
OLAELEC	43 Neutral	₹142.60B	-5.89	―	―	―	―

TVS Holdings Limited Corporate Events

TVS Holdings Confirms SEBI-Compliant Share Dematerialisation for December 2025 Quarter

TVS Holdings Limited has reported compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, confirming that its registrar and transfer agent, Integrated Registry Management Services, has properly processed all securities received for dematerialisation. The confirmation states that such securities were duly accepted or rejected, listed on the stock exchanges, and that physical certificates were mutilated and cancelled after verification with the depositories’ names substituted in the register of members, underscoring the company’s adherence to regulatory requirements on share dematerialisation and reinforcing governance standards for investors and market regulators.

TVS Holdings Limited’s Credit Rating Reaffirmed by CARE Ratings

TVS Holdings Limited announced that CARE Ratings Limited has reaffirmed its credit rating for non-convertible debentures at CARE AA+/Stable. This rating reflects the company’s strong financial flexibility and healthy capital structure, bolstered by its substantial stake in TVS Motor Company and recent acquisition of Home Credit India Finance Private Limited. The reaffirmation underscores TVSHL’s strategic positioning in the financial services sector and its commitment to maintaining robust investment coverage and leverage levels. The company is also planning a Scheme of Arrangement to issue non-convertible redeemable preference shares, subject to necessary approvals, which aligns with its financial strategies and market positioning.