TVS Motor Company Limited (TVSMOTOR) AI Stock Analysis

• Market Cap: ₹1.57T
• Dividend Yield: 0.3%
• Average Volume (3M): 47.49K
• Price to Earnings (P/E): 65.6
• Beta (1Y): 1.62
• Revenue Growth: 14.06%
• EPS Growth: 39.28%
• Country: IN
• Employees: 5,980
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Auto - Manufacturers
• EPS (TTM): 16.40
• Shares Outstanding: 475,087,130
• 10 Day Avg. Volume: 74,641
• 30 Day Avg. Volume: 47,487
• PEG Ratio: 1.59
• Price to Book (P/B): 13.64
• Price to Sales (P/S): 2.66
• P/FCF Ratio: 113.16
• 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: ₹2,997.60
• Price Target Upside: -9.03% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 59 Neutral
• Price Target: ₹2,934.00 ▼(-10.96% Downside)

TVS Motor Company shows strong financial performance with notable revenue growth and profitability. However, high leverage and cash efficiency concerns pose risks. Technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation. These factors combined lead to a moderate overall stock score.

TVS Motor Company Limited Business Overview & Revenue Model

Company Description

TVS Motor Company Limited (TVSMOTOR) is a leading multinational automotive company headquartered in India. It primarily operates in the automotive sector, focusing on the design, manufacture, and sale of a wide range of two-wheelers and three-wheelers. The company's core products include motorcycles, scooters, mopeds, and three-wheeler vehicles. With a strong emphasis on innovation and sustainability, TVS Motor Company has established a significant presence in both domestic and international markets, providing mobility solutions to millions of customers worldwide.

How the Company Makes Money

TVS Motor Company makes money through the design, manufacture, and sale of two-wheelers and three-wheelers. The company's revenue model is primarily based on the sale of these vehicles across various segments, including motorcycles, scooters, and mopeds, catering to different customer needs and preferences. Key revenue streams include domestic sales in India, which remains one of the largest markets for two-wheelers, as well as export sales to countries in Asia, Africa, and Latin America. The company also benefits from a network of dealerships and service centers, enhancing customer reach and engagement. Additionally, TVS Motor Company engages in strategic partnerships and collaborations to expand its market presence and technological capabilities, contributing to its overall earnings.

TVS Motor Company Limited Financial Statement Overview

Summary

TVS Motor Company exhibits strong revenue and profit growth, with impressive margin improvements. However, the high Debt-to-Equity ratio raises concerns about financial leverage. Cash flow shows progress but needs better conversion of profits to cash.

Income Statement

TVS Motor Company has shown impressive revenue growth with a steady increase over the years, reaching 440.89 billion in the latest period, a significant improvement from prior years. The Gross Profit Margin has improved to 39.38%, indicating strong control over production costs. Net Profit Margin is at 5.07%, which is modest but shows a consistent upward trend. The EBIT and EBITDA margins are healthy at 12.71% and 15.07%, respectively, reflecting efficient operational management. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The balance sheet presents a mixed picture. The company has a high Debt-to-Equity ratio of 3.36, indicating significant leverage, which could be risky in volatile markets. However, Return on Equity is strong at 26.28%, demonstrating effective use of equity. The Equity Ratio is relatively low at 17.74%, suggesting a higher reliance on debt financing. The company's ability to generate returns is commendable, but the high leverage poses a potential risk.

Cash Flow

TVS Motor Company has shown improvement in operating cash flow, recovering from previous negative figures to 35.03 billion. Free Cash Flow has turned positive at 10.25 billion, indicating better cash management. However, the Operating Cash Flow to Net Income ratio is 1.57, and the Free Cash Flow to Net Income ratio is 0.46, indicating room for improvement in converting profits to cash. The cash flow statement shows progress but still faces challenges in achieving optimal cash efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	442.96B	436.01B	392.30B	319.74B	213.21B	172.71B
Gross Profit	150.70B	173.65B	145.09B	111.31B	50.04B	42.96B
EBITDA	66.92B	66.44B	55.59B	42.03B	27.48B	22.96B
Net Income	22.36B	22.36B	16.86B	13.29B	7.57B	5.94B
Balance Sheet
Total Assets	479.37B	479.37B	422.20B	352.33B	270.72B	219.93B
Cash, Cash Equivalents and Short-Term Investments	49.02B	49.02B	25.46B	22.95B	15.93B	15.74B
Total Debt	286.09B	286.09B	260.06B	223.76B	158.27B	121.79B
Total Liabilities	384.95B	384.95B	347.09B	293.23B	220.19B	177.78B
Stockholders Equity	85.03B	85.03B	67.84B	55.05B	43.99B	38.27B
Cash Flow
Free Cash Flow	0.00	10.25B	-23.98B	-57.46B	-25.45B	2.23B
Operating Cash Flow	0.00	35.03B	-12.53B	-44.05B	-15.60B	11.51B
Investing Cash Flow	0.00	-28.99B	-10.01B	-13.08B	-14.86B	-8.82B
Financing Cash Flow	0.00	11.55B	27.59B	61.18B	29.18B	2.53B

TVS Motor Company Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3295.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TVSMOTOR, the sentiment is Positive. The current price of 3295.2 is above the 20-day moving average (MA) of 2997.86, above the 50-day MA of 2904.12, and above the 200-day MA of 2598.50, indicating a bullish trend. The MACD of 110.03 indicates Negative momentum. The RSI at 77.99 is Negative, neither overbought nor oversold. The STOCH value of 92.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TVSMOTOR.

TVS Motor Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEROMOTOCO	79 Outperform	₹999.90B	19.84		3.30%	3.30%	23.39%
BAJAJ.AUTO	75 Outperform	₹2.42T	31.91		2.42%	12.27%	-4.25%
TATAMOTORS	71 Outperform	₹2.50T	11.82		0.88%	-1.08%	-34.23%
HYUNDAI	71 Outperform	₹1.92T	34.85		0.89%	-2.62%	-11.26%
ENDURANCE	66 Neutral	₹398.22B	46.37		0.35%	13.54%	19.14%
Sector *	61 Neutral	$17.70B	12.60	-3.90%	3.04%	1.52%	-15.30%
TVSMOTOR	59 Neutral	₹1.57T	65.62		0.30%	14.06%	39.28%

TVS Motor Company Limited Corporate Events

TVS Motor Company Announces Tribunal-Approved Scheme of Arrangement

TVS Motor Company Limited announced that the National Company Law Tribunal, Chennai Bench, has approved a Scheme of Arrangement between the company and its shareholders. This scheme involves issuing and allotting four fully paid-up preference shares of INR 10 each for every equity share held by shareholders. This move is expected to enhance shareholder value and reflects the company’s commitment to rewarding its investors.

TVS Motor Company Announces Virtual AGM for 2025

TVS Motor Company Limited has announced the details of its 33rd Annual General Meeting, scheduled for August 22, 2025, to be held via video conference. The announcement was made through newspaper advertisements in the ‘Financial Express’ and ‘Dinamani’, ensuring stakeholders are informed about the virtual meeting setup.