TVS Srichakra Limited (TVSSRICHAK) AI Stock Analysis

• Market Cap: ₹27.20B
• Dividend Yield: 0.4%
• Average Volume (3M): 744.00
• Price to Earnings (P/E): 72.2
• Beta (1Y): 1.39
• Revenue Growth: 8.03%
• EPS Growth: -57.44%
• Country: IN
• Employees: 2,762
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Auto - Parts
• EPS (TTM): 35.40
• Shares Outstanding: 7,657,050
• 10 Day Avg. Volume: 1,053
• 30 Day Avg. Volume: 744
• PEG Ratio: -1.19
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.61
• P/FCF Ratio: -185.52
• 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): 86.3
• Revenue Forecast (FY): ₹31.70B

• Rating: 66 Neutral
• Price Target: ₹3,834.00 ▼(-10.35% Downside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

The overall stock score is driven by strong technical momentum, despite financial challenges and high valuation. The stock's bullish trend is a significant positive, but the high P/E ratio and low dividend yield are concerns.

Positive Factors

Sustained Revenue Growth

Consistent multi-year top-line expansion demonstrates successful scaling of manufacturing and distribution. A growing revenue base supports economies of scale, strengthens bargaining with suppliers and OEMs, and provides a firmer platform for reinvestment and long-term strategic initiatives despite margin pressure.

Diversified Sales Channels & Product Mix

A mix of replacement-market and OEM revenues across two‑wheelers, three‑wheelers and off‑highway tyres reduces single-market reliance. Replacement demand is relatively resilient and OEM contracts provide predictable volumes, together improving revenue stability and lowering structural cyclicality over the medium term.

Manageable Leverage Profile

A moderate debt-to-equity ratio with a stable equity base indicates a balanced capital structure that can support investment and working capital needs. While debt is material, the current leverage level preserves financial flexibility for capex or capacity expansion without immediate structural solvency risk.

Negative Factors

Eroding Profitability Margins

A sharp decline in net margins signals rising cost pressures or inability to fully pass through input inflation. Persistently thin margins undermine free cash generation and reduce capacity to fund growth internally, forcing reliance on external financing or cost restructuring to restore sustainable returns.

Negative Free Cash Flow

Negative free cash flow indicates capital expenditures and working capital needs exceed operating cash generation. Over the medium term this pressures liquidity, may necessitate debt or equity raises, and constrains reinvestment, dividends and deleveraging unless operating cash conversion improves.

Declining Return on Equity

A steep fall in ROE reflects deteriorating profit generation from shareholders' capital. Sustained low ROE can erode investor confidence and signal deeper operational or pricing issues, making it harder to attract capital and justify future expansion without demonstrable margin recovery.

TVS Srichakra Limited Business Overview & Revenue Model

Company Description

TVS Srichakra Limited manufactures and sells two-wheeler, three-wheeler, and other industrial tires and tubes to original equipment and vehicle manufacturers in India. It also offers farm and implement, skid steer, multipurpose, and flotation tires. The company also exports its products. TVS Srichakra Limited was incorporated in 1982 and is based in Chennai, India.

How the Company Makes Money

TVS Srichakra makes money primarily by manufacturing and selling tyres and related products (such as tubes) to customers in India and overseas. Its revenue is largely generated through (1) replacement-market sales, where tyres are sold via dealer/distributor and retail networks to end customers replacing worn tyres; and (2) OEM (original equipment manufacturer) supply, where tyres are supplied directly to vehicle manufacturers for fitment on new vehicles. Additional revenue comes from sales across different tyre categories (e.g., two-wheeler tyres as the core, plus selected tyres for three-wheelers and other specialty/off-highway uses), with earnings influenced by product mix, pricing, volumes, and input costs (notably rubber and other raw materials). Specific details on material partnerships, customer-wise revenue concentration, or segment-level revenue split are null.

TVS Srichakra Limited Financial Statement Overview

Summary

TVS Srichakra Limited shows strong revenue growth but faces challenges with declining profitability margins and negative cash flow, indicating potential liquidity issues and a reliance on debt financing.

Income Statement

TVS Srichakra Limited has demonstrated a stable revenue growth over the past years, with a notable increase from ₹19,331.6 million in 2021 to ₹32,538.3 million in 2025. However, the gross profit margin has fluctuated, with the latest being approximately 25.5% in 2025, down from the prior year. The net profit margin has also seen a decline, from around 3.7% in 2024 to 0.6% in 2025, indicating potential challenges in controlling costs or increasing operating efficiency. The EBIT and EBITDA margins showed a similar downward trend, highlighting the need for improved operational efficiency.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, with total debt increasing to ₹8,860.2 million in 2025, resulting in a debt-to-equity ratio of approximately 0.75. The equity ratio has remained relatively stable, indicating a steady capital structure, yet there's a considerable burden of debt. The return on equity has been declining, from 7.3% in 2023 to 1.7% in 2025, suggesting declining profitability on shareholder's equity.

Cash Flow

Cash flow analysis reveals challenges with negative free cash flow in recent years, notably -₹107.1 million in 2025. The operating cash flow has decreased, affecting cash generation efficiency. The free cash flow to net income ratio is negative, indicating that the company is spending more on capital expenditures than it earns in net income, which may pressure future liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.67B	32.54B	29.26B	29.85B	25.32B	19.33B
Gross Profit	10.86B	8.31B	5.54B	12.17B	9.60B	8.47B
EBITDA	2.38B	2.19B	2.94B	2.37B	1.73B	2.35B
Net Income	276.10M	206.10M	1.08B	779.90M	434.70M	739.20M
Balance Sheet
Total Assets	29.24B	29.80B	26.97B	24.56B	23.59B	16.22B
Cash, Cash Equivalents and Short-Term Investments	380.30M	147.90M	167.20M	310.90M	88.10M	59.60M
Total Debt	7.95B	8.86B	8.42B	6.62B	6.10B	2.08B
Total Liabilities	17.70B	17.96B	15.85B	14.22B	13.89B	7.98B
Stockholders Equity	11.54B	11.84B	11.12B	10.34B	9.71B	8.25B
Cash Flow
Free Cash Flow	1.35B	-107.10M	-228.50M	-18.00M	-3.47B	2.10B
Operating Cash Flow	2.06B	1.50B	2.28B	2.06B	-621.40M	3.07B
Investing Cash Flow	-667.90M	-1.60B	-3.27B	-2.02B	-2.82B	-918.50M
Financing Cash Flow	-1.31B	63.40M	1.01B	2.70M	3.48B	-2.15B

TVS Srichakra Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4276.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TVSSRICHAK, the sentiment is Negative. The current price of 4276.8 is above the 20-day moving average (MA) of 3746.06, above the 50-day MA of 3969.12, and above the 200-day MA of 3655.46, indicating a bearish trend. The MACD of -143.90 indicates Positive momentum. The RSI at 36.73 is Neutral, neither overbought nor oversold. The STOCH value of 41.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TVSSRICHAK.

TVS Srichakra Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TVSSRICHAK	66 Neutral	₹27.20B	72.23	―	0.40%	8.03%	-57.44%
HUHTAMAKI	64 Neutral	₹12.30B	13.53	―	0.95%	-1.59%	-75.34%
NDRAUTO	63 Neutral	₹16.20B	32.60	―	0.33%	13.68%	33.44%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EVEREADY	55 Neutral	₹21.77B	80.19	―	0.46%	7.37%	-39.19%
HIMATSEIDE	43 Neutral	₹9.92B	46.69	―	0.21%	-7.55%	-30.11%
RAJRILTD	40 Underperform	₹11.59B	52.64	―	―	22.75%	―

TVS Srichakra Limited Corporate Events

TVS Srichakra Publishes Postal Ballot Notice for Shareholder Approval

TVS Srichakra Limited has notified the stock exchanges that it has published a postal ballot notice in two newspapers, Business Line (English) and Dinamalar (Tamil), dated February 28, 2026. The disclosure, made under SEBI’s Listing Regulations, signals that the company is seeking shareholder approval on matters via postal ballot, underscoring its adherence to regulatory transparency and corporate governance norms.

The communication, signed by the Company Secretary and Compliance Officer, formally records the completion of this statutory publication step. For investors and other stakeholders, the move indicates that certain corporate decisions requiring shareholder consent are in process, though specific resolutions or proposals were not detailed in the announcement.

TVS Srichakra Files SEBI Dematerialisation Compliance Certificate for Q3 FY2025

TVS Srichakra Limited has informed the stock exchanges that it has received a confirmation certificate from its Registrar and Share Transfer Agent, Integrated Registry Management Services, in compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended 31 December 2025. The certificate confirms that all securities submitted for dematerialisation during the quarter were duly processed, listed on the exchanges, and that the corresponding physical certificates were cancelled and replaced with electronic records within the prescribed timelines, underscoring the company’s adherence to regulatory requirements and reinforcing governance standards for its shareholders and market participants.