TVS Srichakra Limited (TVSSRICHAK) AI Stock Analysis

• Market Cap: ₹31.41B
• Dividend Yield: 0.4%
• Average Volume (3M): 744.00
• Price to Earnings (P/E): 113.8
• Beta (1Y): 1.41
• Revenue Growth: 8.03%
• EPS Growth: -57.44%
• Country: IN
• Employees: 2,762
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Auto - Parts
• EPS (TTM): 24.00
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹4,428.00 ▲(3.54% Upside)

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

Revenue Growth Trend

Sustained multi-year revenue growth demonstrates expanding market penetration and product demand in core tyre segments. This scale supports long-term supply chain relationships, capacity utilization improvements and provides a firmer base to fund product development or distribution expansion over the next 2–6 months.

Dual Sales Channels: OEM + Replacement

A business model combining OEM contracts and replacement aftermarket sales offers durable revenue diversification: OEM provides volume predictability while replacement drives recurring demand. This mix reduces single-channel exposure and supports steady cash flows and customer relationships over multiple cycles.

Moderate Leverage / Stable Capital Structure

A moderate debt-to-equity ratio and a stable equity base indicate the company maintains usable financial flexibility. This capital structure can support continued investment in capacity or product lines without immediate solvency stress, assuming operational performance stabilizes.

Negative Factors

Declining Profitability Margins

Sharply compressed net margins materially reduce retained earnings and internal funding capacity. Persistent margin erosion erodes returns on invested capital, limits ability to absorb input-cost shocks, and weakens competitive positioning unless operational efficiency or pricing power improves.

Negative Free Cash Flow

Negative free cash flow alongside declining operating cash generation signals the company is not producing sufficient internal cash to cover capex and working capital. Over several months this heightens reliance on external financing and constrains strategic flexibility.

Rising Debt Burden & Falling ROE

Increasing indebtedness coupled with a steep ROE decline indicates capital is delivering lower returns and raises leverage risk. If revenues or margins weaken, interest and repayment obligations could strain liquidity and limit capacity for capex or market expansion in the medium term.

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 Limited generates revenue primarily through the sale of its tire products for two-wheelers and three-wheelers. The company has established a robust distribution network that includes various channels such as dealers, retailers, and direct sales to OEMs (Original Equipment Manufacturers). Key revenue streams include the sale of tires for motorcycles, scooters, and commercial vehicles, as well as the export of tires to international markets. Additionally, strategic partnerships with automotive manufacturers enhance its market reach and contribute to sales. The company's focus on research and development allows it to innovate and introduce new products, which helps to capture greater market share and drive revenue growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.82B	32.54B	29.26B	29.85B	25.32B	19.33B
Gross Profit	12.07B	8.31B	5.54B	12.17B	9.60B	8.47B
EBITDA	2.33B	2.19B	2.94B	2.37B	1.73B	2.35B
Net Income	268.10M	206.10M	1.08B	779.90M	434.70M	739.20M
Balance Sheet
Total Assets	0.00	29.80B	26.97B	24.56B	23.59B	16.22B
Cash, Cash Equivalents and Short-Term Investments	172.10M	147.90M	167.20M	310.90M	88.10M	59.60M
Total Debt	0.00	8.86B	8.42B	6.62B	6.10B	2.08B
Total Liabilities	-11.83B	17.96B	15.85B	14.22B	13.89B	7.98B
Stockholders Equity	11.83B	11.84B	11.12B	10.34B	9.71B	8.25B
Cash Flow
Free Cash Flow	0.00	-107.10M	-228.50M	-18.00M	-3.47B	2.10B
Operating Cash Flow	0.00	1.50B	2.28B	2.06B	-621.40M	3.07B
Investing Cash Flow	0.00	-1.60B	-3.27B	-2.02B	-2.82B	-918.50M
Financing Cash Flow	0.00	63.40M	1.01B	2.70M	3.48B	-2.15B

TVS Srichakra Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4276.80
• 50DMA: Negative
• 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:TVSSRICHAK, the sentiment is Positive. The current price of 4276.8 is above the 20-day moving average (MA) of 4039.90, above the 50-day MA of 4246.97, and above the 200-day MA of 3492.73, indicating a neutral trend. The MACD of -59.68 indicates Negative momentum. The RSI at 52.21 is Neutral, neither overbought nor oversold. The STOCH value of 81.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TVSSRICHAK.

TVS Srichakra Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUHTAMAKI	66 Neutral	₹13.56B	13.62	―	0.95%	-1.59%	-75.34%
TVSSRICHAK	66 Neutral	₹31.41B	113.75	―	0.40%	8.03%	-57.44%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NDRAUTO	60 Neutral	₹16.25B	27.92	―	0.33%	13.68%	33.44%
EVEREADY	55 Neutral	₹24.39B	53.21	―	0.46%	7.37%	-39.19%
HIMATSEIDE	50 Neutral	₹13.06B	15.06	―	0.21%	-7.55%	-30.11%
RAJRILTD	40 Underperform	₹11.16B	31.26	―	―	22.75%	―

TVS Srichakra Limited Corporate Events

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.

Eurogrip Expands Global Reach with Showcases in Mexico and Sri Lanka

TVS Srichakra Limited’s Eurogrip brand showcased its premium tyre portfolio at the Expo Moto International Trade Show in Mexico City and the Colombo Motor Show in Sri Lanka, highlighting its expanding presence in Latin American and South Asian markets. This strategic participation aims to strengthen Eurogrip’s global footprint and enhance customer engagement by offering firsthand experiences of its advanced tyre technology, thereby reinforcing its position as a leading global two-wheeler tyre specialist.

TVS Srichakra’s Eurogrip Launches New Adventure Tyre Range at EICMA 2025

TVS Srichakra Limited’s Eurogrip brand unveiled its new adventure tyre range, Trailhound Wild and Bee Wild, at EICMA 2025 in Milan, showcasing its commitment to innovation and global market presence. The introduction of these products, featuring advanced materials and design, highlights Eurogrip’s focus on expanding its offerings to cater to diverse riding needs and strengthen its position as a global bike tyre specialist.