TVSMOTOR - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.3
| Stock Code | TVSMOTOR | Market Cap | 1,65,943 Cr. | Current Price | 3,493 ₹ | High / Low | 3,970 ₹ |
| Stock P/E | 47.3 | Book Value | 205 ₹ | Dividend Yield | 0.34 % | ROCE | 34.7 % |
| ROE | 30.6 % | Face Value | 1.00 ₹ | DMA 50 | 3,621 ₹ | DMA 200 | 3,445 ₹ |
| Chg in FII Hold | -0.53 % | Chg in DII Hold | 0.56 % | PAT Qtr | 971 Cr. | PAT Prev Qtr | 906 Cr. |
| RSI | 43.7 | MACD | -21.3 | Volume | 10,60,746 | Avg Vol 1Wk | 8,59,782 |
| Low price | 2,625 ₹ | High price | 3,970 ₹ | PEG Ratio | 1.09 | Debt to equity | 0.37 |
| 52w Index | 64.5 % | Qtr Profit Var | 57.0 % | EPS | 73.2 ₹ | Industry PE | 31.2 |
📊 TVSMOTOR (TVS Motor Company Ltd.) demonstrates strong fundamentals with high ROCE (34.7%) and ROE (30.6%), reflecting excellent operational efficiency and shareholder returns. EPS of ₹73.2 supports earnings strength, while quarterly PAT growth of 57% (₹971 Cr vs ₹906 Cr) highlights robust profitability momentum. Valuations are moderately stretched with a P/E of 47.3 compared to industry average of 31.2, though PEG ratio of 1.09 suggests fair growth-adjusted value. Debt-to-equity ratio of 0.37 remains manageable. Technical indicators show weakness (RSI 43.7, MACD -21.3), suggesting cautious entry timing.
💰 Ideal Entry Price Zone: ₹3,400 – ₹3,500 (aligned with 200 DMA support and valuation comfort).
📈 Exit / Holding Strategy: Hold for 3–5 years; consider partial profit booking near ₹3,900–₹3,950 resistance. Long-term holding is justified given strong profitability metrics and sectoral growth tailwinds.
✅ Positive
- Strong ROE (30.6%) and ROCE (34.7%) highlight operational efficiency.
- Quarterly PAT growth of 57% shows earnings momentum.
- EPS of ₹73.2 supports valuation strength.
- PEG ratio (1.09) indicates fair valuation relative to growth.
- DII holdings increased (+0.56%), showing domestic investor confidence.
⚠️ Limitation
- High P/E (47.3) compared to industry average (31.2).
- Dividend yield of 0.34% is modest.
- FII holdings decreased (-0.53%), showing reduced foreign interest.
- Weak technical indicators (RSI 43.7, MACD -21.3).
📉 Company Negative News
- Valuation stretched relative to industry peers.
- Weak technical momentum with RSI below 45 and bearish MACD.
📈 Company Positive News
- Strong quarterly profit growth and earnings momentum.
- Domestic institutional investors increasing stake.
- Robust fundamentals with high ROE/ROCE and EPS growth.
🏭 Industry
- Automobile sector trading at PE 31.2, offering moderate valuation levels.
- Industry supported by rising demand for two-wheelers and export opportunities.
🔎 Conclusion
TVSMOTOR is a strong candidate for long-term investment, driven by robust ROE/ROCE, EPS growth, and fair PEG valuation. Entry near ₹3,400–₹3,500 offers favorable risk-reward. Hold for 3–5 years with profit booking near ₹3,900–₹3,950 resistance. Despite stretched valuations and weak technical momentum, strong fundamentals and sectoral growth make TVSMOTOR attractive for portfolio inclusion.