TMPV - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 3.4
| Stock Code | TMPV | Market Cap | 1,38,253 Cr. | Current Price | 375 ₹ | High / Low | 449 ₹ |
| Stock P/E | 20.9 | Book Value | 66.7 ₹ | Dividend Yield | 1.60 % | ROCE | 20.3 % |
| ROE | 17.9 % | Face Value | 2.00 ₹ | DMA 50 | 360 ₹ | DMA 200 | 396 ₹ |
| Chg in FII Hold | 0.75 % | Chg in DII Hold | -1.95 % | PAT Qtr | -237 Cr. | PAT Prev Qtr | 3,855 Cr. |
| RSI | 64.7 | MACD | 1.29 | Volume | 1,05,72,717 | Avg Vol 1Wk | 1,41,41,732 |
| Low price | 324 ₹ | High price | 449 ₹ | PEG Ratio | 0.27 | Debt to equity | 0.12 |
| 52w Index | 41.1 % | Qtr Profit Var | -1,680 % | EPS | 245 ₹ | Industry PE | 32.0 |
📊 Analysis: TMPV shows strong fundamentals with ROE at 17.9% and ROCE at 20.3%, indicating efficient capital use. EPS of 245 ₹ supports valuation strength, and P/E of 20.9 is attractive compared to the industry average of 32.0, suggesting undervaluation. Dividend yield of 1.60% provides modest passive returns. PEG ratio of 0.27 highlights growth at a reasonable price. However, the latest quarterly PAT turned negative (-237 Cr. vs 3,855 Cr.), raising concerns about earnings volatility. Technical support lies around 350–370 ₹ (DMA 50 & 200), with resistance near 440–450 ₹. The ideal entry zone is 340–370 ₹ for margin of safety. For existing holders, a medium-to-long horizon is viable, but partial profit booking near 440–450 ₹ resistance is advisable unless profitability stabilizes.
✅ Positive
- Strong ROE (17.9%) and ROCE (20.3%) support long-term compounding.
- EPS of 245 ₹ reflects robust profitability over the year.
- P/E of 20.9 is attractive compared to industry average (32.0).
- Dividend yield of 1.60% provides steady income.
- FII holdings increased by 0.75%, showing foreign investor confidence.
- Low debt-to-equity ratio (0.12) ensures financial stability.
⚠️ Limitation
- Quarterly PAT turned negative (-237 Cr.), raising concerns about earnings consistency.
- DII holdings decreased by -1.95%, showing reduced domestic confidence.
- Book value of 66.7 ₹ is modest relative to price.
- Stock trading at only 41.1% of 52-week index range, reflecting limited momentum.
📉 Company Negative News
- Quarterly profit variation (-1,680%) indicates severe earnings volatility.
- Recent PAT decline highlights operational challenges.
📈 Company Positive News
- Strong fundamentals with double-digit ROE and ROCE.
- Foreign institutional investors increasing stake.
- PEG ratio of 0.27 highlights undervaluation relative to growth.
🏭 Industry
- Automobile sector benefits from rising demand, electrification, and export growth.
- Industry P/E at 32.0 suggests TMPV trades at a discount.
- Structural drivers: EV adoption, urban mobility, and global expansion.
🔎 Conclusion
TMPV earns a rating of 3.4 due to strong ROE/ROCE, attractive P/E, and undervaluation relative to industry, but faces risks from recent earnings volatility. Long-term investors can consider entry in the 340–370 ₹ zone for margin of safety. Current holders should maintain a medium-to-long horizon, with partial profit booking near 440–450 ₹ resistance unless profitability stabilizes. The stock remains a promising auto sector play but requires caution due to recent profit weakness.