TVSMOTOR - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.4

📊 Fundamental & Valuation Analysis

TVS Motor Company Ltd is a high-quality, large-cap auto manufacturer with strong fundamentals and aggressive EV expansion plans

P/E Ratio: 61.3 vs Industry PE of 31.1 — expensive, but justified by growth

PEG Ratio: 1.46 — fair for a growth stock

ROE / ROCE: 28.4% / 15.4% — excellent shareholder returns and decent capital efficiency

EPS: ₹47.1 — strong earnings

Debt to Equity: 3.36 — high, but manageable given strong cash flows

Dividend Yield: 0.36% — modest, not a major income play

TVS has delivered 643% returns over 5 years, with consistent revenue and profit growth. Its aggressive push into EVs (iQube, electric 3-wheelers, Norton relaunch) and global expansion (Indonesia, Africa, UK) position it well for long-term growth

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📉 Technical & Trend Analysis

Current Price: ₹2,802

DMA 50 / DMA 200: ₹2,795 / ₹2,604 — in a long-term uptrend

RSI: 46.7 — neutral zone

MACD: -6.84 — bearish crossover

Volume: Above average — accumulation phase

The stock is ~5% below its 52-week high of ₹2,961, suggesting consolidation before next breakout.

✅ Ideal Entry Price Zone

Based on valuation and technical indicators, the ideal entry zone is

₹2,650–₹2,750

This aligns with support near the 200 DMA and Fibonacci pivot levels

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Wait for RSI to dip below 45 and MACD to flatten for a safer entry

📈 Long-Term Holding Strategy

If you already hold the stock

Holding Period: 5–10 years, aligned with EV growth and global expansion

Exit Strategy

Partial exit near ₹3,100–₹3,300 if RSI > 75 and valuations exceed 70x PE

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Full exit if ROE drops below 20% or PAT growth slows below 10% for 2+ quarters

Reassess if EV rollout or export momentum stalls due to supply chain issues (e.g., rare-earth magnet crisis)

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Long-term forecasts suggest potential upside to ₹6,200 by 2030

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🔍 Summary

Metric Value Verdict

ROE / ROCE 28.4% / 15.4% Excellent / Solid

PEG Ratio 1.46 Fair for growth

Dividend Yield 0.36% Modest

Debt to Equity 3.36 High but manageable

RSI / MACD 46.7 / -6.84 Neutral / Bearish

PAT Trend +68.9% QoQ Strong growth

TVS Motor is a long-term compounder in the auto and EV space, ideal for growth-oriented investors with a 5+ year horizon.

Would you like a side-by-side comparison with Hero MotoCorp or Bajaj Auto to see how TVS stacks up in the two-wheeler segment?

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