TVS Motor Company is a manufacturer of two-wheelers and three-wheelers in India. It is part of the larger TVS Group that is involved in various industries including aviation, finance, and logistics among others.
As of 31 July 2018, TVS Motors has a market capitalisation of Rs.24,583 crore.
TVS Motor Company’s Wealth and Recent Performance
- According to the annual report released by the company in July 2018, the value of sales and other income which included excise duty was Rs.15,618 crore in the financial year 2017–2018 compared to Rs.13,363 crore in the financial year 2016–2017.
- Profit after tax increased from Rs.558 crore in the FY 2016–2017 to Rs.663 crore in FY 2017–2018.
- The value of net fixed assets of the company grew from Rs.2,046 crore in the FY 2016–2017 to Rs.2,503 crore in the FY 2017–2018.
- Net worth of the company increased to Rs.2,880 crore in the financial year ending 2018 compared to Rs.2,408 crore in the financial year ending 2017.
- Total borrowings grew to Rs.1,189 crore in the FY 2017–2018 from Rs.1,107 crore the previous year.
TVS Motor Company’s Stock Trends in 2018
- The stock opened at about Rs.766 in the beginning of January 2018 and closed at about Rs.516 at the end of the month in July 2018. The stock followed a downward trend in 2018.
- While the stock was at about Rs.766 on the opening day of January 2018, by the beginning of the second week, the stock began to decline in price. The stock closed for the month at about Rs.713.
- February 2018 saw the continuation of the downward trend with the stock opening at about Rs.671 in the beginning of the month and reaching a low of around Rs.631 on 22 February 2018. Then, the stock appeared to recover to close at about Rs.680 for the end of the month.
- The stock opened lower at about Rs.677 in the beginning of March 2018. While an interim 130% dividend was announced on 6 March 2018, the stock continued to decline in price till about 23 March 2018 with a low of about Rs.606. Then, the stock rose a little to close for the month at about Rs.619.
- The stock opened at about Rs.660 in April 2018 and closed for the month at about Rs.667.
- May 2018 marked a continuation of the stock’s downward trend and it went below Rs.600. On 24 May 2018, the stock reached a low of about Rs.542 after which the stock did not breach the Rs.600 mark for the rest of the month. The stock then climbed to close for the month at around Rs.587.
- In June 2018, the stock opened just below Rs.600 and did not rise over the mark for the entire month. The stock closed at about Rs.552 at the end of the month.
- The stock opened at about Rs.556 in the beginning of July 2018 and closed at about Rs.516 at the end of the month.
TVS Motor Company’s Stock Trends in 2016 and 2017
- The stock opened at about Rs.286 in the beginning of January 2016. The company announced an interim 100% dividend on 4 February 2016. Another interim 150% dividend was announced on 17 March 2016. The stock climbed during the month of March 2016 to close for the month at about Rs.322.
- The stock opened at about Rs.324 in April 2016, and closed for the month at about Rs.319. Then, in May 2016, the stock dipped to end the month at about Rs.284. The stock recovered a little in June to close at about Rs.309.
- In July, the stock did not increase much and closed for the month at about Rs.291. In August, the stock climbed steadily to close for the month at about Rs.326. September 2016 also marked a period of growth for the stock with it closing at about Rs.365 at the end of the month.
- The stock achieved a peak value of about Rs.412 in October 2016. An interim 125% dividend was announced on 3 November 2016. The stock declined a lot in November 2016 to close at about Rs.374. In December, there was no drastic increase in the stock price and the stock closed at about Rs.360 at the end of the month.
- The stock opened at about Rs.367 in January 2017. The stock increased steadily for the rest of the month to close at about Rs.386. Then, in February, the stock continued on an upward trend going on to close at about Rs.428 at the end of the month. The stock dipped a little in March 2017 but increased again by the end of the month. An interim 125% dividend was announced on 14 March 2017.
- April 2017 marked a period of growth for the stock with it closing at about Rs.496 at the end of the month. May 2017 marked another period of growth with the stock moving past Rs.500 and closing at about Rs.538 at the end of the month. The stock increased even more in June 2017 to close at about Rs.549.
- The stock rose to about Rs.582 in July 2017. There was a brief dip in the stock price in August 2017 but the stock recovered and moved past the Rs.600 close to the end of the month. The final price for August was about Rs.603. September 2017 was another period of high growth for the stock with the closing price for the month being about Rs.657.
- The stock breached the Rs.700 mark in October 2017. The final price for October was about Rs.723. An interim 200% dividend was announced on 8 November 2017. The stock closed for the month at about Rs.716. December 2017 was another period of growth for the stock and it closed at about Rs.770 at the end of the month.
Should You Invest in TVS Motor Company?
- The company’s sales and other income including excise duty has been on an upward trend from the financial year 2008–2009 to the financial year 2017–2018. In the FY 2009, the sales and other income was worth Rs.4,079 crore while the same was worth Rs.15,618 crore in the the FY 2018.
- Profit after tax increased from Rs.31 crore in the financial year 2008–2009 to Rs.663 crore in the financial year 2017–2018.
- Reserves and surplus have grown from Rs.786 crore to Rs.2,833 crore over ten years.
- The company collaborated with BMW Motorrad in order to develop the TVS Apache RR 310 with which the company expects to enter the high-performance motorcycle segment in India.
- The company has received a number of awards in 2018 alone in the following categories—highest customer satisfaction, most appealing premium motorcycle, highest ranked economy motorcycle in initial quality, most appealing economy motorcycle, and most appealing executive scooter.
- The company has the capacity to produce 4 million two-wheelers and 120,000 three-wheelers using its four manufacturing locations out of which one is located internationally in Indonesia.
- While all of these points indicate that TVS Motors could be a valuable company to invest in, it would be best to perform further personal research based on personal preferences, financial commitments, returns expected, and personal risk appetites.
TVS Motors is currently in the process of manufacturing two-wheelers and three-wheelers which it sells internationally. The company is headquartered in Chennai, India. When considered by criteria such as turnover and size of the company, TVS Motors is the largest company under the TVS Group which has interests in various industries. With respect to two-wheeler offerings, the company manufactures five different motorcycles, five different scooters, and three different mopeds.
History of the Company
The company is named after Mr. T V Sundaram Iyengar. In the year 1911, he began a bus service in Delhi. This was the beginning of T V Sundaram Iyengar and Sons Limited. After his demise, his children took the company forward by entering various industries including automobile, finance, logistics, and aviation to name a few. The early 1960s saw the formation of a group called Sundaram Clayton. This was formed by TVS joining with Clayton Dewandre Holdings, UK. This group built a manufacturing plant in Hosur. This plant was used to build mopeds. This resulted in the birth of the TVS 50, the first Indian moped that could seat two people. Sundaram Clayton and Suzuki Limited together launched a joint-venture, known as TVS-Suzuki, that would involve sharing of technical expertise in order to produce motorcycles. This relationship lasted close to two decades. In 2001, TVS decided to end the joint-venture with Suzuki, resulting in the company being named TVS Motors.
Management of the Company
The company’s management is headed by the following people:
Venu Srinivasan - Chairman and Managing Director
Sudarshan Venu - Joint Managing Director
K. N. Radhakrishnan - President and CEO
K. Gopala Desikan - Chief Financial Officer
Prince Asirvatham - Independent Director
H. Lakshmanan - Non Independent Director
T. Kannan - Non Independent Director
C. R. Dua - Non Independent Director
R. Ramakrishnan - Non Independent Director
Dr. Lakshmi Venu - Non Independent Director
Hemant Krishan Singh - Non Independent Director
Rajesh Narasimhan - Non Independent Director
TVS Motor Company Listings in NSE, BSE, and Other Indices
The company is listed under the following codes:
IND: Auto - two- and three-wheelers
ISIN Code: INE494B01023
The company is included as part of indices like Nifty 200, Nifty 500, Nifty Auto, Nifty Midcap 50, S&P BSE 200, and S&P BSE Carbonex among others.
The company is listed on stock exchanges like Bangalore Stock Exchange Limited, Calcutta Stock Exchange Limited, and Delhi Stock Exchange Association Limited among others.
The company’s registered office address is:
TVS Motor Company, Jayalakshmi Estates V Floor, 8, Haddows Road, Chennai - 600 006
Phone number: 044 2827 2233
Fax: 044 2825 7121
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