TVS Motor Company ranks third in the two-wheeler manufacturing industry in India. It was founded in the year 1978 by TV Sundaram Iyengar and has its headquarters in Chennai, Tamil Nadu. It was the first company to use a catalytic converter in 100 CC motorcycle. This was a rare feat achieved by any manufacturing company in this industry and it earned the TVS Motors Company quite a reputation.
The market capitalisation of TVS Motors Company as of early March 2018 is close to Rs.30,880 crore.
Company's Wealth and Recent Performance
Q1 FY 2018-19
- For the June quarter of the financial year 2018-19, TVS Motor Company Limited reported its total income to be Rs.4,171.02 crore, as against Rs.3,799.81 crore reported for the corresponding quarter of the previous fiscal year.
- The company’s expenditure for the quarter grew by a little over Rs.300 crore y-o-y to Rs.3,958.6 crore. However, the profitability of the company was not impacted by this rise in expenses.
- For the quarter ended on June 30, 2018, TVS Motor reported a net profit after tax of Rs.146.61 crore, as against Rs.129.47 crore reported for the same period, last year. This marks an improvement of 13% y-o-y.
- The company’s basic earnings per share (EPS) also grew from Rs.2.73 to Rs.3.09 y-o-y.
- For the year ended on March 31, 2018, TVS Motor Company Limited announced its consolidated total income to be at Rs.16,801.3 crore. With respect to the previous fiscal year, this marks a growth of 22% in the total revenues.
- The total expenses for the year grew by a little over Rs.2,700 crore y-o-y to Rs.15,871.1 crore.
- The company’s consolidated profit after tax for the financial year 2017-18 was reported to be Rs.664.78 crore - a significant improvement of 30% y-o-y. Consequently, the company’s consolidated earnings per share also grew from Rs.10.76 to Rs.13.73 y-o-y.
- TVS Motors’ consolidated non-current liabilities recorded an increase of more than 350% y-o-y. As of March 31, 2018, its total non-current liabilities stood at Rs.2,502.17 crore, as against Rs.694.5 crore for the previous fiscal year.
Q3 FY 2017-18
- TVS Motor Company announced a rise worth 16.3% in its net profit. This amounted to a net profit worth Rs.154.35 crore throughout the year for the quarter that wrapped up in December 2017.
- Sales of the company stood at Rs.3,684.95 crore for the quarter. The increase in the sales was worth 23.5% or Rs.2,983.38 crore in the last year.
- The earnings of the company before tax, interest, amortization margin, depreciation, stood at 7.8% in comparison to 7.3% in the quarter of 2016 December.
- The net profit increased because of a better mix of products on offer that comprised scooters and motorcycles.
- The revenues made during the three-month period to December crossed a prediction made by a Bloomberg analyst who estimated a rise of Rs.3,579 crore.
- The company produced 8,26,246 units of motorcycles that amounts to an increase of 14.9%. The volume of scooters produced were 2,69,000 which indicated a rise of 21.7%.
TVS Motor Company Limited Stock Trends in 2018
- On January 1, 2018, the Open Price of TVS Motors Company stocks was Rs.773.85 at NSE and Rs.764.00 at BSE. However, the Last Price declined to Rs.695.10 at BSE and Rs.696.80 at NSE.
- On the first day of February 2018, the Open Price of the stocks stood at Rs.696.00 at NSE and Rs.696.00 at BSE. The Last Price was recorded at Rs.681.05 and Rs.680.95 at BSE and NSE respectively. The High Price was recorded at Rs.682.95 at NSE while at BSE, it was Rs.683.50.
- For most of February, the share price of TVS Motors Company Limited fluctuated at levels varying from Rs.620 - Rs.660. A sharp spike was seen in the final week of the month which took the shares to levels above Rs.670.
- In March, the company announced an interim dividend of 130%. However, this didn’t help the scrip make any gains as the markets were plagued by uncertainties in the international arena. As a result, the stock price of TVS Motor went down gradually in March to end the month at Rs.619.30.
- The shares managed to gain a little over 8% in April. They went up to be traded at levels above Rs.660, although they shed all those gains gradually in the month of May. On May 24, the stocks were seen trading hands at levels below Rs.570.
- Through most of June, the shares were seen trading hands at levels varying from Rs.560 - Rs.580. The prices dipped further in July and the scrip eventually reached its 52-week low at Rs.507. Things didn’t change considerably in the month of August as the shares were traded at levels below Rs.550.
- The prices rose slightly in September as the shares ascended to their previous levels at Rs.580.
Limited Stock Trends in 2016 and 2017
- In 2016, on January 1, the Open Price of TVS Motors Company's shares stood at Rs.290.00 at NSE and Rs.289.10 at BSE. The Last Price on NSE was Rs.286.35. Throughout the month, the price of the share hovered around Rs.250 at both, BSE and NSE. However, The Last Price at BSE had dropped to Rs.277.65.
- In April 2016, the Open Price of TVS Motors Company share price was Rs.326.50 at NSE. In the month of May 2016, the Open price was around Rs.316.00 at NSE while at BSE, it was around the same.
- In the month of August 2016, the Open Price of a share of TVS Motors was Rs.293.40 at NSE and Rs.296.00 at BSE. Throughout the month, the share price rose up to more than Rs.300 at both NSE as well as BSE. The Last Price went up to Rs.327.00 at BSE and Rs.327.70 at NSE. It will be safe to say that in this particular month, the share price saw a significant rise.
- In the month of September 2016, the Open Price of a share of TVS Motors Company was Rs.327.00 at NSE and Rs.328.00 at BSE. Throughout the month, the price kept fluctuating from Rs.312 to Rs.330. The Last Price at BSE was Rs.341.00 and Rs.345.05 at NSE.
- The Open Price in the month of December 2016 stood at Rs.373.50 at NSE and Rs.Rs.370.00 at BSE. On January 2, 2017, the Last Price was recorded at Rs.366.15 at BSE and Rs.367.65 at NSE. There was a downward trend that was observed during this period.
- On April 3, 2017, the Open Price of a share of TVS Motors Company was recorded at Rs.430.80 at NSE while at BSE, the Open Price stood at Rs.430.00. The Open Price of a share on May 2, 2017, was reported to be at Rs.494.50 at both, BSE and NSE. Hence, there was a slight increase in the price of the shares. The Last Price in May, 2017 stood at Rs.542.00 at NSE and Rs.538.10. So, during this period there was a considerable increase in the share price.
- The Open Price on September 1, 2017, stood at Rs.607.90 at BSE and Rs.605.50 at NSE. The Last price recorded at the end of the month was at Rs.653.50 at NSE and Rs.654.65 at BSE. Hence, the increase in the share price continued in this period as well.
- The month of December 2017, witnessed an Open Price of Rs.726.00 at BSE and Rs.724.10 at NSE. This was a significant increase from the price of the last period. Throughout the month, the share price revolved around Rs.750 at both BSE and NSE.
Should You Invest in TVS Motors?
TVS Motors Company is a reputed with years of experience in manufacturing motorcycles and bikes. The price of the shares have almost doubled in the last financial year which makes it a lucrative investment for people. With significant mergers and big business plans on the cards, this company will make for a good investment idea.
Ranked as India's third largest two-wheeler makers with a turnover of Rs.13,363.42 crore (according to the quarterly report of 2016-17). The annual production capacity of the company is 3.2 million two wheelers and 1.2 lakh three wheelers. TV Motors Company has 90 different entities under its umbrella. It is a member of the prestigious TVS group that earns a revenue of almost Rs.40,000 crore (as per the quarterly report of 2015-16).
History of the Company
TVS was incepted by Mr. TV Sundaram Iyengar. The first bus service in Delhi began in the year 1911 and with Mr. Sundaram started the entity named TV Sundaram Iyengar and Sons Limited. This company dealt in the transportation business with a number of buses and trucks that were registered under the title Southern Roadways Limited. After Mr. Sundaram's demise in the year 1955, his sons took charge of the company and forayed into several avenues in the automobile industry like aviation, two-wheelers and three wheelers, logistics, tyres and components, and insurance. In the year 1980, TVS 50 was rolled out that went on to become India's first two-seater moped. The factory was set up in Hosur, Tamil Nadu. Later, the company made a technical collaboration with the Suzuki Limited, the Japanese auto giant.
Venu Srinivasan, Managing Director and Chairman
Mr. Srinivasan is the grandson of TV Sundaram Iyengar, the founder of TVS. He started his career as a mechanic servicing card and bikes in his own garage during his vacations. He pursued BTech and MBA from Purdue University (USA). He took over responsibilities of a CEO in Sundaram-Clayton in the year 1979. In the same year, TVS Motor Company was launched and under Mr.Srinivasan's able leadership and guidance, it expanded to be the third largest two-wheeler manufacturing outlet in India. In the year 2010, Mr. Srinivasan was awarded with the prestigious Padma Shri award. He was conferred with an esteemed civilian honour of "Order of Diplomatic Service Merit." In 2004, he was awarded the JRD Tata Corporate Leadership Award by the All-India Management Association (AIMA).
Sudarshan Venu, Joint Managing Director
Mr.Sudarshan holds a degree with honours in the Jerome Fisher Program in Management and Technology from the University of Pennsylvania. He also pursued BS in Economics from the Wharton School and BS in Mechanical Engineering from the School of Engineering. He holds a Master's degree in International Technology Management from the Warwick Manufacturing Group in association with the University of Warwick in the UK. His passion for motorbikes has made him ride in 4 different continents. Under Mr.Sudarshan's leadership, the TVS Motors Company has expanded in Central America in partnership with Guatemala-based company, Masesa.
TVS Motors in NSE, BSE, and Indices
TVS Motors Company stocks are available for trading on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The codes for the same are mentioned below:
BSE Code: 532343
NSE Code: TVSMOTOR
Sector: Auto-2 & 3 Wheeler
Apart from this, TVS Motors Company is also a part of a number of indices some of which are mentioned below:
- Nifty 200
- Nifty 500
- Nifty Full Midcap 100
- Nifty Midcap 50
- Nifty Midcap Liquid 15
- S&P BSE 200
- S&P BSE Auto
- S&P BSE MidCap Select Index
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