TVS Motor Company Ltd.
ISIN: INE494B01023 • Market Cap: ₹2.07 Lakh Cr
The 5-Pillar Quality Audit for TVS Motor Company Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (14.9%), Return on Capital Employed (29.9%), and equity compounding (31.6%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 3.31 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (15.8%) and 3Y PAT CAGR (29.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 60.46 vs PEG of 3.25 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 50.3%, backed by 41.6% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 29.9%)
TVS Motor Company Ltd. generates exceptional return on capital employed of 29.9%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 31.6%)
Shareholder equity compounds at a healthy 31.6%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 15.8%)
Revenue has expanded at 15.8% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 29.3%)
Net earnings have compounded at 29.3% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (41.6%)
Mutual funds, domestic DIIs, and foreign FIIs hold 41.6%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 3.31)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Automobile and Auto Components)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Automobile and Auto Components space.
Quantitative Strategy Eligibility
Checking TVSMOTOR against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 68/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Automobile and Auto Components Sector Peer Comparison
Compare TVSMOTOR directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| TVS Motor Company Ltd. (TVSMOTOR)Current | 68/100 | ₹2.07 Lakh Cr | 60.46 | 29.9% | 3.31 | — |
| Maruti Suzuki India Ltd. (MARUTI) | 71/100 | ₹4.30 Lakh Cr | 30.02 | 15.6% | 0.00 | View |
| Mahindra & Mahindra Ltd. (M&M) | 72/100 | ₹4.24 Lakh Cr | 22.97 | 16.6% | 1.43 | View |
| Bajaj Auto Ltd. (BAJAJ-AUTO) | 77/100 | ₹3.22 Lakh Cr | 27.34 | 25.4% | 0.57 | View |
| Eicher Motors Ltd. (EICHERMOT) | 74/100 | ₹2.19 Lakh Cr | 37.86 | 23.7% | 0.01 | View |
| Samvardhana Motherson International Ltd. (MOTHERSON) | 64/100 | ₹1.80 Lakh Cr | 41.05 | 12.1% | 0.39 | View |
Frequently Asked Questions: TVS Motor Company Ltd.
Q:What is the 5-Pillar Fundamental Score for TVS Motor Company Ltd. (TVSMOTOR)?
TVS Motor Company Ltd. has a RupeeTools Fundamental Score of 68/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (86/100), Financial Health (45/100), Growth (86/100), Valuation (32/100), and Ownership Quality (85/100).
Q:Is TVSMOTOR fundamentally strong for long-term investment?
TVSMOTOR currently holds a moderate quality rating of 68/100. While it operates in the Automobile and Auto Components sector, investors should monitor its debt health before initiating long-term positions.
Q:Does TVSMOTOR pass the Coffee Can Investing filter?
Yes! TVSMOTOR satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does TVSMOTOR compare against other Automobile and Auto Components peers?
Within India's Automobile and Auto Components sector, TVSMOTOR trades at a P/E of 60.46 and generates an ROCE of 29.9%. Compare its 5-Pillar score of 68/100 against top sector peers like Maruti Suzuki India Ltd. (71/100), Mahindra & Mahindra Ltd. (72/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.