Explore the fundamental and technical analysis of TVS Motor share price to gain valuable insights into its performance. Delve into key financial ratios, price action patterns, and indicators to make informed investment decisions.
Introducing TVS Motor share price, a segment of Sundaram Clayton Ltd within the TVS Group, renowned for its expertise in two-wheelers and three-wheelers, as well as automotive components and financial services. With a diverse lineup including motorcycles like the Apache series, TVS Victor, Star City, Wego, Scooty Pept, and Scooty Zest, alongside the iconic TVS King three-wheelers, TVS Motor operates manufacturing facilities across Tamil Nadu, Karnataka, and Himachal Pradesh, India, and Karawang, Indonesia. Its market extends across the Middle East, Africa, Southeast Asia, the Indian subcontinent, and Latin and Central America, with its headquarters located in Chennai, India.
Table of Contents
TVS Motor Company, commonly referred to as TVS, is an illustrious Indian multinational motorcycle manufacturer headquartered in Chennai, holding a prestigious position as one of the world’s largest two-wheeler companies. The company specializes in a diverse array of vehicles, including Racing-inspired Apache bikes, commuter motorcycles, scooters, mopeds, and three-wheelers.
Ranked as the third-largest two-wheeler company in India, TVS Motor Company boasts a staggering revenue exceeding ₹18,217 crores (equivalent to over US$2.9 billion). Its impressive annual sales surpass 3 million units, with a production capacity exceeding 4.95 million vehicles. Notably, TVS Motor stands as the second-largest exporter in India, catering to over 60 countries worldwide.
With a commitment to innovation and excellence, TVS Motor manufactures the widest range of two-wheelers, spanning from mopeds to scooters, commuter motorcycles, and the renowned racing-inspired Apache series, including the iconic RR310. The company’s strength lies in its extensive research and development endeavors, consistently delivering industry-leading products characterized by innovation and performance.
Central to TVS Motor’s philosophy is the unwavering dedication to customer satisfaction. By anticipating and understanding customer needs, the company ensures the timely delivery of quality vehicles at competitive prices. TVS prides itself on offering innovative, user-friendly, and environmentally sustainable products, complemented by dependable customer service.
With a loyal customer base exceeding 44 million, TVS Motor has garnered widespread acclaim and recognition. The company operates four state-of-the-art manufacturing plants, with three located in India (Hosur in Tamil Nadu, Mysore in Karnataka, and Nalagarh in Himachal Pradesh) and one in Karawang, Indonesia.
Since its listing on September 21, 1990, on both the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE), TVS Motor Company Limited has maintained a formidable presence in the Indian stock market. As a constituent of prominent indices such as the Nifty 50 on NSE and the BSE Sensex on BSE, TVS Motor continues to showcase robust performance and install investor confidence.
- Norton Motorcycle Company
- Sundaram Auto component Ltd.
- TVS Motor Service Ltd.
- TVS Motor Company Indonesia
- TVS Motor Co. (Europe) B.V.
- TVS Motor (Singapore) Pvt Ltd.
- TVS Housing Ltd.
Share Holding Pattern of TVS Motor Company Limited
These figures represent significant actions taken by a company that directly influence shareholder value. They signify material changes within the company and have an impact on its stakeholders:
- Promoter Shareholding: 50.27%
- FII (Foreign Institutional Investor) Shareholding: 20.83%
- DII (Domestic Institutional Investor) Shareholding: 3.63%
- MF (Mutual Fund) Shareholding: 16.63%
- Retail and Others: 8.65%
When delving into the fundamental analysis of TVS Motor Company Limited, it’s imperative to scrutinize various financial ratios spanning profitability, liquidity, solvency, efficiency, valuation, and growth. These ratios offer valuable insights into the company’s financial health, operational efficiency, and investment potential over the years.
Fundamental Analysis of TVS Motor Company Limited | ||||
Ratio | March 2024 | March 2023 | March 2022 | March 2021 |
Profitability Ratio | ||||
Gross Profit Margin | 26.51% | 34.81% | 33.25% | 22.12% |
Net Profit Margin | 6.55% | 5.65% | 4.29% | 3.65% |
Return on Equity (ROE) | 24.86% | 24.14% | 17.20% | 15.53% |
Liquidity Ratio | ||||
Current Ratio | 1.02 | 0.885 | 0.928 | 0.966 |
Quick Ratio (Acid-Test Ratio) | 0.914 | 0.785 | 0.809 | 0.841 |
Solvency Ratio | ||||
Debt to Equity Ratio | 3.76 | 3.96 | 2.50 | 3.13 |
Interest Coverage Ratio | 2.42 | 2.43 | 2.13 | 1.94 |
Efficient Ratio | ||||
Inventory Turnover Ratio | 13.80 | 11.70 | 10.80 | 10.15 |
Account Receivable Turnover Ratio | 25.49 | 25.95 | 20.40 | 17.12 |
Valuation Ratio | ||||
Price to earning Ratio (P/E) | 60.62 | 38.51 | 39.27 | 46.77 |
Price to Book Ratio (P/B) | 15.07 | 9.30 | 6.76 | 7.26 |
Growth Ratio | ||||
Earning per Share (EPS) Growth | 35.50 | 27.97 | 15.93 | 12.51 |
Revenue Growth | 31,924.90 | 26,478.66 | 20,809.50 | 16,783.51 |
Profitability Ratio
Gross Profit Margin:
The decline in the Gross Profit Margin from 34.81% in March 2023 to 26.51% in March 2024 suggests a decrease in the company’s efficiency in generating profits from its revenue. However, the margin remains relatively stable compared to previous years, indicating that TVS Motor is still efficient in its production processes.
Net Profit Margin:
The upward trend in the Net Profit Margin indicates that TVS Motor has been able to improve its bottom-line profitability by effectively managing costs and increasing revenue. This suggests that the company’s efforts in cost management are paying off, leading to higher profitability.
Return on Equity (ROE):
The consistent growth in ROE over the years signifies that TVS Motor is effectively utilizing shareholders’ equity to generate profits. This indicates strong management efficiency and effective allocation of resources, which is positive for shareholders.
Liquidity Ratio
Current Ratio:
The Current Ratio around 1 indicates that TVS Motor has sufficient current assets to cover its short-term liabilities. This suggests that the company is in a good position to meet its short-term obligations without facing liquidity issues.
Quick Ratio:
Similarly, the Quick Ratio above 0.8 indicates that TVS Motor can meet its short-term obligations without relying heavily on inventory. This suggests that the company has good liquidity management practices in place.
Solvency Ratio
Debt to Equity Ratio:
The fluctuating Debt to Equity Ratio suggests that TVS Motor has been relying on debt financing to some extent to support its operations and investments. While this can help fuel growth, it also increases financial risk due to higher debt levels.
Interest Coverage Ratio:
The Interest Coverage Ratio above 1 indicates that TVS Motor has sufficient earnings to cover its interest expenses. This suggests that the company is able to meet its debt obligations without significant financial strain.
Efficiency Ratio
Inventory Turnover Ratio:
The upward trend in the Inventory Turnover Ratio indicates that TVS Motor is selling its inventory more efficiently, which can lead to better cash flow and profitability.
Account Receivable Turnover Ratio:
Similarly, the increasing Account Receivable Turnover Ratio suggests that TVS Motor is collecting its receivables more efficiently, which improves cash flow and reduces the risk of bad debts.
Valuation Ratio
Price to Earning Ratio (P/E):
The relatively high P/E Ratio suggests that TVS Motor’s stock may be overvalued compared to its earnings. Investors should consider whether the current stock price accurately reflects the company’s growth prospects and financial performance.
Price to Book Ratio (P/B):
The high P/B Ratio indicates that TVS Motor’s stock may be trading at a premium relative to its book value. Investors should assess whether the premium is justified based on the company’s growth potential and market position.
Growth Ratio
Earnings per Share (EPS) Growth:
The strong growth in EPS suggests that TVS Motor is expanding its earnings base, which is positive for shareholders. This indicates that the company is growing its profitability over time.
Revenue Growth:
Similarly, the robust revenue growth indicates that TVS Motor is increasing its top-line revenue, which reflects strong demand for its products and services.
In conclusion, a comprehensive analysis of TVS Motor Company Limited’s financial ratios indicates a mixed performance across different aspects of its operations. While the company demonstrates strengths in profitability, efficiency, and growth, there are areas of concern, particularly in terms of solvency and valuation. Investors should carefully consider these factors before making investment decisions regarding TVS Motor Company Limited.
Technical Analysis of TVS Motor Company Limited
Technical analysis of TVS Motor share price involves evaluating price movements and trading volumes to forecast future price movements. Technical analysis depends on charts and statistical indicators. analysts use various techniques, such as trend analysis, chart patterns, and technical indicators like moving averages or relative strength index (RSI), to identify potential buying or selling opportunities for TVS Motor share price. The main goal of technical analysis of TVS Motor share price is to predict future price movements based on historical data and market psychology, helping investors make informed decisions about when to enter or exit trades. So, bellow we are explaining Various techniques as of 14th May 2024 for technical analysis of TVS Motor Company Limited.
Price Action
Price action and price level of TVS Motor Share Price (As of 14th May 2024) | |||
Price action | Daily Timeframe | Weekly Timeframe | Monthly Timeframe |
Candlestick | Strong Bullish Continuous Candlestick pattern | Strong Bullish Continuous Candlestick pattern | Hammer Candlestick is forming |
Chart Pattern | Inverted Head and Shoulder Pattern | Falling Wedge Pattern | Strong consolidation Pattern |
Price Support Level | 2060-2080 | 1870-1900 | 1800-1860 |
Price Level | 2134 is Current TVS Motor Share Price | 52 weeks High 2313.45 | 52 weeks low 1220 |
Daily Timeframe
Candlestick Pattern:
On a daily basis, TVS Motor Share Price exhibits a strong bullish continuous candlestick pattern. This indicates that within the span of a single trading day, the stock has shown consistent upward momentum, with buyers dominating the market. The breakout above the 2125 level, accompanied by decent volume, suggests a significant increase in buying interest. Despite a previous rejection by buyers, the stock has undergone a decent correction and appears poised for further upward movement.
Inverted Head and Shoulder Pattern:
On a daily basis, TVS Motor Share Price has activated an inverted head and shoulder pattern. This bullish reversal pattern suggests a potential upward movement in the stock price. Despite a correction of almost 19% from its high, the activation of this pattern indicates that buyers are regaining control and may drive the market in an upward direction.
Price Support Levels:
The price support levels for TVS Motor Share Price range between 2060-2080, indicating areas where buying interest may emerge, providing support for the stock’s price during pullbacks.
Weekly Timeframe
Candlestick Pattern:
Zooming out to the weekly timeframe, TVS Motor Share Price continues to display a strong bullish continuous candlestick pattern. This suggests that over the course of a week, the bullish sentiment in the market has persisted. The stock has broken out of a downtrend range around the 2110 level, indicating a potential reversal in the trend. Sustained trading above the resistance trendline further reinforces the bullish outlook, with the potential to reach its all-time high.
Falling Wedge Pattern:
In the weekly timeframe, TVS Motor Share Price has activated a falling wedge pattern. This bullish continuation pattern occurs when the price consolidates within converging trendlines before breaking out to the upside. The breakout above the resistance trendline suggests a bullish sentiment in the market, with the potential for the stock to move towards its all-time high.
Price Support Levels:
For the medium term, strong support levels are identified between 1870-1900, suggesting significant buying interest and potential reversal points for the stock.
Monthly Timeframe
Candlestick Pattern:
Looking at the monthly timeframe, TVS Motor Share Price is forming a hammer candlestick pattern. This indicates a significant rejection from the low around 1918. A hammer candlestick pattern typically signals a potential reversal in the trend, with buyers regaining control after a period of downward pressure. If the stock crosses the 2200 level within the month, there is a high probability of creating a new high within the next quarter.
Consolidation Pattern:
On a monthly basis, a strong consolidation pattern is observed in TVS Motor Share Price. This indicates a period of stability and equilibrium in the market, with the price consolidating within a defined range. The presence of this pattern suggests that there is less likelihood of the stock dropping below the 2000 level in the near term.
Price Support Levels:
In a serious case scenario, price support levels are identified between 1800-1860, indicating critical levels where substantial buying interest is expected to prevent further decline in TVS Motor Share Price.
Price Levels
The current TVS Motor Share Price stands at 2134 on the daily timeframe. While the stock may experience a slight dip for breakout retesting, the overall bullish sentiment suggests potential for upward movement in the near term.
TVS Motor Share Price has recorded a 52-week high of 2313.45 and a low of 1220 on the weekly timeframe. These levels represent the highest and lowest prices reached by the stock over the past year, providing insights into its price range and performance.
In conclusion, the analysis of TVS Motor Share Price across different timeframes reveals a predominantly bullish sentiment, supported by various price action patterns, chart patterns, and price support levels. However, investors should exercise caution and consider potential risks before making investment decisions.
Indicators Use for Technical Analysis
Bolinger Band (BB):
Bolinger Band Price level in TVS Motor Share Price (As of 14th May 2024) Key Word- “TVS Motor Share Price” | |||
| Upper Band | Median | Lower Band |
Bolinger Band | 2128.17 | 2014.22 | 1900.27 |
The Upper Band of the Bollinger Bands indicates the upper boundary of the stock’s price movement. In this context, the Upper Band is at 2128.17, indicating that TVS Motor Share Price closed above this level. This suggests that the stock has exhibited upward momentum, potentially signaling a bullish trend. Closing above the Upper Band can indicate strong buying pressure and may suggest further upside potential for the stock.
The Median, or the middle line of the Bollinger Bands, serves as a reference point for the average price level. In this case, the Median is at 2014.22, indicating a level of stability and equilibrium in TVS Motor Share Price. The fact that the stock closed above the Median suggests that there is strong support for the stock around this level. This indicates that investors are willing to buy the stock at this price, potentially leading to a rebound in the price if it were to decline.
The Lower Band of the Bollinger Bands represents the lower boundary of the stock’s price movement. In this instance, the Lower Band is at 1900.27, indicating a medium-term support level for TVS Motor Share Price. This suggests that the stock has a solid support level around this price, which may prevent further downside movement. The fact that the stock closed above this level indicates that there is buying interest in the stock, potentially leading to a reversal in the price if it were to decline further.
Moving Average (MA):
Moving Average price level in daily candlestick of TVS Motor Share Price (As of 14th May 2024) Key Word- “TVS Motor Share Price” | ||
Moving Average | 100 Day | 200 Day |
Simple Moving Average (SMA) | 2060.123 | 1811.10 |
Exponential Moving Average (EMA) | 2002.67 | 1833.91 |
Simple Moving Average (SMA):
The 100-day Simple Moving Average stands at 2060.123, indicating a strong support level in the daily timeframe for TVS Motor Share Price. This suggests that over the past 100 days, the average closing price of the stock has provided solid support, potentially acting as a floor for the price during pullbacks.
The 200-day Simple Moving Average is at 1811.10, indicating both medium and long-term support for TVS Motor Share Price. This suggests that over a longer period, spanning 200 days, the average closing price has acted as a significant support level. Investors often look to this moving average to assess the stock’s overall trend and potential reversal points.
Exponential Moving Average (EMA):
The 100-day Exponential Moving Average stands at 2002.67, indicating strong support in the daily timeframe for TVS Motor Share Price. The EMA gives more weight to recent price data, making it more responsive to current price movements. The fact that the 100-day EMA is above the current price suggests bullish sentiment and potential support for the stock.
The 200-day Exponential Moving Average is at 1833.91, indicating both medium and long-term support levels. Similar to the 200-day SMA, the 200-day EMA provides a longer-term perspective on the stock’s price movement. The fact that the EMA is above the current price suggests potential buying interest and support for the stock over the long term.
In summary, both Simple and Exponential Moving Averages provide valuable insights into the support levels of TVS Motor Share Price in the daily candlestick. The data indicates strong support levels in both the short and long term, suggesting potential buying opportunities for investors.
Data Analysis
Open Interest Put Call Ratio of TVS Motor Company Ltd
Open Interest Put Call Ratio of TVS Motor Company Ltd | ||||
Expiry Date | Put Open Interest | Call Open Interest | PCR OI | Signal |
30/05/2024 | 2391.90 K | 3234.00 K | 0.740 | Bullish |
27/06/2024 | 66.50 K | 84.70 K | 0.785 | Bullish |
The Open Interest Put Call Ratio (PCR) for TVS Motor Company Ltd indicates a bullish sentiment for both expiry dates. With higher call open interest compared to put open interest, the PCR OI values of 0.740 and 0.785 for 30th May 2024 and 27th June 2024 respectively reinforce this bullish outlook. Traders may anticipate potential upward price movements for TVS Motor Company Ltd during these periods.
Volume Put Call Ratio of TVS Motor Company Ltd
Volume Put Call Ratio of TVS Motor Company Ltd | ||||
Expiry Date | Put Total Contracts | Call Total Contracts | PCR Volume | Signal |
30/05/2024 | 11840.00 | 41262.00 | 0.287 | Strong Bullish |
27/06/2024 | 97.00 | 141.00 | 0.688 | Bullish |
The Volume Put Call Ratio (PCR) for TVS Motor Company Ltd highlights a strong bullish sentiment for both expiry dates. With significantly higher call total contracts compared to put total contracts, the PCR Volume values of 0.287 and 0.688 for 30th May 2024 and 27th June 2024 respectively reinforce this positive outlook. Traders may interpret these ratios as indicative of potential upward price movements for TVS Motor Company Ltd during these periods.
Conclusion
In conclusion, based on our comprehensive analysis of TVS Motor Company Limited and its various facets, including financial performance, technical indicators, and market sentiment, we strongly recommend considering an investment in TVS Motor share price. The company demonstrates robust financial health, with positive trends in profitability, efficiency, and growth. Technical analysis reveals a predominantly bullish sentiment, supported by strong price action patterns and identified price support levels across different timeframes.
Moreover, open interest put call ratios suggest anticipation of upward price movements in the stock. Considering these factors, we believe that TVS Motor shares present an attractive investment opportunity. However, investors should conduct their own research and consult with financial advisors before making investment decisions. It’s crucial to align investment strategies with individual risk tolerance and financial goals. Overall, TVS Motor shares have the potential for growth and value appreciation, making them an appealing addition to investment portfolios.
FAQs
- What is TVS Motor Company Limited?
TVS Motor Company Limited is an Indian multinational motorcycle manufacturer headquartered in Chennai, India. It is one of the largest two-wheeler companies globally.
- What products does TVS Motor offer?
TVS Motor offers a wide range of products, including motorcycles, scooters, mopeds, and three-wheelers. Their lineup includes popular models like the Apache series, TVS Victor, Star City, Wego, Scooty Pept, Scooty Zest, and the TVS King three-wheeler.
- Where are TVS Motor’s manufacturing plants located?
TVS Motor operates manufacturing plants in various locations, including Hosur and Mysore in India (Tamil Nadu and Karnataka, respectively), Nalagarh in Himachal Pradesh, India, and Karawang, Indonesia.
- What is TVS Motor’s financial performance like?
TVS Motor has demonstrated strong financial performance, with impressive revenue exceeding ₹18,217 crores (over US$2.9 billion) and an annual sales volume of more than 3 million units.
- What is TVS Motor’s position in the Indian market?
TVS Motor is the third-largest two-wheeler company in India, with a significant market share and a strong presence across the country.
- How has TVS Motor performed in terms of profitability?
TVS Motor has maintained healthy profitability ratios, including gross profit margin, net profit margin, and return on equity (ROE), reflecting its efficiency in generating profits from its operations.
- What are some key subsidiaries of TVS Motor Company Limited?
Some subsidiaries of TVS Motor Company Limited include Norton Motorcycle Company, Sundaram Auto Component Ltd., TVS Motor Service Ltd., and PT. TVS Motor Company Indonesia.
- What is the shareholding pattern of TVS Motor Company Limited?
TVS Motor Company Limited’s shareholding pattern includes significant ownership by promoters, foreign institutional investors (FIIs), domestic institutional investors (DIIs), mutual funds (MFs), and retail investors.
- How has TVS Motor’s stock price performed recently?
TVS Motor’s stock price has shown positive momentum recently, with bullish technical indicators and favorable open interest put call ratios suggesting potential upward price movements.
- Is TVS Motor a good investment opportunity?
Based on its strong financials, market position, and favorable technical indicators, TVS Motor presents a compelling investment opportunity for those looking to invest in the automotive sector. However, investors should conduct thorough research and consider their risk tolerance before making investment decisions.
