TVS MOTOR Limited

 

Industry Profile  :  Indian automobile industry is one of the largest and one of the most competitive in the world. In FY 15-16 production total was 23.96 million vehicle. The sector account for 7.1 per cent of GDP of India out of which 81% is Two wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 per cent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, create 65 million additional jobs and contribute over 12 per cent to India’s Gross Domestic Product. Maruti in Car and Hero Moto corp is in Two wheeler market are leader. Passenger Vehicle holding 13% market. Maruti Suzuki expects Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. Mr Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is a key market for the company, not only in terms of volumes but also as a hub of small products for exports to 92 countries. As many companies trying to increase revenue, rural Market is large for further growth. India is also being one of the leading exporter of automobiles and has strong export growth expectations for near future. In April-March 2016, overall automobile exports grew by 1.91 per cent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 per cent, 16.97 per cent, and 0.97 per cent respectively in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion during the period April 2000 to September 2016, according to data released by Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars for India.

Company profile  :  The company is operating in Two wheeler automobile segment. the company is third largest two wheeler manufacturer in India exporting to more than 60 countries. The company manufacturing various mopeds and scooters namely XL 100, XL 100 comfort, XL super heavy duty, Scooty PEP+, Scooty Zest 110, Wego 110, Jupiter, Jupiter ZX, Jupiter ZX (Disc), Jupiter Classic (Disc), Jupiter Classic (Disc), TVS Akula 310, TVS Apache X21 Racer, TVS Entorq, TVS Draken, TVS Victor 2016, TVS Victor GL 110, TVS Victor GX 110, TVS Victor GLX 125, TVS Victor EDGE 125, TVS Victor (2016), TVS Star 100, TVS Star DLX 100, TVS Star Sport 100, TVS Star City 100, TVS Star City 110, TVS Phoenix 125, TVS Max 4R1OO, TVS Apache E-SURGE150, TVS Apache RTR 160, TVS Apache RTR 180 and TVS Apache RTR 200 4V. For selling all their products, TVS Motor functions through a nationwide network of more than 4000 touch points across all the states in India.

Shareholding Pattern  :  Sundaram Clayton holds 57.40% as a promoter entity. 16 Mutual Funds hold 8.31%. 11 Financial Institutions hold 0.21%. 9 insurance companies holds 2.55%. 124 foreign investors hold around 20.21%. Remaining is held by public.

Financials and ratios  : 

 2010 - 112011 - 122012 - 132013 - 142014 - 152015 - 162016 - 17
Revenue6,323.647,147.917,088.847,992.0610,130.8311,295.1812,308.68
Net profit194.58249.07116.02261.63347.83432.14558.08
NPM3.07%3.48%1.63%3.69%3.43%3.82%4.53%
EPS4.105.242.445.517.329.1011.75
Book Value21.0424.6125.7829.7934.6340.7750.69
Dividend Per share1.11.31.21.41.92.502.50
Dividend Payout26.8624.8049.1425.4225.9527.4821.28
ROCE11.4913.876.2212.8514.7316.3218.27
ROE19.4621.309.4718.4821.1422.3123.17
ROA6.807.933.717.337.558.709.45
Asset Turnover220.05226.91226.49223.35219.32226.57205.52
Debt to equity0.630.610.450.340.560.390.45

Future prospectus  :  TVS is one of the well known brand in Rural india. When there is growth taking place in rural areas TVS is one of the beneficiary. It is expected that FY 19 will be good year for agriculture and rural areas. so TVS is one good bet for Rural India theme.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter