TVS Motor Company Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

TVS Motor Company Ltd trades at ₹3,618, losing momentum at the top and 6 weeks into that stage. That is +4.4% against its own 200-day average. It sits at 58% of a 52-week range of ₹3,277 to ₹3,870. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks.

Today the stock is losing momentum at the top — week 6 of stage 3, confirmed. At ₹3,618 it trades +4.4% versus its 200-day average and sits at 58% of its 52-week range (₹3,277–₹3,870).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +1,268% while the NIFTY 500 moved +280% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 2 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 56th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

TVS Motor Company Ltd trades at 53.2× P/E, mid-range by its own standards (56th percentile). Its long-run median P/E is 50.3×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 53.2× is mid-range by its own standards (56th percentile), against a long-run median of 50.3× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +35.0% against a +27.0% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +42.7%/yr price move, ~+41.9%/yr came from earnings growth and ~+0.8 pp from the multiple (roughly flat); over 10y, of the +28.0%/yr price move, ~+24.3%/yr came from earnings growth and ~+3.7 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

TVS Motor Company Ltd reads as consistent on its fundamental arc. Consistent — revenue, profit and EPS growth have stayed positive through the window, with ROCE at 17.0% and holding. The read is built from 12 quarters across 4 curves, on partial evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

46.3/100 — rank 6 of 8 in Auto - 2 & 3 Wheelers · 97% evidence confidence

TVS Motor Company Ltd scores 46.3 out of 100 against the 8 companies it is compared with in Auto - 2 & 3 Wheelers, ranking 6. Acceleration candidate, not a confirmed leader: earnings are strong but sector-relative strength is -6.8% and the one-year return is 27%. Do not upgrade until sector-relative strength is above zero and another reported period confirms growth.

The four contributions add to the total exactly: 23.9 + 10.1 + 9.3 + 3 = 46.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

TVS Motor Company Ltd reported ₹16,296 Cr of revenue in the Jun 26 quarter, +33.5% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 17.3% a year. The last full year, FY26, came in at ₹56,070 Cr. The last four reported quarters add to ₹60,156 Cr.

TVS Motor Company Ltd reported ₹16,296 Cr of revenue in the Jun 26 quarter, +33.5% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 17.3% a year. The last full year, FY26, came in at ₹56,070 Cr. The last four reported quarters add to ₹60,156 Cr.

FY26 revenue came in at ₹56,070 Cr (+27.2% on the year), capping 10 years at 17.3% compound. The latest quarter (Jun 26) printed ₹16,296 Cr, +33.5% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +30.5% growth against the decade's 17.3% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +30.5% over the last 4 quarters against +22.2%/yr over the last 8 — accelerating; TTM profit +41.9% vs +40.6%/yr — stabilising.

→ Revenue grew — did margins hold as it scaled? Next: 14.0% this quarter (−1.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

TVS Motor Company Ltd's operating margin is 14.0% in the Jun 26 quarter, −1.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 6.0% to 15.0%. The current quarter sits inside that band.

TVS Motor Company Ltd's operating margin is 14.0% in the Jun 26 quarter, −1.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 6.0% to 15.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 14.0%, −1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 6.0%–15.0%, and FY26's 15.0% is the top of that band — a record year.

🚨 Why the margin moved: operating margin went −0.4 pp year on year while gross margin went −2.8 pp — the loss came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

→ Margins slipped — did that reach the bottom line? Next: profit +64.5% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

TVS Motor Company Ltd earned ₹1,058 Cr of net profit in the Jun 26 quarter, +64.5% year on year. It is the 12th consecutive quarter of growth. Full-year FY26 profit was ₹3,186 Cr. The 10-year compound rate is 22.2%. That is 6.5% of the quarter's revenue. The same quarter a year earlier earned ₹643 Cr.

TVS Motor Company Ltd earned ₹1,058 Cr of net profit in the Jun 26 quarter, +64.5% year on year. It is the 12th consecutive quarter of growth. Full-year FY26 profit was ₹3,186 Cr. The 10-year compound rate is 22.2%. That is 6.5% of the quarter's revenue. The same quarter a year earlier earned ₹643 Cr.

Jun 26 profit was ₹1,058 Cr, +64.5% year on year — the 12th consecutive quarter of growth. On the full year, FY26 printed ₹3,186 Cr (+33.9%), and the 10-year compound rate is 22.2%.

Why profit moved: revenue contributed +33.5% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +42.5% vs revenue +30.5%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

→ Profit rose — but did the cash follow? Next: 56% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 56% of TVS Motor Company Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹1,867 Cr of operating cash against ₹3,186 Cr of profit. After ₹2,870 Cr of capital spending, ₹−1,003 Cr was left as free cash.

FY26: operating cash of ₹1,867 Cr against reported profit of ₹3,186 Cr, leaving free cash of ₹−1,003 Cr after ₹2,870 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 56% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 56%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 2.3× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹7,490 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

TVS Motor Company Ltd's cash conversion cycle runs −60 days in FY26, up from −63 days in FY21. Capital spending ran ₹7,490 Cr over the last 3 years. At FY26 sales of ₹56,070 Cr each day of that cycle holds about ₹154 Cr, so roughly ₹−9,217 Cr sits inside the business at any moment.

FY26: debtors at 17 days, inventory at 26 days — roughly 0.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −60 days, looser than FY21's −63.

The full loop: cash goes out to suppliers and production on day 0; stock waits 26 days to sell; customers pay about 17 days after that; and suppliers themselves are paid at 103 days — netting out to the −60-day cycle.

In money terms: at FY26 sales of ₹56,070 Cr, each day of the cycle holds about ₹154 Cr — so the −60-day loop keeps roughly ₹−9,217 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹7,490 Cr over the last 3 fiscal years against ₹3,275 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹2,072 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 17% and the ROIC − WACC spread is +1.2 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

TVS Motor Company Ltd earns a ROCE of 17% in FY26. That is up from a trough of 11% in FY21. Return on invested capital clears the cost of that capital by +1.2 percentage points, so growth here adds value rather than only size. The wiring behind it is 5.7% net margin on 1.00× asset turns.

FY26 ROCE is 17%, recovered from a FY21 trough of 11% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 5.7% net margin × 1.00× asset turns × 5.87× balance-sheet leverage ≈ 33.5% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 13.2% − 12.0% = a +1.2 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 3.43.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

TVS Motor Company Ltd carries total debt of ₹32,791 Cr against shareholder equity of ₹10,713 Cr as of Jun 26, a debt-to-equity of 3.06. On the annual view that ratio went from 3.13 in FY22 to 3.06 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Jun 26: total debt of ₹32,791 Cr against shareholder equity of ₹10,713 Cr — a debt-to-equity of 3.06. On the annual view, debt-to-equity went from 3.13 (FY22) to 3.06 (FY26). Read the returns on this page with that leverage in mind.

→ Who owns this, and are they adding or leaving? Next: Domestic institutions added 1.0 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 1.0 points of TVS Motor Company Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 21.1% of the company. Foreign institutions moved −0.6 points over the same window, to 20.4%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +1.0 points over 8 quarters to 21.1%; Foreign institutions: −0.6 points over 8 quarters to 20.4%; Promoters: +0.0 points over 8 quarters to 50.3%.

Why the register moved: domestic institutions drove it (+1.0 points), absorbed on the other side by foreign institutions (−0.6 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

TVS Motor Company Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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