TVS Holdings Limited

Consumer Cyclical — Auto Parts · NSE

₹11,500.00−₹88.00 (−0.76%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of TVS Holdings Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

TVS Holdings Limited provides automotive vehicles and parts in India and internationally. It offers two and three-wheelers; and mobility solutions through a portfolio of e-bikes, e-cargo bikes, and matching accessories.

IndustryAuto Parts

SectorConsumer Cyclical

Employees60

Annual revenue₹55,653 Cr

How does it make money?

Turns over ₹55,653 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 60 employees supports ₹927.55 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin16.6%

Net margin3.0%

Revenue / employee₹927.55 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Little sign of one

Returns on capital of 15.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE15.0%

ROE26.2%

Peer median ROE23.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +70% while net margin moved +54% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+70%

Margin effect+54%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.29 — historically steadier than the index
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

67/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

86/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

11.8x

3Y Median

24.9x

40 monthly readings · mean 25.1x · range 13.7x–42.9x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 53% below its 3y median of 24.9x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 74% below the peer median of 45.7x.

vs. its own history

Cheap

24.9x median over 40 months · -53%

vs. sector peers

Cheap

45.7x median of 4 peers · -74%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

11.8x

P/B

3.60x

EV/EBITDA

6.0x

PEG

0.31

Dividend Yield

0.75%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 12.9% to 16.6% over 3 years.
Return on equity is rising
ROE has improved from 20.0% to 26.2%.
Return on capital is rising
ROCE has improved from 10.4% to 15.0%.
Valuation below its historical average
At 11.8x the stock trades 53% below its own median of 24.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 46% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

4 items require attention · 2 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.90x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Debt is increasingFinancial
Total debt is up 46% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹2,156 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.9% to 16.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 53% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 74% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 14% a year✓ 19.3% CAGR
Latest reported year was 35.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹2,156 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 3.0x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹23,267 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.8x

Cheap

Cheap against the generic band

P/B Ratio

3.60x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹973.88

Profitable

Profitable on a per-share basis

ROE

26.2%

Strong

Strong capital efficiency

ROCE

15.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.90x

High

High leverage

Revenue Growth (YoY)

35.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

81.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.75%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹2,156 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹11,500

Operating Margin

0.2%

Weak

Thin margins leave little room for error

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

3.95

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

12034.9 / 13016.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

13.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹32,764 Cr	₹38,807 Cr	₹43,409 Cr	₹55,653 Cr	+19.3%
EBITDA	₹4,235 Cr	₹5,735 Cr	₹6,732 Cr	₹9,239 Cr	+29.7%
EBITDA Margin	12.9%	14.8%	15.5%	16.6%	—
PAT (Net Profit)	₹650 Cr	₹800 Cr	₹1,164 Cr	₹1,696 Cr	+37.7%
EPS	₹321.1	₹395.6	₹575.41	₹838.12	+37.7%
ROE	20.0%	28.2%	24.8%	26.2%	—
ROCE	10.4%	13.8%	13.0%	15.0%	—
Total Debt	₹25,013 Cr	₹26,965 Cr	₹33,517 Cr	₹36,424 Cr	+13.3%
Free Cash Flow	-₹5,596 Cr	-₹1,986 Cr	₹1,052 Cr	-₹2,156 Cr	—

🟢 Revenue has grown at 19.3% a year over 3 years.

🟢 EBITDA has grown at 29.7% a year over 3 years.

🟢 EBITDA Margin has risen from 12.9% to 16.6% over 3 years (+3.7 pts).

🟢 PAT (Net Profit) has grown at 37.7% a year over 3 years.

🟢 EPS has grown at 37.7% a year over 3 years.

🟢 ROE has risen from 20.0% to 26.2% over 3 years (+6.2 pts).

🟢 ROCE has risen from 10.4% to 15.0% over 3 years (+4.6 pts).

🔴 Total Debt has grown at 13.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹64,008 Cr

Total Liabilities

₹51,116 Cr

Total Debt

₹36,424 Cr

Cash & Equivalents

₹4,621 Cr

Operating Cash Flow

₹1,137 Cr

Capex

-₹3,293 Cr

Shareholding (proxy)

Institutional Holding

11.5%

Insider Holding

75.9%

Corporate Actions

Dividend Rate

₹86

Ex-Dividend Date

02 Apr 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 mixed5 general

TVS Holdings Share Price: price action and fundamentals

Univest, 15 Oct

Here's Why We Think TVS Holdings (NSE:TVSHLTD) Might Deserve Your Attention Today

Simply Wall Street, 14 May

46:1 bonus stock: Record date soon - Check face value and share price performance

Livemint, 04 Sept

NCLT Chennai Approves TVS Holdings Scheme For 46 Bonus Preference Shares Per Equity Share

LiveLawBiz, 20 Aug

TVS Holdings Q1 results: Revenue soars 34% YoY to ₹17,076 crore, EBITDA margin expands

Upstox, 21 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

NCLT sanctions TVS Holdings bonus preference share scheme

scanx.trade, 19 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate11.7/20

🟡Financial HealthAdequate9.2/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong10.6/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 14% a year19.3% CAGR
✓EBITDA margin holds above 15%16.6%
✗Debt / EBITDA falls below 3x3.9x
✗Free cash flow remains positive-₹2,156 Cr
✗Interest cover stays above 3x3.0x