TVS Srichakra Limited

Consumer Cyclical — Auto Parts · NSE

₹4,340.00+₹80.30 (+1.89%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

TVS Srichakra Limited manufactures and sells two-wheeler, three-wheeler, and other industrial tires to original equipment manufacturers (OEMs) and replacement markets in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees2,707

Annual revenue₹3,623 Cr

How does it make money?

Turns over ₹3,623 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 2,707 employees supports ₹1.34 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.34 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 9.4% 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.

Peer median ROE23.0%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 6.2% and earnings to fall about 18.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+6.2%

Est. earnings growth-18.3%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +22% while net margin moved -25% 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+22%

Margin effect-25%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.8% — barely ahead of inflation
✗ Profit has declined at 3.0% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

61/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

36.0x

3Y Median

42.7x

40 monthly readings · mean 66.9x · range 17.9x–174.5x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 16% below its 3y median of 42.7x. 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 21% below the peer median of 45.7x.

vs. its own history

Fair

42.7x median over 40 months · -16%

vs. sector peers

Cheap

45.7x median of 4 peers · -21%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

13.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 86% against revenue up 22% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.88 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 21% 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?

Sales are being booked faster than collected
Receivables are up 86% against revenue up 22%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 6.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro 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.

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

1EBITDA margin holds above 6%✓ 8.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.0x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 5% a year✓ 6.8% CAGR
Latest reported year was 30.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹186 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 12 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
✗ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹3,323 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

36.0x

Fair

Fairly valued against the generic band

P/B Ratio

2.79x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹120.64

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

9.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.64x

Moderate

Moderate leverage

Revenue Growth (YoY)

30.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

164.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.87%

Modest

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

Free Cash Flow

₹186 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

28.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

4.1%

Weak

Thin margins leave little room for error

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.88

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.81

Market-like

Moves roughly in line with the market

52W Range Position

45%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4433.4 / 4686.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

34.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,972 Cr	₹2,912 Cr	₹3,233 Cr	₹3,623 Cr	+6.8%
EBITDA	₹238 Cr	₹304 Cr	₹231 Cr	₹294 Cr	+7.2%
EBITDA Margin	8.0%	10.4%	7.1%	8.1%	—
PAT (Net Profit)	₹78 Cr	₹108 Cr	₹21 Cr	₹71 Cr	-3.0%
EPS	₹101.85	₹140.98	₹26.92	₹93.03	-3.0%
ROE	7.5%	9.7%	1.7%	6.0%	—
ROCE	9.7%	11.5%	5.4%	9.4%	—
Total Debt	₹662 Cr	₹842 Cr	₹886 Cr	₹767 Cr	+5.0%
Free Cash Flow	-₹2 Cr	-₹23 Cr	₹36 Cr	₹186 Cr	—

🟢 Revenue has grown at 6.8% a year over 3 years.

🟢 EBITDA has grown at 7.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 8.1% over 3 years.

🔴 PAT (Net Profit) has shrunk at 3.0% a year over 3 years.

🔴 EPS has shrunk at 3.0% a year over 3 years.

🔴 ROE has fallen from 7.5% to 6.0% over 3 years (-1.6 pts).

🟡 ROCE has held roughly flat at 9.4% over 3 years.

🔴 Total Debt has grown at 5.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹186 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,043 Cr

Total Liabilities

₹1,853 Cr

Cash & Equivalents

₹20 Cr

Operating Cash Flow

₹297 Cr

Capex

-₹111 Cr

Shareholding (proxy)

Institutional Holding

6.9%

Insider Holding

53.7%

Corporate Actions

Dividend Rate

₹37.8

Ex-Dividend Date

10 Sept 2026

Analyst Consensus

Recommendations

0 Buy · 0 Hold · 2 Sell

Target Price (Mean)

₹2,800

-35.5% vs CMP

Target Range

₹2,100 – ₹3,500

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 positive3 mixed2 general

TVS Srichakra completes 51% stake acquisition in Weber Drivetrain

scanx.trade, 18 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

TVS Srichakra vs Nifty 50: 1Y Return +12.08% vs -11.35%

Univest, 13 Oct

TVS Srichakra share price jumps16% on robust Q1 earnings performance; profit jumps 165%

Upstox, 14 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Private companies in TVS Srichakra Limited (NSE:TVSSRICHAK) are its biggest bettors, and their bets paid off as stock gained 10% last week

Simply Wall Street, 12 Feb

TVS Srichakra approves ₹49.20 crore capex for capacity expansion

scanx.trade, 17 OctCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

TVS Srichakra share price declines 6% on Q2 results; check key highlights

Business Standard, 11 NovPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑