TVS Supply (TVSSCS)
TurnaroundFairStock Score: 34/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹123.39 |
| Market Cap | ₹5,443.72 Cr |
| P/E Ratio | 84.51 |
| ROCE | 4.83% |
| ROE | 1.18% |
| Dividend Yield | 0% |
| Profit Growth | -70.4% |
| Debt/Equity | 1.34 |
| Sales Growth | 28.7% |
| Promoter Holding | 43.03% |
| 52-Week Range | ₹90.32 — ₹146.3 |
| Sector | Transport Services |
| Book Value | ₹46.09 |
Strengths
- Sales growth of 11.09% shows the business is expanding.
- Piotroski F-Score of 7/9 suggests recent improvement in financial health.
- Promoter holding of 43.03% aligns management interests with minority shareholders.
- Profit growth of 153.87% shows early turnaround momentum, even if off a low base.
- Book value of ₹58 and P/B of 2.03 are not extreme if returns can normalize.
Concerns
- ROE of 1.18% and ROCE of 4.83% are far below acceptable levels for the risk taken.
- P/E of 32.39 with net profit of just ₹11 Cr on ₹2,716 Cr quarterly sales leaves no margin of safety.
- Debt/Equity of 1.12 is high for a low-return, competitive logistics business.
- Zero dividend yield and a FairStock Score of 34/100 indicate significant risk.
AI Analysis
At ₹117.53, TVS Supply has a market cap of ₹5,072 Cr. The market is asking me to pay 32.39 times earnings for a logistics company whose latest quarter shows just ₹11 Cr profit on ₹2,716 Cr of sales — a net margin of roughly 0.4%. Benjamin Graham would say price is what you pay, quality is what you get, and here the quality is thin: return on equity is 1.18%, return on capital employed is 4.83%, both far below what a shareholder could earn elsewhere or what the company is likely paying on its 1.12 debt-to-equity. The 153.87% profit growth looks exciting, but it is from a tiny base; I prefer dependable earnings power to percentage games. The 11.09% sales growth and Piotroski F-Score of 7/9 tell me operations are improving, and promoter holding of 43.03% ensures management's interests are aligned. But with no dividend, my only return comes from business performance, and a 32 P/E gives me no cushion if logistics margins stay thin. A PEG of 0.39 is seductive, but it is built on a profit jump that a single weak quarter can reverse. I would need years of higher ROCE, lower debt, and clear free cash flow before calling this a compounding machine. For now, this is a show-me story. I will watch from the sidelines unless the numbers prove durability.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer