TVS Srichakra (TVSSRICHAK)

FairStock Score: 28/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At first glance, TVS Srichakra’s 743% profit growth catches the eye, but as Graham taught, we must look behind the curtain. That surge comes off a minuscule base—latest quarter net profit is just ₹11 Cr on ₹917 Cr sales, a margin of barely 1.2%. The trailing P/E of 64.29 and P/B of 2.69 versus a book value of ₹1,449 tell me the market is paying a rich price for a business that earns only 5.38% on equity and 5.36% on capital. That is hardly a stellar franchise. Tyres is a competitive, capital-intensive industry; I see no durable moat here. The debt-to-equity of 0.69 is manageable, and the Piotroski F-Score of 7 suggests recent financial health has improved, but that is a far cry from a quality compounding machine. Sales growth of 14.17% is decent, but with profit margins this thin, any input cost shock or pricing pressure will hit earnings hard. The 52-week range of ₹2,812 to ₹4,775 shows cyclicality, not stability. A PEG of 0.17 is meaningless when the 'G' is distorted by a low-base recovery. At ₹3,892, I am paying 64 times earnings for a mid-teen top-line grower with middling returns and a FairStock score of 27/100. The promoter holding of 45.70% is reassuring but does not justify valuation. As a patient investor, I would wait for a far lower price or clear evidence of sustainably higher margins before parking any capital here.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer