TVS Srichakra (TVSSRICHAK)
CyclicalFairStock Score: 28/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹4,478.1 |
| Market Cap | ₹3,428.9 Cr |
| P/E Ratio | 48.08 |
| ROCE | 5.36% |
| ROE | 5.99% |
| Dividend Yield | 0.44% |
| Profit Growth | 276.4% |
| Debt/Equity | 0.64 |
| Sales Growth | 19.9% |
| Promoter Holding | 45.7% |
| 52-Week Range | ₹2,871.5 — ₹5,758.8 |
| Sector | Auto Components |
| Book Value | ₹1,554.26 |
Strengths
- Piotroski F-Score of 7/9 indicates improving fundamentals and operational efficiency
- Sales growth of 14.17% shows healthy demand traction in the tyre segment
- Debt/Equity of 0.69 is moderate, providing some balance sheet stability
- Promoter holding of 45.70% aligns management interests with minority shareholders
Concerns
- P/E of 64.29 with ROE/ROCE of just 5.38%/5.36% signals severe overvaluation
- Latest quarter net margin is extremely thin at ~1.2% (₹11 Cr profit on ₹917 Cr sales)
- Profit growth of 743.96% is a low-base anomaly, not a sustainable trend (PEG 0.17 is misleading)
- Dividend yield of 0.43% offers negligible income support for a cyclical business
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer