Buy TVS motors @ rs.287.00 // Niyati pandya // 3rd feb 2016

[niyati pandya]

TVS motors

TVS Motor Company is the third largest two-wheeler manufacturer in India and one among the top ten in the world, with annual revenue of more than Rs.10,098 Cr in 2014-15 (around USD 1.6 billion), and is the flagship company of the, USD 7.29 billion in 2013-14, TVS Group. The company has annual sales of 2.5 million units a year. TVS Motor Company is also the 2nd largest exporter in India with exports to over 60 Countries

TVS Motor Company Ltd (TVS Motor), member of the TVS group, is the largest company of the group in terms of size and turnover with more than 2.8 crore customers riding a TVS bike. 

The company was first two-wheeler manufacturer to win the coveted Deming Award in 2002. It was the first Indian company to deploy a catalytic converter in a 100 cc motorcycle and the first to indigenously produce a four stroke 150cc motorcycle. In 2006, the company’s TVS Apache became the first Indian motorcycle to consecutively win six prestigious awards in a row. In 2007, TVS became the first Indian automobile manufacturer to roll out as many as seven new products on a single day, a testimony to its manufacturing process. In 2012, TVS Motor Company was declared as ‘India’s most trusted Two Wheeler Brand’ by the Brand Equity Most Trusted Brand Survey, 2012 and in 2014 TVS Jupiter became the most awarded scooter in India, winning six ‘Scooter of the Year’ awards from leading publication houses in the country.

	Analysis:
1	The CAGR for 5 years is 14.52% this is significantly higher than the GDP 7.5%.
2	The Raw materials are constant for the past 5 years.
3	OPM (%) is also constant for the past 5 years.
4	On the capital based on 48 crores, they have generated reserves of 1,600 crores
5	Gross block has ↑ because of purchase of assets. Net block has↓ this is due to ↑ in depreciation.
6	↑ in depreciation may be due to change in depreciation method or increased in fixed assets
	ROI(OB) is 3.22%