TVS Holdings Ltd: Acquires 100% Stake in TVS Digital Ltd to Strengthen IT Services Portfolio
Company Overview
TVS Holdings Ltd was established in 1962 as a Sundaram Clayton Ltd in Chennai by Venu Shrinivasan. Today it is known as TVS Holdings. It is a largest manufacturer of auto components and distribution groups in India. It is a leading supplier of aluminium die castings to automotive and non-automotive sectors. It makes aluminium castings for two wheelers, heavy commercial vehicles, passenger cars, etc. The export revenue contributes 26% in the total revenue. It has about 27 subsidiaries and 3 associate companies. It holds approximately 50% of TVS Motor Company Ltd. which is engaged in 2/3 wheelers segment. It also holds TVS Credit Services Ltd a retail finance firm also providing finance to TVS Motors. It has also acquired 50% of stake in Sundaram Holding USA Inc. The company has 5 manufacturing plants four in Tamil Nadu and one in USA, and is planning to expand to meet the additional demand from market.
Shareholding Pattern as on September 2024
Key Stats
| Market Cap | ₹19020 Crore |
| Revenue | ₹42168 Crore |
| Profit | ₹952 Crore |
| ROCE | 14.98% |
| P/E | 19.8 |
Peer Comparison
| Amt in ₹ Cr | MCap | Sales | PAT | ROCE | Asset Turn. | EV/EBITDA | D/E | FCF |
| TVS Holdings | 19020 | 42168 | 952 | 14.98% | 0.96 | 6.76 | 8.24 | -1341 |
| Bajaj Holdings | 132513 | 1732 | 7407 | 13.07% | 0.03 | 17.3 | 0.00 | 1941 |
| Cholaman.Inv.&Fin. | 104535 | 22502 | 3851 | 10.41% | 0.45 | 15.58 | 7.38 | -36754 |
| Maha. Scooter | 11006 | 182 | 175 | 0.88% | 0.01 | 65.28 | 0.00 | 206 |
| Sundaram Fin. Hold | 6771 | 315 | 571 | 5.85% | 0.07 | 24.1 | 0.00 | 132 |
Financial Trends
| Amount in ₹ Cr | 2020 | 2021 | 2022 | 2023 | 2024 |
| Revenue | 19858 | 20299 | 25591 | 33662 | 40248 |
| Expenses | 17446 | 17911 | 22599 | 29356 | 34417 |
| EBITDA | 2412 | 2388 | 2992 | 4306 | 5830 |
| OPM | 12% | 12% | 12% | 13% | 14% |
| Interest | 910 | 929 | 985 | 1424 | 2043 |
| Net Profit | 627 | 592 | 824 | 1333 | 1782 |
| NPM | 3.2% | 2.9% | 3.2% | 4.0% | 4.4% |
| EPS | 166.89 | 160.24 | 218.31 | 321.16 | 396.23 |
Stock Price Analysis
The prices of stock before 2014 were in range of ₹300 per share which now rose to high of ₹15,000 level. From 2015-2022 was the consolidation phase and after breaking it the stock has ran about 4 time to now reaching its all-time high. The stock has now seen a minor setback in its prices and it is trading at ₹ 9500 per share level. The volatility is increased and so the volumes of share traded every day compared to past.
Latest Stock News (2 January 2025)
TVS Holdings Ltd acquired a 100% stake in TVS Digital Ltd (formerly TVS Housing Ltd) from TVS Motor Company Ltd for ₹4.14 crore. This acquisition, a related party transaction conducted at arm’s length, makes TVS Digital a wholly-owned subsidiary. Headquartered in Chennai, TVS Digital operates in IT services and reported a turnover of ₹3.85 crore with a net profit of ₹0.27 crore in FY 2023-24. The move aligns with TVS Holdings’ strategy to consolidate non-automotive investments. Shares of TVS Holdings closed at ₹14,205, down 0.35% on the NSE.