auto
TVS Motor Company
TVSMOTOR · Nifty 50
₹3,448.7
Price 2026-06-17
At a Glance
Fundamental
55/100
ADEQUATE
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
TVS Motor Company scores 55/100 on fundamentals (adequate). TVS Motor Company: BROAD EXPANSION regime.
Fundamental Score: 55/100 · ADEQUATE · 1 signals detected
DuPont Analysis
ROE 30.0% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 30.02% is strong leverage-driven and stable. Net margin of 5.4% × asset turnover of 0.95x × leverage of 5.9x. High leverage amplifies returns but increases risk.
What This Means
Net margin of 5.4% means the company keeps ₹5.4 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.95x means the company efficiently uses its assets to generate revenue. Leverage of 5.9x means the company uses significant debt. Higher leverage amplifies returns but also risk.
Margin Structure
Gross
38.1%
Operating
12.7%
Net
5.4%
Gross margin 38.1% → operating margin 12.7% → net margin 5.4%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.7x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
ADEQUATEInterest covered 3.1x — adequate buffer. Debt is manageable. Debt/EBITDA at 4.1x is high — monitor leverage.
Free Cash Flow
MODERATEFCF margin negative at -2.6% — spending more than earning. Check capex cycle.
Peer Comparison
TVS Motor Company is compared against 10 peers in the auto sector.
Key Watchpoints
Breaks above ₹3621 (+5%)
Trend reversal confirmation
Breaks below ₹3276 (-5%)
Further downside risk
Auto sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Working capital is consuming significant cash. Operational efficiency declining.
Elevated risk score. Review audit, board, and shareholder rights metrics.
Profits are from core operations, not one-offs. High quality.
Collection cycle changing. Collection improving — positive for cash flow.
⚠️ 1 critical + 3 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes