Record-Breaking Market Performance
On 25 Feb 2026, TVS Motor Company Ltd’s stock price touched an intraday high of ₹3,902, marking a 2.16% increase for the day and closing just 0.21% shy of its 52-week high of ₹3,908.95. This performance outpaced the broader Sensex, which rose by 0.69% on the same day, and also outperformed the automobile sector by 0.54%. The stock’s day change stood at a robust 2.67%, signalling strong investor confidence in the company’s current valuation.
TVS Motor is trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained upward momentum. This technical strength complements the company’s fundamental robustness, reinforcing the stock’s position at the forefront of the automobile industry.
Consistent Outperformance Over Time
The company’s stock has demonstrated remarkable resilience and growth over various time horizons. Over the past year, TVS Motor Company Ltd has delivered a stellar return of 66.88%, significantly outperforming the Sensex’s 10.98% gain. Year-to-date, the stock has appreciated by 5.43%, while the Sensex declined by 2.84%. Longer-term performance is even more impressive, with a three-year return of 254.75% compared to the Sensex’s 39.24%, a five-year return of 557.16% versus 62.22%, and a ten-year return of 1,365.47% against the Sensex’s 260.36%.
This consistent outperformance highlights the company’s ability to generate shareholder value over extended periods, supported by strong fundamentals and strategic execution.
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Strong Financial Metrics Underpinning Growth
TVS Motor Company Ltd’s financial performance has been marked by healthy growth and operational efficiency. The company reported its highest quarterly net sales at ₹14,755.52 crores, accompanied by an operating profit to interest ratio of 4.05 times, the highest recorded to date. Cash and cash equivalents stood at ₹4,725.07 crores for the half-year period, reflecting a strong liquidity position.
Net sales have grown at an annual rate of 24.75%, while operating profit has expanded at an even more impressive 37.08%. The company’s operating profit growth of 7.19% in the most recent quarter contributed to very positive results declared in December 2025. Notably, TVS Motor has reported positive results for nine consecutive quarters, underscoring its consistent financial discipline and market execution.
High Management Efficiency and Institutional Confidence
Management efficiency is reflected in the company’s return on capital employed (ROCE) of 19.71%, a figure that signals effective utilisation of capital to generate profits. This high ROCE is a key factor in the company’s strong valuation and sustained growth trajectory.
Institutional investors hold a significant 41.38% stake in TVS Motor Company Ltd, indicating strong confidence from entities with extensive analytical capabilities and resources. This institutional backing often correlates with a company’s fundamental strength and market credibility.
MarketsMojo rates TVS Motor Company Ltd with a Mojo Score of 78.0 and a Mojo Grade of Buy, upgraded from Hold on 6 Nov 2025. The company ranks among the top 1% of over 4,000 stocks analysed by MarketsMojo, positioned 12th among large caps and 50th across the entire market, reflecting its elite status in terms of quality and performance.
Valuation and Risk Considerations
Despite its strong performance, TVS Motor Company Ltd carries a relatively high average debt-to-equity ratio of 2.28 times, indicating a leveraged capital structure. The company’s enterprise value to capital employed ratio stands at 6.1, suggesting an expensive valuation relative to capital employed. However, the stock currently trades at a discount compared to its peers’ average historical valuations.
Profit growth over the past year has been substantial at 49%, though the price-to-earnings-to-growth (PEG) ratio is 1.3, indicating that the stock’s price growth is somewhat aligned with its earnings expansion. The company’s ROCE of 18.4% further supports its valuation, albeit at a premium level.
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Summary of TVS Motor Company Ltd’s Journey to the Peak
TVS Motor Company Ltd’s ascent to an all-time high is the culmination of years of strategic growth, operational excellence, and financial discipline. The company’s ability to consistently deliver positive quarterly results, coupled with strong sales and profit growth, has propelled it ahead of many peers in the automobile sector.
Its market capitalisation and stock performance reflect a well-managed enterprise that has successfully navigated competitive pressures and evolving market dynamics. The high institutional holding and upgraded Mojo Grade to Buy further validate the company’s standing as a leading player in its industry.
While the company carries a leveraged balance sheet, its strong cash position and efficient capital utilisation mitigate some concerns related to debt. The valuation metrics suggest that the stock is priced at a premium but remains attractive relative to historical peer valuations.
Overall, TVS Motor Company Ltd’s record-breaking stock price is a testament to its robust fundamentals and sustained growth trajectory within the Indian automobile sector.
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