TVS Srichakra Valuation Shift Signals New Price Attractiveness Dynamics

Nov 19 2025 08:00 AM IST

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TVS Srichakra, a key player in the Tyres & Rubber Products sector, has experienced a notable adjustment in its valuation parameters, reflecting a shift in price attractiveness. The company's price-to-earnings (P/E) ratio currently stands at 130.14, positioning it in the 'expensive' category relative to its historical and peer averages. This contrasts with competitors such as Apollo Tyres and CEAT, whose P/E ratios hover around 29.8 and 30.0 respectively, categorised as 'attractive'.

Alongside the P/E ratio, the price-to-book value (P/BV) for TVS Srichakra is recorded at 3.11, which is above typical sector averages, indicating a premium valuation on the company’s net assets. The enterprise value to EBITDA (EV/EBITDA) ratio is 19.35, which is higher than peers like Apollo Tyres (10.11) and JK Tyre & Industries (10.49), suggesting a relatively elevated valuation on operating earnings. These valuation metrics collectively signal a revision in the evaluation of TVS Srichakra’s price attractiveness, moving from fair to expensive territory.

TVS Srichakra’s return profile over various periods highlights a strong performance relative to the Sensex benchmark. The stock has delivered a 1-year return of 31.54%, significantly outpacing the Sensex’s 9.48% over the same timeframe. Year-to-date returns stand at 35.00%, compared to the Sensex’s 8.36%. Over a five-year horizon, the stock’s return of 200.66% notably exceeds the Sensex’s 91.65%, underscoring the company’s robust growth trajectory despite the valuation premium.

Financial efficiency metrics provide additional context to the valuation. The latest return on capital employed (ROCE) is 4.54%, while return on equity (ROE) is 2.39%, both figures that are modest within the sector. Dividend yield remains low at 0.36%, which may influence investor sentiment regarding income generation from the stock. Enterprise value to capital employed (EV/CE) and enterprise value to sales (EV/Sales) ratios are 2.26 and 1.29 respectively, reflecting the market’s pricing of the company’s asset base and revenue streams.

Market activity on 19 Nov 2025 shows TVS Srichakra’s share price closing at ₹4,683.00, up 3.80% from the previous close of ₹4,511.75. The stock traded within a range of ₹4,460.00 to ₹4,719.00 during the day, touching its 52-week high of ₹4,719.00. This price movement reflects investor response to the valuation adjustment and ongoing market dynamics within the Tyres & Rubber Products sector.

Comparatively, peers such as Goodyear India are classified as 'very expensive' with a P/E ratio of 50.78 and an EV/EBITDA of 20.36, indicating that TVS Srichakra’s valuation is at the higher end of the spectrum within its industry. This context is crucial for investors analysing price attractiveness and relative value in the sector.

In summary, the valuation parameter changes for TVS Srichakra highlight a shift towards a more expensive pricing framework, supported by strong historical returns but tempered by moderate profitability ratios. Investors should consider these factors alongside sector benchmarks and market conditions when analysing the stock’s price attractiveness.

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