TVS Srichakra Ltd (TVSSRICHAK) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

CEAT

JK Tyre & Indust

Apollo Tyres

MRF

TVS Srichakra

Goodyear India

Tolins Tyres

Balkrishna Inds

Indag Rubber

Modi Rubber

Emerald Tyre

Why is TVS Srichakra Ltd ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.90 times

Poor long term growth as Net Sales has grown by an annual rate of 14.57% and Operating profit at 12.44% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.90 times
The company has been able to generate a Return on Equity (avg) of 7.27% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.57% and Operating profit at 12.44% over the last 5 years

Flat results in Sep 25

PAT(9M) At Rs 27.42 cr has Grown at -41.67%
OPERATING CF(Y) Lowest at Rs 197.33 Cr
ROCE(HY) Lowest at 4.91%

With ROCE of 4.5, it has a Expensive valuation with a 2.2 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 21.54%, its profits have fallen by -61.3%

Majority shareholders : Non Institution

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TVS Srichakra should be less than 10%
Overall Portfolio exposure to Tyres & Rubber Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tyres & Rubber Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is TVS Srichakra for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

TVS Srichakra

22.04%

0.58

37.88%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.57%

EBIT Growth (5y)

12.44%

EBIT to Interest (avg)

3.40

Debt to EBITDA (avg)

2.93

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

1.68

Tax Ratio

39.03%

Dividend Payout Ratio

62.77%

Pledged Shares

Institutional Holding

5.95%

ROCE (avg)

8.06%

ROE (avg)

7.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

127

Industry P/E

Price to Book Value

3.03

EV to EBIT

48.94

EV to EBITDA

18.98

EV to Capital Employed

2.22

EV to Sales

1.27

PEG Ratio

Dividend Yield

0.37%

ROCE (Latest)

4.54%

ROE (Latest)

2.39%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

PAT(Q)

At Rs 12.65 cr has Grown at 100.7% (vs previous 4Q average

OPERATING PROFIT TO INTEREST(Q)

Highest at 5.30 times

DPR(Y)

Highest at 62.77%

NET SALES(Q)

Highest at Rs 926.49 cr

PBT LESS OI(Q)

Highest at Rs 17.84 cr.

-10What is not working for the Company

PAT(9M)

At Rs 27.42 cr has Grown at -41.67%

OPERATING CF(Y)

Lowest at Rs 197.33 Cr

ROCE(HY)

Lowest at 4.91%

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.22 times

Loading Valuation Snapshot...

Here's what is working for TVS Srichakra

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 17.84 cr has Grown at 139.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 7.46 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 12.65 cr has Grown at 100.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 6.30 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 5.30 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 926.49 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 17.84 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Dividend Payout Ratio (DPR) - Annually

Highest at 62.77%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for TVS Srichakra

Operating Cash Flow - Annually

Lowest at Rs 197.33 Cr

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 8.22 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 2.93 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income