Check Before You Invest : TVS Electronics Ltd

Snapshot

Q.1 Which industry/sub-sector does TVS Electronics Ltd belong to?

TVS Electronics Ltd belongs to the Consumer Durables sector, operating specifically within the IT - Hardware segment.

Q.2 Is TVS Electronics Ltd a good quality company?

TVS Electronics Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is TVS Electronics Ltd undervalued or overvalued?

TVS Electronics Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is TVS Electronics Ltd a good buy now?

TVS Electronics Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of TVS Electronics Ltd?

TVS Electronics Ltd revenue growth is 17.6% for FY-2025, which is above its 5-year CAGR of 10.72%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of TVS Electronics Ltd?

TVS Electronics Ltd Return on capital employed is -0.76% for FY-2025, which is below its 5-year historical median of 3.21%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of TVS Electronics Ltd?

TVS Electronics Ltd Return on Asset is -1.52%, which is below its 5-year historical median of 0.44%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of TVS Electronics Ltd?

TVS Electronics Ltd Return on equity is -3.95% for FY-2025, which is below its 5-year historical median of 0.95%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of TVS Electronics Ltd?

TVS Electronics Ltd Cash conversion cycle is 30 days, above its 5-year historical median of 14 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.73	1.66
ROE	-3.95	0.95
ROCE	-0.76	3.21
Cash Conversion Cycle	30 days	14 days

Q.6 Gross Profit margin of TVS Electronics Ltd?

TVS Electronics Ltd Gross profit margin which is the profit after deduction of direct costs, is 2% for FY-2025, which is below its 5-year median of 3.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of TVS Electronics Ltd?

TVS Electronics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.62% for FY-2025, which is below its 5-year median of 4.16% indicating decreasing margins.

Q.8 Net Profit Margin of TVS Electronics Ltd?

TVS Electronics Ltd Net Profit Margin is -0.88% for FY-2025, is below with its 5-year median of 0.34%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	2	3.9
Operating Profit Margin	2.62	4.16
Net Profit Margin	-0.88	0.34

Q.9 Debt to Equity ratio of TVS Electronics Ltd?

TVS Electronics Ltd Debt-to-Equity ratio is 0.34, which is lower with the industry average of 0.53, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of TVS Electronics Ltd?

TVS Electronics Ltd Debt to cash flow from operations is 5.56, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of TVS Electronics Ltd?

Promoters hold 59.77% of the TVS Electronics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of TVS Electronics Ltd vs industry peers?

TVS Electronics Ltd revenue CAGR is 10.72%, compared to the industry median CAGR of 12.66%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	17.6	12.7
Gross Profit Growth	-10	29.1
Operating Profit Growth	10	33.6
Net Profit Growth	0	34.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.73	0.71
ROE	-3.95	6.95
ROCE	-0.76	7.84
Cash Conversion Cycle (days)	30.08	70

Valuation & price assessment

Q.1 Stock return of TVS Electronics Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 16.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	16.1%	28.5%	6.7%	19%

Q.3 Valuation ratios of TVS Electronics Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	36.44	36.44
Price to Book	9.4	6.46	1.97
Price to Sales	1.91	1.72	2.97
EV to EBITDA	48.42	38.70	15.45

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