1. 📌 At a Glance
TVS Holdings Ltd (formerly Sundaram Clayton) is the holding company behind TVS Motors, die-casting operations, and now, Home Credit India. With ₹45,000+ Cr in consolidated revenue, ₹2,400 Cr net profit, and 30% ROE, it’s what happens when Chennai’s most disciplined conglomerate decides to do finance, manufacturing, and investing — all under one cap.
2. 🎣 Hook: “A ₹11K Share That’s More Than Just Motorcycle Metal”
TVS Holdings isn’t just “auto ancillaries.” It’s:
- 🛠️ One of India’s largest aluminum die-casting manufacturers
- 🏦 NBFC via TVS Credit + now owning 81% of Home Credit India
- 🧱 Former real estate play (TVS Emerald, now exited)
- 💰 Owner of a stake in TVS Motors – India’s 2W legend
Basically, it’s Tata Sons Lite — minus the salt, plus the speed.
3. 🏗️ WTF Do They Even Do? (Business Model)
🎯 Core Segments:
- Auto Component Manufacturing
- Aluminum pressure/gravity die-castings
- Supplies to TVS Motor, global OEMs
- Business from Sundaram Clayton legacy
- NBFC / Lending
- TVS Credit: ₹10,000+ Cr AUM, 2.5 crore+ customers
- Now added Home Credit India (81% stake)
- Investments
- Stake in TVS Motors + other group cos
📍 Revenue Mix (FY25):
- Manufacturing ~25%
- Lending/Finance ~75%+
This is now a Finance-led conglomerate with auto roots.
4. 📊 Financials: Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 20,299 | 25,591 | 33,662 | 40,248 | 44,993 |
| EBITDA (₹ Cr) | 2,388 | 2,992 | 4,306 | 5,830 | 6,844 |
| Net Profit (₹ Cr) | 592 | 824 | 1,333 | 1,782 | 2,409 |
| EPS (₹) | 160 | 218 | 321 | 396 | 576 |
| ROE (%) | 16% | 18% | 22% | 30% | 31% |
| OPM (%) | 12% | 12% | 13% | 14% | 15% |
📈 5-Year CAGR:
- Sales: 18%
- PAT: 26%
- EPS: 28%
5. 💸 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹10,967
- P/E: 19.3x
- P/B: 4.73x
- EV/EBITDA: ~12x (est.)
🧠 EduVal™ Fair Value
Assuming FY26E EPS = ₹640 and assigning 18–22x PE:
➡️ FV Range = ₹11,500 – ₹13,500
✔️ Stock is fairly valued at current levels, with upside if lending biz scales.
6. 🔥 What’s Cooking – News, Triggers, Drama
🔥 Recent Moves:
- 🏦 Acquired Home Credit India (81.04% stake, ₹121 Cr infusion)
- 🛑 Exited Real Estate (TVS Emerald) — simplification move
- 💰 Debt ratings upgraded to AA+/Stable
- 🧱 Radial IT Park acquisition + disinvestment = capital recycling
- 🧾 Postal ballots to expand borrowing capacity = NBFC gearing up
💥 Big bet: TVS Credit + Home Credit = ₹25,000 Cr lending platform under one umbrella
7. 💣 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Net Worth | ₹4,687 Cr |
| Debt | ₹32,488 Cr (mostly in NBFC arms) |
| Assets | ₹54,181 Cr |
| Fixed Assets | ₹8,334 Cr |
| Investments | ₹1,320 Cr |
| Gearing (gross) | ~6.9x 😬 (but mostly NBFC) |
🧠 Important: NBFC leverage is expected; TVS Credit + Home Credit are regulated, profitable lending platforms.
8. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY23 | ₹-4,111 | ₹-1,439 | ₹5,979 | ₹429 |
| FY24 | ₹-867 | ₹1,533 | ₹275 | ₹941 |
| FY25 | ₹3,535 | ₹-3,227 | ₹1,209 | ₹1,516 |
🧠 Volatility is due to:
- Lending disbursements
- Acquisition/divestments
- High movement in borrowing lines
9. 📈 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 15.3% |
| ROE | 30.6% 🔥 |
| OPM | 15% |
| Interest Coverage | 3.0x (Est. NBFC adj.) |
| Dividend Payout | 16% |
| Dividend Yield | 0.86% |
| Debt/Equity | High – but NBFC-structured |
🧠 30% ROE in a holding structure = rare breed.
10. 📃 P&L Breakdown – Show Me the Money
- FY25 Sales: ₹44,993 Cr
- EBITDA: ₹6,844 Cr
- PAT: ₹2,409 Cr
- EPS: ₹576
- Profit from Lending = >55% of bottom line
🎯 Die-casting business is profitable, but finance is the future cash cow.
11. 🧢 Peer Comparison – Who Else Is in the Game?
| Company | ROE | P/E | Remarks |
|---|---|---|---|
| TVS Holdings | 31% | 19.3x | Finance + Auto + Holding play |
| Chola Financial | 19% | 18x | Pure play NBFC |
| Aditya Birla Cap | 12% | 22x | Financial Conglomerate |
| JSW Holdings | 0.6% | 126x | Passive holding only |
| Mah. Scooters | 0.5% | 96x | No operating biz |
🧠 TVS Holdings is probably the most balanced hold-co in India today.
12. 🧬 Misc – Shareholding, Promoters, Governance
- Promoters: 74.45% (TVS Group)
- FIIs: 2.69% (rising steadily)
- DIIs: 10.28%
- Public: 12.55%
- No pledging
- ~34,600 shareholders and climbing
📢 Clean group, clean books, clean execution.
13. ⚖️ EduInvesting Verdict™
📢 “If Bajaj Finance met Sundaram Fasteners and started investing — you’d get TVS Holdings.”
✅ Pros:
- 26% 5Y PAT CAGR
- 30%+ ROE with NBFC scale coming
- High EBITDA base + clean promoter group
- Valuation is not crazy
🚫 Cons:
- High debt on paper (because of lending ops)
- Still trades like a “boring hold-co”
- Low dividend for now
📊 FV Range: ₹11,500 – ₹13,500
(Assuming 18–22x FY26E EPS of ₹640)
✍️ Written by Prashant | 📅 7 July 2025
Tags: TVS Holdings, TVSHLTD, TVS Credit, Home Credit India, Auto Ancillaries, NBFC Stocks, Holding Companies India, Sundaram Clayton, Venu Srinivasan
