At a Glance
TVS Srichakra Ltd (TVSS) is the TVS Group’s tyre-making arm, producing two-wheeler tyres for OEMs, aftermarket, and off-highway use. Despite a strong brand and market presence, the stock trades at a jaw-dropping P/E of 83.7, while ROE sits at just 2.35%—a combination that makes even hardcore investors sweat. Revenue remains steady, but profits have collapsed 76% in FY25, and the stock has fallen 33% in a year. Looks like the only thing inflated here is the valuation.
Introduction
TVS Srichakra is known for Eurogrip tyres and its association with big OEMs. It’s a household name in the 2W tyre segment. But somewhere between rubber and revenue, profits went flat. Margins shrunk, debt ballooned, and EPS crashed to ₹26.9 in FY25 (from ₹140 in FY24).
The company is still paying healthy dividends (42.6% payout), but that’s like serving dessert while the main course is missing. Investors must decide: is this a turnaround play or just a slow puncture rolling downhill?
Business Model (WTF Do They Even Do?)
- Products: 2/3-wheeler tyres, farm and industrial tyres, OHTs.
- Segments: OEM
