1) At a Glance
TVS Srichakra (a.k.a. TVS Eurogrip’s tyre factory with serious passport stamps) is sitting at ₹4,240 with a market cap of ₹3,248 Cr. In the last 3 months the stock is down -7.68%, which is the market’s polite way of saying, “Nice quarter… but calm down.” In the last 1 year it’s up 53.8%, which is the market’s not-so-polite way of saying, “We like tyres again.”
Valuation-wise, it’s trading at a Stock P/E of 69.3 and P/B of 2.79, while profitability metrics are… let’s say “in training mode”: ROCE 5.36%, ROE 2.35%. The company does have scale with Sales (TTM) ₹3,481 Cr, but PAT (TTM) is ₹46.9 Cr — which means margins are thin enough to be used as a puncture patch.
Latest quarter (Dec 2025) looks much better than last year’s same quarter because last year had a loss, but the bigger question is: is this a turnaround… or just a one-quarter tyre rotation?
2) Introduction
Tyres are a beautiful business on paper. Everybody needs them, nobody writes poems about them, and yet they decide whether your bike stops in time or you become a motivational quote on Instagram. TVS Srichakra sits in this “high utility, high competition” space — making 2W tyres for OEMs and replacement markets, and also doing OHT (Off-Highway Tyres) where margins can be better if execution is tight and raw material costs don’t behave like crypto.
The company belongs to the TVS group, has two plants (Madurai, Tamil Nadu and Rudrapur, Uttarakhand), and exports to 86+ countries. It also runs a wide domestic network: 600 distributors serving 50,000+ retailers across 640 districts. Basically, if you’ve been anywhere in India, there’s a decent chance a TVS Eurogrip tyre has been closer to you than your own savings goals.
But here’s the plot twist: despite scale and brand, the company’s returns are currently modest (ROCE 5.36%). That means the business is working hard… but shareholders aren’t getting the “gym transformation photo” yet.
So let’s open the books and see: Is this a steady compounder in the making, or a valuation that got carried away after a few good laps? And yes — we’ll do it with numbers, not vibes.
3) Business Model – WTF Do They Even Do?
TVS Srichakra makes tyres across categories: 2/3-wheeler, industrial pneumatic, farm & implement, skid-steer, multi-purpose, and more. In plain English: they sell tyres to (1) vehicle makers, and (2) the massive replacement market where people buy tyres after the road has “educated” the old ones.
Two key demand engines
- OEM segment: supplies to big names like Bajaj Auto, Hero MotoCorp, Honda, Suzuki, TVS Motor, Yamaha, etc. Top five customers contribute 40–50% of revenues (FY21–FY23) — diversified, but not “nobody can hurt us” diversified.
- Aftermarket segment: contributes meaningfully; for Q1 FY24, aftermarket contributed 37% of revenues. This segment often has better pricing power if the brand is trusted.
Geography
In Q1 FY24, revenue split was: Domestic 84%, Exports 16%. Exports help, but domestic is still the boss.
R&D angle
There’s a design centre in Milan supporting the Madurai R&D setup. That’s basically “Italian styling, Indian scaling.” If tyres had fashion weeks, this would matter even more.
Capex strategy (big deal)
Over FY22–FY26
