History of TVS Motors

Submitted By:-

Naveen Kumar S

(11M009)

History of TVS Motors

TVS Motor Company was incorporated in 1982. It is third largest two-wheeler manufacturer in

India and one among the top ten in the world. TVS Motor is the flagship company of the $4

billion TVS Group. The company manufactures a wide range of two wheelers such as mopeds,

scooters and motorcycles. It has four manufacturing facilities located at Hosur, Mysore,

Himachal Pradesh and Indonesia and a production capacity of 300 thousand units a year. In the

motorcycles segment company it has created brands like TVS Apache, TVS Star and TVS

Flame. In variomatic scooters segment TVS Motor manufactures brands like TVS Scooty Pep +

and TVS Scooty Teenz. It has created brands like TVS XL Super and TVS XL Heavy Duty in

mopeds segment.

 Milestones

In the year 1980 TVS Motor launched India’s first two-seater 50cc moped TVS 50.In 1984, the

two-wheeler major became the first Indian company to introduce 100cc Indo-Japanese

motorcycles. In 1994 it launched India’s first indigenous scooterette -- TVS Scooty, a 100cc

model.

  Competitors and position of TVS:-

RANK COMPANY SALES VOLUMES(Rs in mill)

1 BAJAJ AUTO 159981.20

2 HERO MOTO CORP 192450.30

3 TVS MOTORS 61794.80

4 MAHARASTRA SCOOTERS 61.96

5 SCOOTERS INDIA 1599.88

6 ATUL AUTO 2015.87

7 KINETIC ENGG 906.89

8 LM L 3450.58

9 MAJESTIC AUTO 1522.57

10 KINETIC MOTORS 4.56

Products of TVS Motors:-

PRODUCTS SALES QUANTITY SALES VALUE %STO

Motorcycles 832567.00 27488.80 40.95

Scooters 466206.00 13406.90 19.97

Mopeds 704557.00 12353.40 18.40

Components 0.00 5402.20 8.05

Three-Wheelers 39257.00 3143.50 4.68

CAPITAL STRUCTURE

To Year

Class Of Share

Authorized Capital

Issued Capital

Paid Up Shares (No’s)

Paid Up Face Value

Paid Up Capital

2011 Equity Share 50 47.51 475087114 1 47.51

2010 Equity Share 25 23.75 237543557 1 23.75

2009 Equity Share 25 23.75 237543557 1 23.75

2008 Equity Share 25 23.75 237543557 1 23.75

2007 Equity Share 25 23.75 237543557 1 23.75

2006 Equity Share 25 23.75 237543557 1 23.75

2005 Equity Share 25 23.75 237543557 1 23.75

2004 Equity Share 25 23.1 231000700 1 23.1

2003 Equity Share 25 23.1 23100070 10 23.1

2002 Equity Share 25 23.1 23100070 10 23.1

2001 Equity Share 25 23.1 23100070 10 23.1

2000 Equity Share 25 23.1 23100070 10 23.1

1999 Equity Share 25 23.1 23100000 10 23.1

1985 Equity Share 10 7.7 7700000 10 7.7

1984 Equity Share 10 1.76 1760000 10 1.76

RATIO ANALYSIS

  Mar ' 11 Mar ' 10

Per share ratios    

Adjusted EPS (Rs) 4.3 5.08

Dividend per share 1.1 1.2

Operating profit per share (Rs) 6.41 8.81

Free reserves per share (Rs) 19.9 33.89

Profitability ratios    

Operating margin (%) 4.92 4.79

Gross profit margin (%) 3.18 2.44

Net profit margin (%) 3.08 1.98

Return on long term funds (%) 19.08 9.85

Leverage ratios    

Long term debt / Equity 0.72 1.16

Total debt/equity 0.78 1.16

Owners fund as % of total source 55.99 46.3

Fixed assets turnover ratio 3.13 2.29

Liquidity ratios    

Current ratio 1.11 1.13

Current ratio (inc. st loans) 0.99 1.13

Quick ratio 0.59 0.74

Inventory turnover ratio 13.27 17.12

BETA CALCULATION OF TVS MOTORS

Date Open Close CL-OP TVS (X) SENSEX (Y)

2/1/2012 52.5 48.1 -4.4-

8.380952381 -0.107823343/1/2012 48.6 48.65 0.05 0.102880658 1.91041753

4/1/2012 49 48.1 -0.9-

1.836734694 -0.531392223

5/1/2012 48 47.9 -0.1-

0.208333333 -0.2264509

6/1/2012 47.65 46.9 -0.75-

1.573976915 0.4981290877/1/2012 47 47.5 0.5 1.063829787 -0.279992198

9/1/2012 47.6 46.95 -0.65-

1.365546218 -0.16098261310/1/2012 47.5 48.3 0.8 1.684210526 1.67797603811/1/2012 48.6 48.75 0.15 0.308641975 -0.286702868

12/1/2012 48.9 48.2 -0.7-

1.431492843 -0.49437898313/01/12 48.4 49.5 1.1 2.272727273 0.062250032

16/01/12 49.7 48.85 -0.85-

1.710261569 0.63791669417/01/12 49 49.35 0.35 0.714285714 1.199567079

18/01/12 49.3 49.15 -0.15-

0.304259635 -0.30874259719/01/12 49.7 49.95 0.25 0.503018109 0.42156720220/01/12 49.55 51.2 1.65 3.329969728 -0.03583157

23/01/12 52 50.95 -1.05-

2.019230769 0.50824922524/01/12 51.25 51.85 0.6 1.170731707 1.1248476825/01/12 51.8 53.5 1.7 3.281853282 0.04880235

27/01/12 54.15 53.6 -0.55-

1.015697138 0.189810904

30/01/12 53.55 50.9 -2.65-

4.948646125 -1.60310047131/01/12 51.95 52.4 0.45 0.866217517 1.3437206391/2/2012 52.4 52.55 0.15 0.286259542 0.703972842

2/2/2012 53 51.85 -1.15-

2.169811321 -0.0356690853/2/2012 52.35 51.55 -0.8 -1.52817574 0.921277785

6/2/2012 52.85 51.15 -1.7-

3.216650899 -0.195018462

7/2/2012 52 49.7 -2.3-

4.423076923 -1.0738340188/2/2012 49 49.75 0.75 1.530612245 0.4289435679/2/2012 48.2 52.05 3.85 7.987551867 1.03667312610/2/2012 52.05 50.55 -1.5 -2.88184438 -0.386696517

13/02/12 50.55 50.25 -0.3 -0.59347181 0.06271922214/02/12 50.35 51.8 1.45 2.879841112 0.45650869615/02/12 52.8 53.55 0.75 1.420454545 1.1228146216/02/12 53.75 53.75 0 0 -0.04988149

17/02/12 54.25 53.3 -0.95-

1.751152074 -0.22829929321/02/12 53.9 53.25 -0.65 -1.20593692 0.682265309

22/02/12 53.5 50.6 -2.9-

5.420560748 -1.869138661

23/02/12 50.75 50.45 -0.3-

0.591133005 -0.269482302

24/02/12 50.9 49.1 -1.8-

3.536345776 -0.859781592

27/02/12 49.65 46.85 -2.8-

5.639476334 -2.94539306728/02/12 47.45 48.1 0.65 1.369863014 1.060181441

29/02/12 49 47.2 -1.8-

3.673469388 -0.933318378

1/3/2012 47.9 47.3 -0.6-

1.252609603 -0.737526405

2/3/2012 46.5 46.3 -0.2-

0.430107527 -0.139230264

3/3/2012 46.8 46.3 -0.5-

1.068376068 -0.065048132

5/3/2012 46.55 44.35 -2.2-

4.726100967 -1.338472431

6/3/2012 45 43.5 -1.5-

3.333333333 -0.9422240997/3/2012 43.45 43.1 -0.35 -0.80552359 0.1070812599/3/2012 44 44.6 0.6 1.363636364 1.024020797

12/3/2012 45.3 44.4 -0.9-

1.986754967 -1.037750181

13/03/12 45 44.8 -0.2-

0.444444444 0.754458511

14/03/12 45.5 44.95 -0.55-

1.208791209 -0.465751827

15/03/12 45 43.5 -1.5-

3.333333333 -1.345102515

16/03/12 43.75 43.7 -0.05-

0.114285714 -1.079526823

19/03/12 43.95 42.7 -1.25-

2.844141069 -1.472209689

20/03/12 42.5 41.7 -0.8-

1.882352941 0.04211708521/03/12 42 42.35 0.35 0.833333333 1.737166756

22/03/12 42.7 41.55 -1.15-

2.693208431 -2.21533419123/03/12 41.85 41.7 -0.15 - 0.602744743

0.35842293926/03/12 41.7 39.7 -2 -4.79616307 -1.86913145

27/03/12 40.5 38.8 -1.7-

4.197530864 0.280258212

28/03/12 39 37.9 -1.1-

2.820512821 -0.654850045

29/03/12 37.2 37.15 -0.05-

0.134408602 0.11009486630/03/12 37.95 41 3.05 8.036890646 1.6754287012/4/2012 41.95 43.15 1.2 2.860548272 0.276477972

3/4/2012 43.95 42.3 -1.65-

3.754266212 0.120674484/4/2012 41.7 42.95 1.25 2.997601918 -0.383062747

9/4/2012 42.7 41.2 -1.5-

3.512880562 -1.065737727

10/4/2012 41.45 40.95 -0.5-

1.206272618 -0.089343344

11/4/2012 41 40.3 -0.7-

1.707317073 0.42882267612/4/2012 40.85 41.65 0.8 1.958384333 0.322685764

13/04/12 41.6 40.35 -1.25-

3.004807692 -0.80109977916/04/12 40.25 41.45 1.2 2.98136646 0.604650317

17/04/12 41.5 41.3 -0.2-

0.481927711 0.912564815

18/04/12 41.7 41.25 -0.45-

1.079136691 -0.314490642

19/04/12 41.5 41.15 -0.35-

0.843373494 0.4062436

20/04/12 41.25 40.65 -0.6-

1.454545455 -0.491875013

23/04/12 40.85 39.05 -1.8-

4.406364749 -1.447333834

24/04/12 39.1 38.8 -0.3-

0.767263427 0.30627085825/04/12 38.75 39.9 1.15 2.967741935 -0.43104599326/04/12 40 39.25 -0.75 -1.875 -0.351055377

27/04/12 39.6 38.25 -1.35-

3.409090909 -0.06497373328/04/12 38.35 39.05 0.7 1.825293351 0.31019849830/04/12 39 41 2 5.128205128 0.717047648

2/5/2012 42.05 41.5 -0.55-

1.307966706 -0.3973304833/5/2012 41.25 39.2 -2.05 -4.96969697 -0.698133428

4/5/2012 39 38.7 -0.3-

0.769230769 -1.381392227/5/2012 38.8 39.4 0.6 1.546391753 1.7584973688/5/2012 39.85 37.75 -2.1 - -2.184537332

5.269761606

9/5/2012 37.65 37.05 -0.6-

1.593625498 0.262648595                 Std.Dev 2.770563835 0.942102323      variance 7.676023966 0.887556787

      covariance 1.651457791  

      correlation 0.632704965  

      beta 1.860678455  

CALCULATION OF COST OF EQUITY

Ke = Rf + (Rm – Rf) β

GIVEN

Rf = 8.294% Rm = 17% β = 1.8606

Ke = 8.294 + (14 – 8.294) 1.8606

Ke = 8.294 + 10.616

Ke = 18.91%

SIMPLE MOVING AVERAGE

MACD

Interpretation:- As the MACD of 12 , 26 days is -2.66 and EMA is -2.24 of 9 days the divergence is 0.38 which states that EMA is greater than MACD so we can conclude that this is the right time to purchase the shares.

Relative Strength Index

Interpretation: - As we could see when RSI is near 70 bar slab TVS stock reaches a new high and when the RSI falls be-low the 50 slab the stock price of TVS decreases so, by this we can conclude that when the RSI reaches below 50 we can pur-chase the stock and when RSI crosses 70 slab it’s the time to sell the stock.