How TVS Motor Company Limited (NSE:TVSMOTOR) Could Add Value To Your Portfolio

In This Article:

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Attractive stocks have exceptional fundamentals. In the case of TVS Motor Company Limited (NSE:TVSMOTOR), there’s is a well-regarded dividend payer with a an impressive track record of performance and an optimistic future outlook. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on TVS Motor here.

Reasonable growth potential with proven track record and pays a dividend

Investors seeking high cash growth potential should consider TVSMOTOR, with forecasted operating cash flow growth of triple-digits in the upcoming year. This underlies the notable 24% return on equity over the next few years leading up to 2022. TVSMOTOR delivered a bottom-line expansion of 28% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did TVSMOTOR outperformed its past performance, its growth also surpassed the Auto industry expansion, which generated a 22% earnings growth. This is what investors like to see!

NSEI:TVSMOTOR Future Profit February 7th 19
NSEI:TVSMOTOR Future Profit February 7th 19

For those seeking income streams from their portfolio, TVSMOTOR is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 0.7%.

NSEI:TVSMOTOR Historical Dividend Yield February 7th 19
NSEI:TVSMOTOR Historical Dividend Yield February 7th 19

Next Steps:

For TVS Motor, there are three fundamental aspects you should further research:

  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Valuation: What is TVSMOTOR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TVSMOTOR is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TVSMOTOR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.