TVS Motor is another multi-bagger stock which has helped people in increasing their wealth. This stock has given 372% returns in five years, 107% returns in one year and 55% returns in six months. Even after giving so well returns this stock is still the favourite of many financial institutions and experts. The good thing for TVS Motors is that its Revenue, net income, diluted EPS and Net profit margins are positive. However, it slightly missed revenue in the December quarters. Many big groups like the ICICI group, SBI group and Axis group have holdings in the company. TVS motors have more than 50% holding of the promoters. Mutual funds have decreased holding slightly in the company but a number of MF schemes invested in this stock have increased while FIIs have increased their holding in this stock.
All these things put this stock in the category of moderate risk. The P/E and P/B of the TVS motor are high compared to its peers. The free Cash flow of the company is negative. The promoters of the company have decreased their holding by 7.13% in the recent past. This stock is trading at 17 times its book value and working capital days are increasing. These things make this stock somewhat risky if things go bad in future. So in my advice, we can avoid this stock till we see a major correction in it. Stock may see more upward movement because of the positive trend in making on the chart but it increases the risk factor too.
Current Price - 2298
Future Plan - Avoid / Or buy for short term only
Chart Trend - Positive
Risk - Very High
Stop Loss - 2100
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