Exciting Partnership Boosts Indian Motorsport Scene with PETRONAS Lubricants for 3 Years

Over the past three years, the company has delivered a remarkable return of 288.31 per cent, classifying it as a multibagger stock.

TVS Motor Company has announced an extended partnership with PETRONAS Lubricants International (PLI) aimed at enhancing Indian motorsport excellence. PLI will continue as the title sponsor for TVS Racing, India's first factory racing team, for another three years. This partnership will support TVS Racing's participation in major national championships such as the Indian National Supercross Championship, Indian National Rally Championship, and Indian National Motorcycle Racing Championship. The collaboration also includes PLI supplying premium semi and full synthetic oils under the TVS TRU4 brand, reinforcing its foothold in the high-performance lubricants market in India.

TVS Racing has been a dominant force in Indian motorsports, boasting over 80 per cent win rates across various racing formats. This long-standing collaboration with PLI highlights a shared commitment to pushing the boundaries of motorsport performance and innovation. The partnership aims to integrate race-derived technology into TVS's Apache series, enhancing the performance of their motorcycles. Both companies express excitement about continuing their journey together, with a focus on setting new benchmarks in two-wheeler racing.

The partnership also aligns with PLI’s broader energy ambitions in India, leveraging its motorsports legacy to further strengthen its presence in the dynamic two-wheeler market. The collaboration is set to inspire both riders and motorsports enthusiasts alike.

TVS Motor Company, listed under BSE code 532343 and NSE code TVSMOTOR, is a globally recognized manufacturer of two and three-wheelers. With a market capitalisation of Rs 1,07,293.67 crores, TVS Motor has a current stock price of Rs 2,272.8. Over the past three years, the company has delivered a remarkable return of 288.31 per cent, classifying it as a multibagger stock. The stock's 52-week high and low are Rs 2,958.15 and Rs 1,873.05, respectively. TVS Motor continues to innovate in the field of sustainable mobility, serving customers in over 80 countries. The company has been maintaining a healthy dividend payout of 21.3 per cent.

In the Quarterly Results of Dec-24, revenue stood at Rs 11,134.63 crore, reflecting a YoY growth of 10.09 per cent but a QoQ decline of 1.48 per cent from Rs 11,301.68 crore in Sep-24. Net profit for Dec-24 was Rs 566.03 crore, showing a YoY growth of 18.23 per cent and a QoQ increase of 0.99 per cent from Rs 560.49 crore in Sep-24. The net profit margin for Dec-24 was 5.08 per cent, compared to 4.96 per cent in Sep-24 and 4.73 per cent in Dec-23.

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For FY24, revenue reached Rs 39,144.74 crore, registering a growth of 22.43 per cent from Rs 31,973.99 crore in FY23. Net profit for FY24 was Rs 1,974.38 crore, reflecting a growth of 42.56 per cent from Rs 1,672.72 crore in FY23. The net profit margin improved to 4.27 per cent in FY24 from 3.67 per cent in FY23.

As of December 2024, the shareholding pattern stands as follows: Promoters hold 50.27 per cent, FIIs hold 21.20 per cent, DIIs hold 19.99 per cent, the public holds 8.45 per cent, and others hold 0.07 per cent. Compared to the previous quarter, FIIs' holding decreased from 22.33 per cent to 21.20 per cent, while DIIs' holding increased from 19.02 per cent to 19.99 per cent. Other categories remained largely unchanged.

With a PE ratio of 54.7x, the company trades at a premium compared to the industry PE of 42.7x. The company has ROCE of 14.7 per cent and ROE of 26.6 per cent.  

Investors must keep this Large-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.