Table of Contents
Company Overview of TVS Motor Company Ltd
TVS Motor Company Ltd, a flagship company of the TVS Group, is one of India’s leading two- and three-wheeler manufacturers. Headquartered in Chennai, it is renowned for its innovation, quality and customer-centric approach. The company produces a wide range of vehicles, including motorcycles, scooters and mopeds, catering to diverse customer needs.
VS has a significant global presence, exporting to over 60 countries. Known for pioneering eco-friendly technologies, it emphasizes sustainability and technological advancement. TVS Motor’s strong commitment to research and development has earned it several accolades, making it a trusted brand in the competitive automotive market.
Company Overview of Hero Motocorpses Limited
Hero MotoCorp Limited is involved in the development, production, marketing, sales and distribution of two-wheelers and related components. The company’s range of products includes motorcycles, scooters and parts. Among its motorcycle offerings are models such as XTREME 200S, XPULSE 200T and more.
Scooter options include Destini 125 XTEC, Maestro Edge 110 and Pleasure+ XTEC. Additionally, the company offers a variety of accessories like helmets, seat covers and tank pads. Hero MotoCorp operates eight manufacturing facilities, with six located in India and one in Colombia and Bangladesh each.
The Stock performance of TVS Motor
The table below displays TVS Motor Company Ltd.’s monthly stock performance for the past year.
| Month | Return (%) |
| Jan-2024 | -1.51 |
| Feb-2024 | 6.06 |
| Mar-2024 | 0.56 |
| Apr-2024 | -5.24 |
| May-2024 | 2.9 |
| Jun-2024 | 5.83 |
| Jul-2024 | 7.03 |
| Aug-2024 | 11.11 |
| Sep-2024 | -0.69 |
| Oct-2024 | -12.72 |
| Nov-2024 | -3.59 |
| Dec-2024 | -3.6 |
The Stock performance of Hero Motocorp
The table below displays the month-by-month stock performance of Hero MotoCorp Ltd for the past year.
| Month | Return (%) |
| Jan-2024 | 11.64 |
| Feb-2024 | -4.22 |
| Mar-2024 | 5.88 |
| Apr-2024 | -4.16 |
| May-2024 | 10.69 |
| Jun-2024 | 5.67 |
| Jul-2024 | -1.9 |
| Aug-2024 | -0.58 |
| Sep-2024 | 3.21 |
| Oct-2024 | -12.65 |
| Nov-2024 | -5.52 |
| Dec-2024 | -12.1 |
Fundamental Analysis of TVS Motor
TVS Motor Company Ltd is a prominent Indian manufacturer of motorcycles, scooters and three-wheelers. Founded in 1978 as a part of the larger TVS Group, the company has established a strong reputation for quality and innovation in the automotive sector. With a diverse product portfolio, TVS caters to a wide range of customer needs, from performance-oriented bikes to fuel-efficient scooters. The company is known for its commitment to sustainability and technological advancement.
TVS Motor Company Ltd’s stock is trading at ₹2,368.50, with a market capitalization of ₹1,12,441.25 crore. It offers a 0.34% dividend yield and shows robust growth with a 5-year CAGR of 38.28%, though it’s currently 24.89% below its 52-week high.
- Close Price ( ₹ ): 2368.50
- Market Cap ( Cr ): 112441.25
- Dividend Yield %: 0.34
- Book Value (₹): 7511.11
- 1Y Return %: 16.57
- 6M Return %: 0.59
- 1M Return %: -4.22
- 5Y CAGR %: 38.28
- % Away From 52W High: 24.89
- 5Y Avg Net Profit Margin %: 3.58
Fundamental Analysis of Hero Motocorp
Heromoto Corp, commonly known as Hero MotoCorp, is a leading motorcycle and scooter manufacturer based in India. Established in 1984, the company has built a strong reputation for producing high-quality two-wheelers that cater to diverse customer needs. With a commitment to innovation and sustainability, Hero MotoCorp has continually invested in research and development to enhance its product offerings.
The stock of this company trades at ₹4,160.60, with a market capitalization of ₹83,211.80 crore and a strong 3.36% dividend yield. Despite a 5-year CAGR of 11.24%, it’s 50.13% below its 52-week high, reflecting recent performance challenges.
- Close Price ( ₹ ): 4160.60
- Market Cap ( Cr ): 83211.80
- Dividend Yield %: 3.36
- Book Value (₹): 17834.57
- 1Y Return %: 1.02
- 6M Return %: -25.74
- 1M Return %: -11.27
- 5Y CAGR %: 11.24
- % Away From 52W High: 50.13
- 5Y Avg Net Profit Margin %: 9.31
Financial Comparison of TVS Motor and Hero Motocorp
The table below shows a financial comparison of TVS Motor Company Ltd and Hero MotoCorp Ltd.
| Stock | TVS Motor | Hero Motocorp | ||||
| Financial type | FY 2023 | FY 2024 | TTM | FY 2023 | FY 2024 | TTM |
| Total Revenue (₹ Cr) | 32111.99 | 39250.56 | 41906.38 | 34730.5 | 38643.16 | 41026.92 |
| EBITDA (₹ Cr) | 4162.78 | 5605.76 | 6062.65 | 4665.89 | 5923.93 | 6489.49 |
| PBIT (₹ Cr) | 3303.92 | 4630.64 | 5045.73 | 3968.5 | 5166.57 | 5687.42 |
| PBT (₹ Cr) | 1936.03 | 2702.92 | 3026.67 | 3863.62 | 5090.2 | 5619.87 |
| Net Income (₹ Cr) | 1328.67 | 1686.37 | 1887.10 | 2809.96 | 3744.83 | 4138.02 |
| EPS (₹) | 27.97 | 35.5 | 39.72 | 140.63 | 187.35 | 206.98 |
| DPS (₹) | 5.0 | 8.0 | 8.00 | 100.0 | 140.0 | 140.00 |
| Payout ratio (%) | 0.18 | 0.23 | 0.20 | 0.71 | 0.75 | 0.68 |
Points to be noted:
- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
- PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
- PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
- Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
- EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
- DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
- Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.
Dividend of TVS Motor and Hero Motocorpses Limited
The table below shows a dividend paid by the company.
| Hero Motocorp Ltd | TVS Motor Company Ltd | ||||||
| Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) | Announcement Date | Ex-Dividend Date | Dividend Type | Dividend (Rs) |
| 8 May, 2024 | 1 August, 2024 | Final | 40 | 27 Feb, 2024 | 19 March, 2024 | Interim | 8 |
| 9 Feb, 2024 | 21 Feb, 2024 | Interim | 75 | 19 Jan, 2023 | 2 February, 2023 | Interim | 5 |
| 10 Feb, 2024 | 21 Feb, 2024 | Special | 25 | 8 Mar, 2022 | 25 March, 2022 | Interim | 3.75 |
| 4 May, 2023 | 27 Jul, 2023 | Final | 35 | 24 Mar, 2021 | 30 March, 2021 | Interim | 1.4 |
| 7 Feb, 2023 | 17 February, 2023 | Interim | 65 | 18 Jan, 2021 | 4 February, 2021 | Interim | 2.1 |
| 4 May, 2022 | 27 Jul, 2022 | Final | 35 | 25 Feb, 2020 | 17 March, 2020 | Interim | 1.4 |
| 10 Feb, 2022 | 21 February 2022 | Interim | 60 | 17 Jan, 2020 | 11 February, 2020 | Interim | 2.1 |
| 6 May, 2021 | 22 Jul, 2021 | Final | 25 | 5 Mar, 2019 | 18 March, 2019 | Interim | 1.4 |
| 7 May, 2021 | 22 Jul, 2021 | Special | 10 | 16 Oct, 2018 | 30 October, 2018 | Interim | 2.1 |
| 5 Feb, 2021 | 15 February, 2021 | Interim | 65 | 12 Feb, 2018 | 6 March, 2018 | Interim | 1.3 |
Advantages and Disadvantages of Investing in TVS Motor Company Ltd
TVS Motor Company Ltd
The primary advantage of TVS Motor Company Ltd is its reputation for quality and innovation in the automotive sector, supported by a diverse product portfolio that caters to various customer segments across domestic and international markets.
- Strong Brand Presence: TVS has established itself as a trusted and well-recognized brand in the two- and three-wheeler segments, gaining customer loyalty through reliability, innovative designs and quality manufacturing standards.
- Wide Product Range: The company offers a diverse range of vehicles, including motorcycles, scooters and mopeds, which allows it to cater to different customer preferences and expand its market reach.
- Global Footprint: With exports to over 60 countries, TVS Motor enjoys a significant global presence, leveraging international markets for consistent revenue growth and brand recognition.
- Technological Innovation: TVS focuses heavily on research and development, introducing eco-friendly and technologically advanced vehicles, staying ahead of market trends and enhancing customer experiences.
- Sustainability Initiatives: The company emphasizes green manufacturing processes and eco-friendly practices, aligning its operations with global sustainability goals, which strengthens its brand image among environmentally-conscious consumers.
The main disadvantage of TVS Motor Company Ltd is its reliance on the two-wheeler segment, making the company susceptible to demand fluctuations, competitive pressures and external factors like rising fuel prices and economic slowdowns.
- High Competition: The two-wheeler market is highly competitive, with numerous domestic and international players, creating pricing pressures and challenges in maintaining market share.
- Dependency on Domestic Market: A significant portion of revenue comes from the Indian market, exposing TVS to risks from regional economic and regulatory changes.
- Limited Presence in Premium Segments: TVS has a relatively weaker foothold in high-margin premium bike segments, which impacts overall profitability and brand diversification.
- Vulnerability to Cost Fluctuations: Rising raw material costs and supply chain disruptions can increase production expenses, affecting margins and pricing strategies.
- Technology Transition Challenges: The shift towards electric vehicles demands significant investment in R&D and infrastructure, posing challenges in adapting quickly to changing market demands and staying competitive.
Advantages and Disadvantages of Investing in Hero Motocorp
Hero MotoCorp Ltd
The primary advantage of Hero MotoCorp Ltd lies in its position as the world’s largest two-wheeler manufacturer, supported by a strong brand presence, extensive distribution network and a diverse range of affordable and fuel-efficient motorcycles.
- Market Leadership: Hero MotoCorp’s dominance in the two-wheeler segment reflects its strong market share and customer trust, particularly in the commuter motorcycle category, which drives consistent demand and revenue.
- Extensive Distribution Network: With a vast dealership network across urban and rural areas, Hero ensures easy availability of its products, maintaining its leadership in both volume and reach.
- Fuel-Efficient Offerings: Hero’s focus on economical and fuel-efficient bikes attracts budget-conscious consumers, especially in price-sensitive markets, strengthening its core customer base.
- Robust After-Sales Service: A widespread service network enhances customer satisfaction, making Hero’s products reliable and encouraging long-term brand loyalty among its users.
- Focus on Innovation: Hero’s investment in research and development supports the introduction of eco-friendly and technologically advanced products, aligning with market trends and maintaining its competitive edge in the evolving automotive industry.
The main disadvantage of Hero MotoCorp Ltd is its heavy reliance on the commuter motorcycle segment, which limits its ability to capture high-margin premium markets and exposes it to fluctuating demand in price-sensitive customer segments.
- Limited Premium Segment Presence: Hero’s weaker positioning in the premium motorcycle market restricts its ability to capture higher profit margins and diversify its revenue streams.
- Intense Market Competition: The two-wheeler industry faces aggressive competition from domestic and international brands, impacting Hero’s market share and pricing flexibility.
- Dependency on Domestic Market: A significant portion of Hero’s revenue comes from India, making it vulnerable to regional economic downturns, regulatory changes and demand fluctuations.
- Slower Electric Transition: Hero lags in the electric vehicle segment compared to competitors, potentially missing growth opportunities in the rapidly expanding EV market.
- High-Cost Sensitivity: Rising raw material costs and dependency on price-sensitive consumers make Hero susceptible to margin pressures, especially during economic uncertainties or inflationary periods.
How to Invest in Hero Motocorp Ltd and TVS Motor Company Ltd?
To invest in Hero MotoCorp Ltd and TVS Motor Company Ltd, you need a Demat and trading account with a reliable broker, enabling easy access to stock exchanges for seamless buying, selling and portfolio management.
- Select a Broker: Choose a trusted broker like Alice Blue, offering competitive brokerage fees, robust platforms and tools to make informed investment decisions while simplifying the trading experience.
- Open a Demat Account: Register for a Demat account to securely store shares and enable smooth transactions, ensuring compliance with regulatory standards and protecting your investments.
- Research Companies: Analyze the financial performance, market position and growth potential of Hero MotoCorp Ltd and TVS Motor Company Ltd to make informed investment decisions that align with your risk tolerance.
- Execute Trades: Use the trading platform to place buy or sell orders, considering market trends and personal strategies, to optimize your investment returns effectively.
- Monitor and Adjust Portfolio: Regularly track the performance of your investments using Alice Blue’s portfolio management tools and adjust your holdings to align with evolving financial goals and market dynamics.
TVS Motor vs. Hero Motocorp : Conclusion
TVS Motor Company Ltd: Known for its innovation and diverse two-wheeler portfolio, TVS excels in catering to various customer segments. Its strong focus on technology, global presence and sustainable practices position it as a dynamic and forward-looking player in the competitive automotive market.
Hero MotoCorp Ltd: As the world’s largest two-wheeler manufacturer, Hero dominates the commuter segment with fuel-efficient, budget-friendly motorcycles. Its extensive distribution network and strong brand loyalty solidify its market leadership, despite challenges in premium and electric vehicle segments.
Best Two-Wheeler Sector Stocks : TVS Motor vs. Hero Motocorp : FAQs
What is TVS Motor Company Ltd?
TVS Motor Company Ltd is an Indian multinational automotive manufacturer known for producing motorcycles, scooters and three-wheelers. Established in 1978, it is a part of the larger TVS Group and is recognized for its commitment to innovation and quality in the two-wheeler segment.
What is Hero Motocorp Ltd?
Hero Motocorp Ltd is a leading Indian motorcycle and scooter manufacturer, known for its wide range of two-wheelers. Established in 1984, the company has gained recognition for its innovative designs and fuel-efficient vehicles, making it one of the largest two-wheeler producers globally.
What are Two-wheeler Stocks?
Two-wheeler stocks represent shares of companies manufacturing motorcycles, scooters, and mopeds. These stocks are part of the automobile sector and reflect demand trends driven by affordability, urban mobility, and rural markets. Key players like Hero MotoCorp, Bajaj Auto, and TVS Motors dominate India’s two-wheeler segment, offering investment opportunities in the growing mobility market.
Who is the CEO of TVS Motor Company Ltd?
K. N. Radhakrishnan serves as the Director and CEO of TVS Motor Company Ltd. He holds a Master’s degree from the Indian Institute of Technology, Chennai and has completed a Management Education Program at the Indian Institute of Management, Ahmedabad. Radhakrishnan began his career as a Management Trainee at Sundaram-Clayton Limited, the holding company of TVS Motor and has been instrumental in the company’s growth and global expansion.
What Are The Main Competitors For TVS Motor And Hero Motocorp?
The main competitors for TVS Motor and Hero MotoCorp include Bajaj Auto, Honda Motorcycle Scooter India and Royal Enfield. These companies compete in various two-wheeler segments, including commuter bikes, scooters and premium motorcycles, targeting diverse customer bases in India and international markets.
What Is The Net Worth Of Hero Motocorp Ltd Vs TVS Motor?
As of December 2024, Hero MotoCorp Ltd has a market capitalization of approximately ₹926.10 billion, reflecting its valuation in the stock market. In comparison, TVS Motor Company Ltd’s market cap stands at around ₹1.15 trillion, indicating a higher market valuation. These figures highlight TVS Motor’s larger market capitalization relative to Hero MotoCorp.
What Are The Key Growth Areas For TVS Motor?
TVS Motor focuses on expanding its global footprint, strengthening its electric vehicle (EV) portfolio and enhancing its presence in the premium motorcycle segment. The company emphasizes innovation, sustainable practices and leveraging technology to cater to evolving consumer demands and capitalize on emerging market opportunities.
What Are The Key Growth Areas For Hero Motocorp?
Hero MotoCorp’s key growth areas include expanding its electric vehicle (EV) offerings through its Vida brand, strengthening its premium motorcycle portfolio and increasing its global presence. The company also focuses on technological innovation and sustainability to meet evolving customer needs and maintain its market leadership.
Which Company Offers Better Dividends, TVS Motor Or Hero Motocorp?
Hero MotoCorp offers better dividends compared to TVS Motor, with a higher dividend yield consistently exceeding 3%. This reflects Hero’s focus on returning value to shareholders, while TVS Motor prioritizes reinvestment in growth areas like electric vehicles and global expansion, resulting in lower dividend payouts.
Which Stock Is Better For Long-term Investors, TVS Motor Or Hero Motocorp?
For long-term investors, TVS Motor may offer better growth potential due to its strong focus on electric vehicles, global expansion and innovation. Hero MotoCorp, while providing stability through dividends and market leadership, faces challenges in premium and EV segments, impacting long-term growth prospects.
Which Sectors Contribute Most To TVS Motor And Hero Motocorp’s Revenue?
TVS Motor’s revenue primarily comes from its diverse two-wheeler portfolio, including scooters, motorcycles and mopeds, along with a growing contribution from international markets. Hero MotoCorp generates most of its revenue from commuter motorcycles, dominating the mass-market segment in India with affordable and fuel-efficient offerings.
Which Stocks Are More Profitable, TVS Motor Or Hero Motocorp?
Hero MotoCorp is currently more profitable due to its dominant market share in the commuter motorcycle segment and higher net profit margins. However, TVS Motor’s focus on premium offerings, electric vehicles and global markets positions it for potentially stronger profitability growth in the future.
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Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
