TVS Supply Chain Solutions
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
TVS Supply Chain Solutions has demonstrated a strong recovery trajectory, with management highlighting double-digit growth across its Integrated Supply Chain Solutions (ISCS) and Global Forwarding Solutions (GFS) segments. The company is strategically focusing on profitable growth, particularly through new business wins that are expected to enhance margins. Despite a temporary dip in ISCS margins due to upfront costs, management anticipates a recovery to 9%+ by Q2 and 9.5%-10% by Q4, supported by a robust business development pipeline of INR 6,100 Crore. The ongoing expansion into high-value sectors such as aerospace and defense is expected to significantly contribute to revenue over the next five years. Vista's financial outlook reflects stable revenue growth and margins, with a cautious investor sentiment leading to a strong sell recommendation. The logistics industry is benefiting from government support and improving pricing power, although rising operational costs and geopolitical risks present challenges. Over the next 12-24 months, key opportunities include leveraging technology for operational efficiency and expanding into high-growth sectors, while watchpoints include potential margin pressures from rising costs and geopolitical uncertainties
Why We Like This Stock
- Strong double-digit growth in ISCS and GFS segments, indicating robust demand
- Strategic focus on high-value sectors like aerospace and defense, expected to enhance revenue
- Management's confidence in margin recovery and disciplined capital allocation supports long-term growth
Things To Watch Out For
- Temporary margin pressures in ISCS due to upfront implementation costs
- Geopolitical risks and pricing pressures in the GFS segment could impact profitability
- Rising operational costs and inflationary pressures may squeeze margins in the near term
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,200 | 9,996 | 11,003 | 12,265 | 13,440 |
| Profit Before Tax (Cr.) | -18 | 29 | 274 | 162 | 216 |
| PBT Margin | -0.2% | 0.3% | 2.5% | 1.3% | 1.6% |
| Net Profit (Cr.) | -152 | -39 | 200 | 121 | 160 |
| Earnings Per Share | -3.7 | -1.0 | 4.5 | 2.7 | 3.6 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
TVS Supply Chain Solutions Limited provides integrated supply chain solutions in India. The company operates in two segments, Integrated Supply Chain Solutions (ISCS) and Global Forwarding Solutions (GFS). The ISCS segment engages in sourcing and procurement, integrated transportation, logistics operation centers, in-plant logistics, finished goods, aftermarket fulfillment, and supply chain consulting operations, as well as offers integrated final mile solutions, including closed loop logistics and support, which comprises spares logistics, break-fix, refurbishment and engineering support, and courier and consignment management services. The GFS segment offers global forwarding solutions, such as managing end-to-end freight forwarding and distribution across ocean, air and land, warehousing and at port storage, and value-added services. The company serves automotive, beverage, consumers, defence, e-commerce and omnichannel, financial services, healthcare, industrial, rail, telecommunication, tech and tech infra, and utilities sectors. The company was formerly known as TVS Logistics Services Limited and changed its name to TVS Supply Chain Solutions Limited in November 2019. TVS Supply Chain Solutions Limited was incorporated in 2004 and is headquartered in Chennai, India.