Equitymaster Agora Research Private Limited

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Welcome to the fifth issue of Smart Money Secrets!

If there is one super investor in India who believes in the popular adage, 'Practice what you preach', he is none
other than Professor Sanjay Bakshi.

Not only is Sanjay Bakshi a well-known and respected professor, teaching MBA students a popular course on
'Behavioral Finance & Business Valuation', he also owns a fund called Value Quest India Moat Fund. This fund
relies on moat based investing while investing money in businesses and their stocks.

Professor Bakshi is an ardent Warren Buffett and Charlie Munger follower, much like we are. We had a wonderful
opportunity to interview Mr Bakshi earlier this year and got a glimpse into his career as a successful investor.

We wanted to know his story, particularly how he evolved as an investor over the years.

This is what he had to say:

"Buffett's letters marked the beginning of my investing journey. Those letters also led me to his mentor Benjamin
Graham. Graham was a big influence towards shaping my investment philosophy in the initial days. Between
1994-2011, I was a statistical bargain investor, a risk arbitrageur, and also an activist investor. My focus was more
towards risk arbitrages, special situations, and cigar butt investing."

"By 2011, I transitioned from a quantitative-focused investor who would look for margin of safety only in a low price
in relation to estimated intrinsic value, into a qualitative investor who sought margin of safety from the quality of the
business, the quality of the people running it, and of course also from a low price in relation to probable future value
in the future."

Indeed, Professor Bakshi firmly believes in three critical criteria when making a buying decision - Business quality,
management quality, and valuation. If he is satisfied with all three, then he goes ahead and snaps up a stake in the
business.

It is crucial to understand that he does not compromise on either one. This means, he will not consider poor
businesses even if they are very attractive valuation-wise.

We, personally, admire his investment philosophy and approach. And we have been telling our subscribers that he
is a pattern seeker. He seeks success patterns and avoids failure patterns.

One of the patterns he likes is, 'Buy Commodity and sell Brand'. This helps him identify a company in a commodity
space with characteristics of non-commodity business.

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 While the broader market values the company as a commodity player, he builds his stake. And once the broader
market knows about the non-commodity nature of the business, the stock price appreciation benefits him.

We believe, recently, he has seen some of the non-commodity characteristics in an otherwise commoditized tyre
business. Enter TVS Srichakra.

Value Quest India Moat Fund recently entered this highly efficient player in the tyre industry.

We re-met the company's management. We liked the business. We believe that what makes TVS Srichakra even
more compelling is that in an industry which is largely commoditized, it has been able to report robust financials.

So without much ado, let me discuss in detail TVS Srichakra Ltd, our fifth recommendation under our service.

Why a Tyre Company?

Well, a tyre is one of the most important components of any automobile.

Choosing the right tyre plays a key role in offering a smooth ride and efficiency. This is the reason the industry is
dominated by top ten players (85-90%).

Tyres are engineered differently to fit a specific purpose and application while boosting performance of the
vehicle.

It is impossible to drive an automobile without tyres; and any OEM cannot afford to fail on the quality of the tyres.

However, if we look at the cost of the tyre, in the overall cost of automobile, it is negligible. Even though the cost of
a tyre is low, one cannot afford to fail on its quality.

Now, this brings me to one of the patterns Professor Bakshi prefers to see in the companies he invests:

'Low Cost of ownership, High cost of Failure'

However, this does not diminish the fact about tyres being a commodity business.

Here is one more pattern the professor looks for in the companies he invests:

'Buy Commodity and Sell Brand'

The tyre industry is nothing more than a commodity business. The profitability is a function of OEM pricing and
raw material cost, both of which are not in control of the players in the industry.

From history we know, a niche player with some uncommon characteristics in a commodity business
commands a very strong moat in the long run.

Some patterns that we see emerging for TVS Srichakra:

Pattern 1#: TVS Srichakra (TVSSC) is a TVS group company.

Apart from the third largest two-wheeler player, i.e. TVS Motors, there are many group companies like Sundaram
Fasteners, Sundaram Claytons, etc. which dominate their respective markets.

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 All these group companies deal with the same Original Equipment Manufacturers (OEMs). They have a very good
standing in their own market (high quality, good brand value among the OEMs). This increases the dependence on
the group.

Now, this not only helps the company in cross-selling its products, it also helps the company to better pricing
terms (Read - Pricing Formula agreement with the OEMs).

In fact, this helps in increasing client stickiness.

Pattern 2#: While major tyre companies have diversified into all segments, TVSSC has been very focused on the
two and three-wheeler segment. Not only does it dominate the OEM segment, it now ranks third in the aftermarket.

Again, all the auto-ancillary group companies cater to the aftermarket. The TVS brand enjoys good recall value.

The strong dealer network of more than 3,000 dealers across the country is strengthening the company's
resilience to commodity prices (higher realization in the after-market).

Lately, the company has been focusing on the brand. This is a sign we like to see in any company in the
commodity business.

Consider these magical lines by the management in this year's annual report:

"Further to this, your company focuses upon the better utilization of assets to improve efficiencies, reduce working
capital requirements, and build a stronger brand with future prospects in mind."

Pattern 3#: After aggressively increasing market share in the domestic aftermarket, the company is now targeting
the export replacement market. As we know in the last decade, two-wheeler players have created a huge two and
three-wheeler market in African and Middle East countries.

The increasing use of Indian automobiles have created a huge aftermarket for two and three-wheeler industry in
those countries.

Now, the management is targeting that market aggressively, which will again lead to better realisations, and hence
better margins. This is what the management quoted in their annual report FY17:

'Exports will be in the focus area to leverage upon the large base of Indian manufactured vehicles on foreign soil'.

We see the initial signs of patterns that can take this company from a pure commodity player to the 'Buy
commodity, sell brand' state.

So even if these patterns don't play out, the company is well poised to benefit from the revival of the auto industry
in India.

Is it worth buying at these levels? Read on to find out...

Company Profile - TVS Srichakra Ltd

TVS Srichakra (TVSSC) is one of the emerging companies of the TVS group. The company is a leading
manufacturer of two-wheeler tyres in India and caters to both OEMs and aftermarket segments. It also
manufactures Off Road Tyres (OTR) for the export market.

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 The company has two manufacturing plants, one each in Madurai in Tamil Nadu and Rudrapur in Uttarakhand,
with a combined installed capacity of 22.8 million tyres per annum.

TVSSC is a market leader in the OEM segment and the company derives more than 50% revenue from the OEM
segment. The company has achieved this feat due to its dedicated focus in the two and three-wheeler segment.

TVSSC's clients in the two-wheeler segment include Hero Motocorp, Bajaj Auto, Honda Motorcycle & Scooter, TVS
Motor, Yamaha Motors, and Suzuki Motorcycles, Mahindra 2 wheelers etc. Similarly, in the three-wheeler segment,
the company provides tyres to companies such as Bajaj Auto, Atul Auto, and Piaggio.

TVSSC has built very strong brand and manufacturing capabilities to become the market leader in the two-wheeler
OEM segment.

In fact, it can be considered as a proxy player for domestic two-wheeler industry as the company's sales and
profitability are closely linked with that of two-wheeler players such as Hero Motocorp, Bajaj Auto, Honda
Motorcycle & Scooter, TVS Motor, Yamaha Motors, and Suzuki Motorcycles etc.

The two and three-wheeler industry is less cyclical as compared to the overall auto industry due to many factors
such as low cost of ownership, lesser vulnerability to the economic environment etc.

The company has been very focused in its market and has been aggressive towards the OEMs.

The OEM market is very competitive in nature i.e. there is no pricing power. With the major raw material being
rubber (commodity), the operating margins are vulnerable. To counter this TVS has carved a niche for itself by
doing this:

Formula based Pricing - TVSSC's operating margins over the coming years are less likely to be exposed
to rubber price volatility as the company has a formula-based pass-through of raw material price
changes in the contract with OEM players thereby passing the increased raw material cost to OEMs.
(The price alignment is done on a quarterly basis)

Increasing Share of Replacement Market - The company derives better pricing power and margins in
the replacement market (aftermarket). TVSSC is now the third largest player after MRF and CEAT. Over
the years the company has increased contribution of revenue from aftermarket from ~25% in FY13 to
38% in FY17.

TVSSC has strengthened its presence in the aftermarket segment due to following:

Strong distribution Network: TVSSC has a strong distributor and dealership network of over 3,000 across
the country. Instead of an exclusive dealership, TVSSC operates through a network of distributors, who
in turn supply to retail dealers. With this strategy, there is no heavy investment in the distribution
network and the company is able to penetrate better, especially in tier-2 and tier-3 cities.

Aggressive branding and promotion: TVSSC has been aggressive in branding and promotion. In 2015,
TVSSC has revamped its identity with an Eagle logo and since then has been investing very strongly into
its product and marketing.

The company has roped in Kapil Sharma as the face of its new campaign "The Totally Tikau", where the
focus is on humour for connecting with the audiences. TVSSC is also the principal sponsor of IPL Team

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 -Gujarat Lions and recently signed up as an associate sponsor for Kabbadi team- Puneri Paltan. All these
efforts are expected to create more visibility for the brand.

Increasing Brand Awareness

www.equitymaster.com Source: Rediffusion Y&R

In addition to this, one should note that TVS group has a very strong brand recall, which means TVSSC
need not create all together a new brand. All it need to do is re-calibrate the existing group brand
(leveraging on the brand of the TVS group).

Tubeless tyres gaining ground: In the Indian market almost all the automobile manufacturers are
launching their vehicles with tubeless tyres. This will further boost demand for the tyres in aftermarket
segment.

Not to mention, the tyre replacement cycle is also reducing despite improvement in the technology. This
is due to increase in usage of two-wheelers especially by the younger generation, road conditions, and
an excess load which leads to wear and tear much faster.

Unlike passenger vehicle and MHCV aftermarket segment where Chinese tyres have a significant
presence, this segment is not impacted by Chinese imports due to low ticket sizes.

Targeting Exports Market - TVSSC's export revenue mainly comes from off-road tyres which include
tyres for tractor, farm, forklift etc.

TVSSC exports mainly to European and the US markets. Although currently, two-wheeler export
contribution is small, there is a significant opportunity in export markets such African countries, South
America and South-East Asia.

We believe if company is able to establish itself in the two and three-wheeler exports market, this can be
a game changer for the company as the realizations in the exports business are very high compared to

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 the domestic business.

Contract Manufacturing with Michelin

Michelin has entered into an agreement with TVSSC to manufacture two-wheeler (motorcycle and scooter) tyres.
TVSSC has a dedicated capacity of 3.6 million tyres within its existing plant in Madurai.

These tyres are sold under the brand name of Michelin. This capacity is around 12% of the capacity installed. This
provides revenue visibility for the company. Also, it shows TVSSC's technological and manufacturing capabilities.

How is a tyre manufactured?

Manufacturing of a tyre is complex. It requires a range of activities from mixing of rubber compound to actual tyre
building and treading. Below is the complete manufacturing process of a rubber tyre.

Manufacturing Process - Tyre

Rubber is the most important ingredient in tyre manufacturing. There are four major rubbers (natural rubber,
styrene-butadiene rubber, polybutadiene rubber, and butyl rubber) for rubber manufacturing.

While natural rubber is primarily used for the tread and sidewall, butyl rubber and halogenated rubber is used for
inner liners etc.

Now, other than rubber, one of the important components that goes into manufacturing of tyre is filler. The most
popular fillers are carbon black and silica.

What are the different types of Tyres?

Radial tyre has replaced the bias ply tyres across segments globally. The radial tyres command many advantages
over the bias (traditional tyres) like - improved ride performance, better fuel efficiency, higher self-life, long tread
life among others.

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 What is a Radial Tyre?
Radial tyres lay all the cord plies at 90 degrees (against 60 degrees in bias tyres) to the direction of travel (that is,
across the tyre from lip to lip). (see the manufacturing process)

This design avoids having the plies rub against each other as the tyre flexes, reducing the tyre's rolling friction.
This allows vehicles with radial tyres to achieve better fuel economy than with bias-ply tyres.

Cross-ply is an old manufacturing technology and has been almost discarded by developed economies like USA
and Europe long back. However, in India it is still dominant. Some of the key attributes of cross-ply tyres which
make it popular in India are its adaptability on poor road conditions, suitability in case of overloading of vehicle
and cheaper price.

However, its penetration levels have witnessed gradual decrease in the last few years owing to increasing
awareness about the inherent advantages of radial tyres.

Acceptance of radial tyres, which are of superior quality and have a longer life-cycle, as compared to cross-ply
tyres, has been continuously increasing in the Indian market.

However, because of their higher price and lower adaptability in bad road conditions, these tyres are less preferred
for vehicles with commercial usage like trucks, buses, LCVs, tractors etc.

However, growing awareness about the advantages of radial tyres has led increasing proportion of vehicle
operators across all the vehicle categories to migrate towards radial tyres.

Over the last few years, India has seen increased adoption of radial tyre technology. Despite almost 100%
radialisation in the passenger car tyre segment, in the commercial vehicle and two-wheeler segments, India still
has a lot of potential for growth.

The increase in research and development by domestic players to make cost effective radial tyres, coupled with
growing low-cost Chinese imports, the process of radialisation of commercial vehicle and two-wheeler segments
is expected to happen at a faster rate.

How big is the Tyre Market?

The Indian tyre industry is highly fragmented with around 40 players. However, top 10 players command around
85-90% of the market share. As per CARE ratings, the total domestic tyre market is estimated at Rs 535 billion.
This excludes the exports market of around Rs 100 billion.

Indian tyre market is dominated by two and three-wheeler industry (market share - 53%), followed by passenger
vehicles (28%) and commercial vehicle segment (16%). Tractor enjoys the remaining 3%.

The domestic industry essentially caters to two segments - 1) Original Equipment Manufacturers (OEMs) and; 2)
Replacement market (Aftermarket). The replacement market dominates the OEM market with a market share of
56%.

The major reason for high replacement share is due to the number of registered vehicles/annual sales remaining
at about 10x at close to 20 crore registered vehicles (industry estimates) vis- à-vis ~2.4 crore annual vehicle sales.

The growth in the tyre industry is highly dependent on the growth of the automobile industry. While the OEM
segment is cyclical in nature, the replacement and exports segment helps in reducing the cyclicality.

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 The auto industry has been one of the worst hit in the last one year due to the advent of demonetisation, BS norms
transition and then the GST. The industry has seen a lot of disruption.

However, now the sky looks clear and auto industry is well poised to grow with tailwinds such as low cost of
ownership. Further, lower interest rates, stable fuel prices, good monsoons bode well for the auto industry.

And if the auto industry does good, the tyre industry will follow suit.

Who Owns the Company?

Our love to find owner-operators is well known to our subscribers. What we mean by owner-operator setup is
owners who are involved in the operations of the business. This gives us the comfort on the incentives of the
owners.

TVS Srichakra Ltd is promoted by TVS Group. TVS Group is one of India's largest industrial conglomerates.

TVS Group is India's leading supplier of automotive components and one of the country's most respected
business groups.

Together with the family, the promoters group holds around 45.36% in the company. In fact, promoters
consistently increased their stake in the company over the years from 39.4% in Mar-2004 to 45.36% in Jun-2017.

What we like more is the presence of a catalyst, i.e. Super Investor in the company.

Super Investors, Sanjay Bakshi (Valuequest India Moat Fund Limited) and / Anuj Sheth (Gagandeep Credit Capital
Pvt.Ltd) currently hold around 5.9% of the company.

Smart Money Betting Big

Shareholding Greater than 1% details - Enter Super Investors Sanjay Bakshi and Anuj Sheth
Super Investor, Anuj Sheth (Gagandeep Credit Capital Pvt.Ltd) is one of the biggest shareholders in TVS Srichakra.
He purchased 3.88% stake in the company way back in FY08 and consistently maintained the level till FY11. In
FY12, he further increased his stake to 4.53%.

As per the latest shareholding pattern (June-17), he holds a 4.4% stake in the company. In addition, super investor,
Sanjay Bakshi recently entered and holds around 1.5% stake in the company, thus further strengthening the hold
of super investors on the company.

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 Super Investors - Anuj Sheth and Sanjay Bakshi Hold a Significant Stake

We believe smart money catalyst is present in TVS Srichakra. In fact, smart money is betting big on this company.

About the Owner Operators

T V Sundram and Sons Pvt Ltd has the largest promoter stake in TVS Srichakra at around 28%. As mentioned
earlier, this is the holding company of the TVS Group; the latter being a diversified industrial and automotive
conglomerate. TVS Group has a slew of companies under its umbrella, the largest and the most recognized is the
two-wheeler player TVS Motors. TVS Srichakra is also part of the TVS Group.

The TVS Group is known and respected for its excellence in the auto and auto component industry. Thus, for the
group every TVS company, including TVS Srichakra, is important when it comes to catering to the industry.

With respect to TVS Srichakra in particular, the company treats all its clients equally, which means that no
preference is necessarily given to TVS Motors.

The MD of TV Srichakra, Ms Shobhana Ramachandran, holds around 4% stake in the company. She has been
instrumental in making TVS Srichakra one of the leading manufacturers of two and three-wheeler tyres in the
country and also the top supplier to two and three-wheeler vehicle manufacturers.

Further, she has played a significant role in the company's brand-building strategy as well as expanding the market
globally for its off-road tyres. Ms Shobhana Ramachandran strongly believes in always improving quality of
service, be it introducing modern technologies or establishing a profitable relationship with customers, suppliers
and stakeholders.

Owners Are Increasing Stake

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 Does the Company Qualify on Equitymaster's Smart Money ScoreTM?
We believe, any good business needs to pass our checklist i.e. smart money score. You can find a detailed
explanation of what the smart money score in our guide. Smart Money Secrets - A Quick Start Guide.

1. Smart Money Invested - One of the important catalysts we look in a stock is the smart money. Based on the
holding (higher the better) and our comfort with super investor we assign a rating on a scale of 10.

We also like to see either the super investor or the promoters of the company increase their stake in the
company.

In the case of TVS Srichakra Ltd, two super investors have a good stake in the company. As we have
highlighted earlier, one of the super investors is Professor Sanjay Bakshi, whose Value Quest India Moat Fund
picked up 1.49% stake in the company in March 2017.

The other investor is Gagandeep Credit Capital led by super investor Anuj Anantrai Sheth. Gagandeep
increased its stake in TVS Srichakra to a sizeable 4.53% in March 2012 and has held on to this position for the
last 6 years.

Super Investor: Snajay Bakshi (Value Quest Moat Fund) Recently Buying Stake

Sanjay Bakshi (Value Quest India Moat Fund) - - - 1.49 1.49

Gagandeep Credit Capital Pvt Ltd. 3.88 4.53 4.53 4.53 4.40

Source: Stock Exchange, Equitymaster

The promoters also have a robust stake in the company. The promoter group holds around 45.36% with
around 28% held by TVS Group's holding company T V Sundram Iyengar & Sons Pvt Ltd. Ms Shobhana
Ramachandran, who has been the Managing Director of the company since August 1986, increased her stake
from 3.32% in March 2014 to 3.58% in March 2015 and has maintained her stake since then.

The Executive Vice Chairman Mr R Naresh also increased his stake from 1.28% in March 2014 to 1.67% in
March 2015 and has maintained his stake since then.

Promoters Increasing Stake

T V Sundram lyengar & Sons Pvt Ltd. 27.73 27.73 27.73 27.73 27.73

Sundram Industries Pvt Ltd. 9.79 9.79 9.79 9.79 9.79

Ms Shobhana Ramchandran 3.32 3.32 3.58 3.58 3.58

Mr R Naresh 1.28 1.28 1.67 1.67 1.67

Others 3.26 4.22 3.57 2.59 2.59

Total 45.38 46.34 46.34 45.36 45.36

Source: Stock Exchange, Equitymaster

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 Keeping in mind that there is a super investor catalyst (Prof Bakshi recently picking up stake) and the
promoters also increasing their stake, we assign a rating of 10 to TVS Srichakra Ltd.

2. Business Quality - One reason that makes TVS Srichakra such a compelling story is that it has robust
financials despite operating in 'commodity-type business' i.e. the tyre industry.

For starters, the company is a market leader in the two and three-wheeler domestic OEM tyre market and the
No.3 in the aftermarket segment. Since inception, the company has focused on what it does well:
manufacturing two-wheeler tyres. This strategy helped TVS Srichakra in many ways.

First, the company has become a specialist and a leader in the two and three-wheeler segment. Over the
years, TVS Srichakra has built strong relationships with leading two-wheeler manufacturers. This includes
Hero Motocorp, Bajaj Auto, Honda Motorcycle & Scooter, TVS Motor, Yamaha Motors, and Suzuki Motorcycles.

With strong in-house R&D, testing, and design capabilities, TVS Srichakra works closely with its OEM partners
to produce top quality tyre products customised to suit specific brand and variant fits. No wonder TVS
Srichakra derives more than 50% of its revenue from the OEM segment.

Second, with its specialist knowledge of products and services, TVS Srichakra has a marketing and
distribution advantage. For a non-niche business, knowing a little about a lot of things is not a convincing USP.

The company has a distribution network of more than 3,000 dealers who have a presence in semi-urban, rural,
and metro regions. With more focused marketing and communication channels, TVS Srichakra knows where
to concentrate its efforts to best effect.

With this strategy, TVS Srichakra has grown at a CAGR of more than 20% in the aftermarket segment, which
has higher margins compared to the OEM segment. This is how TVS Srichakra has managed to beat the
overall industry, which has registered subdued growth in the last few years.

Last but not the least, TVS Srichakra has made a conscious decision to stay in the two and three-wheeler
segment and not diversify into the truck and bus or passenger car tyre segments.

All of these factors have ensured that TVS Srichakra's return ratios have remained healthy.

Indeed, the quality of the business is reflected in the following metrics.:

Business Quality

ROEs (out of 1.5) 38% 25% 1.5

ROCES (out of 1.5) 34% 28% 1.5

Total     3

       

Topline Growth (out of 1) 6% 15% 0.5

Bottomline Growth (out of 1) 31% 14% 1

Operating Profits (out of 1) 17% 14% 1

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 Total     2.5

       

D/E 1.3 0.4 0.5

       

OCF/PAT 2.0 1.6 2

Source: Company Annual Report, Equitymaster

TVS Srichakra has displayed a very strong performance over the years. Not only has the growth in both
operating and net profits been strong, but the company's return ratios have been healthy too.

This is commendable given the kind of competition in the tyre industry and its commodity like characteristics.
It also speaks volumes of the strength of the management's long term strategy.

Having said that, despite the robust return ratios - Return on Equity and Return of Capital employed being
north of 30%, lean balance sheet, and robust cash flow generation, the company does not score too well on
the debt to equity front. This ratio stood at around 1 times in the last five years, although we expect it to come
down going forward (D/E~0.5 times in FY17). Hence, we assign a rating of 8 on business quality.

3. Competitive Advantage: Generally, it is not easy to enjoy a competitive advantage or moat in commoditized
industries. One reason is because commodities lack differentiation. Which means there are hardly any entry
barriers. As a result, commodity based companies face intense competition and have low pricing power. The
other reason is that commodities are influenced by demand cycles, making earnings inconsistent.

The tyre industry is no exception and does have 'commodity-type' characteristics.

Indeed, rubber prices greatly influence earnings. And there is not much to differentiate between tyres despite
the branding exercise undertaken by companies.

So what has made TVS Srichakra stand out?

First, the company is a specialized player focusing only on the two-wheeler and three-wheeler tyre segment.
Which means that it does not want to be in a situation where it is the jack of all trades but a master of none.

So rather than focus on all segments of the auto industry like its bigger peers MRF and Ceat are doing, TVS
Srichakra has decided to specialize and cater to only one or two segments of the auto industry.

This strategy has worked because the company is a leader in the original equipment manufacturer (OEM)
market.

Second, TVS Srichakra has strong in-house R&D and design capabilities. This has enabled the company to
build strong relationships with all the leading two-wheeler manufacturers including Hero MotoCorp, Bajaj
Auto, Honda Motorcycle & Scooter, Yamaha Motors, and Suzuki Motorcycles. Indeed, TVS Srichakra derives
more than 50% of its revenue from the OEM segment.

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 The company's technological capabilities have also resulted in a tie-up with Michelin to manufacture
two-wheeler tyres.

Third, TVS Srichakra boasts of a robust distribution reach. Thus, with a network of more than 3,000 dealers
and strong marketing promotions, the company has been able to expand in the two-wheeler aftermarket where
it is the third largest player after MRF and Ceat. The contribution from the aftermarket has risen from 25% in
FY13 to 38% in FY17. The high margins of this segment have also boosted the company's profitability.

Fourth, TVSSC is a TVS group company. Apart from the third largest two-wheeler player i.e. TVS Motors, there
are many group companies like Sundaram Fasteners, Sundaram Claytons etc which dominate their respective
markets.

All these group companies deal with the same OEMs. Now all these group companies have a very good
standing in their own market (high quality, good brand value among the OEMs). This increases the
dependence on the group as whole.

Now, this not only helps the company in cross-selling its products, it also helps the company in better pricing
terms (Read - Pricing Formula agreement with the OEMs).

Fifth, Indian two and three wheelers have started dominating Middle East and African markets in the last
decade. Bajaj Auto (leader) and TVS Motors have been pioneers in creating that market. Now, that has created
a huge replacement market in those countries.

TVS is already a recognized brand in those markets and now TVSSC is entering those markets which have a
huge potential to grow. Further, this will again lead to resilience of operating margins against the raw material
sensitivity.

However, recently players like JK Tyres and Apollo Tyres have entered the domestic two and three-wheeler
industry, this can be a party spoiler TVSSC's dominance in the OEM industry. So, we penalize the company for
the increasing competitive intensity by 2 points.

Thus, after doing a detailed analysis regarding Industry Rivalry, Bargaining Power of Buyers, Bargaining Power
of Suppliers, Threat of New Entrants and Threat of Substitutes, we assign a rating of 8 to TVS Srichakra for its
economic moat.

4. Soul in the Game: The idiom of soul in the game stands for the owner operated companies i.e. companies
where owners and operators of the business are same. We believe higher stake and active involvement in the
business puts the incentives perfectly aligned.

So, we look out for companies owned and operated by good managers.

The largest promoter holding is by T V Sundram Iyengar & Sons Pvt Ltd at around 28%. This is the holding
company of the TVS Group; the latter being a diversified industrial and automotive conglomerate. TVS Group
has a myriad of companies under its belt, the largest and the most recognized is the two-wheeler player TVS
Motors. TVS Srichakra is also part of the TVS Group.

The TVS Group largely focuses on automobiles and auto components and so most of the companies under its
umbrella cater to the auto segment.

In that sense, besides the more visible TVS Motors, TVS Srichakra is also an important company for the group

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 especially given its strong position in the two-wheeler tyre segment. This is apparent from the fact that the
Holding company has maintained its stake in the TVS Srichakra over the last many quarters.

The other factor that gives us comfort is that the Managing Director (MD), Ms Shobhana Ramachandran has
also increased her stake in the company from 3.32% in March 2014 to 3.58% in March 2015 and has
maintained her stake since then.

She is the great granddaughter of the iconic T V Sundram Iyengar and has been MD of the company since
August 1986. She has led TVS Srichakra to become one of the leading manufacturers of two and three-
wheeler tyres in the country and also the top supplier to two and three-wheeler vehicle manufacturers. Further,
she has played a significant role in the company's brand-building strategy as well as expanding the market
globally for its off-road tyres.

Further, in FY12-17, the total salary drawn stood at 9% of the total profits earned during the same period. In
FY17, in particular, salaries accounted for 12% of net profits. However, it must be said that in absolute terms
there was a reduction in salaries.

Thus, this number appears a bit on the higher side in percentage terms simply because of fall in profits.
Overall, the salary numbers are decent given the kind of involvement and improvements the management
provides to the company.

Also, we have gone through the auditor's report and Related Party Transactions; even though the company
has entered in some related party transactions, we do not find any material transactions which may raise
questions on the management integrity.

We believe, management has put its soul in the business. This is a kind of pattern our Super Investors look
out for. Thus, we assign a rating of 9 on this parameter.

5. Capital allocation: One of the patterns our super investors and we seek for is the efficient capital allocation by
the management. The best way to evaluate this could be to look at both the sources and the application of the
funds by the management over a period.

Sources of Funds
By sources of funds we mean the money raised by the company to grow its business. Typically, there are three
big sources i.e. Equity Dilution, Raising Debt and Internal Accruals (cash generated by the business).

We love the companies with capabilities of funding their growth using cash generated by the business itself.
Further, if these companies are present in the industries with big market opportunity, sky is the limit for them.

In case of TVS Srichakra Ltd, in the period FY12-17, of the total funds raised by the company, over 90% of the
total funds were generated by the business. We believe this shows the robustness of the company's business
model. This shows the growth has been funded by cash generated by the business.

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 Sources of Funds over FY12-17

Application of Funds
After sourcing the capital, the next and most important aspect is the allocation of the raised money. We
believe generating cash from the business is not enough, it is very important for the company to deploy the
same in profitable ventures.

In the case of TVS Srichakra, the management has used cash very optimally with around 35% going towards
growth capex, around 15% towards the payment of dividend. The payment of dividend again gives us comfort
for the shareholders of the company.

Application of Funds over FY12-17

We believe that TVS Srichakra Ltd has been a good allocator of capital.

We believe the management understands capital allocation well and has been very prudent in allocating
capital in the past. We assign a rating of 10 for capital allocation.

6. Earnings Quality: One of the key challenges while evaluating small and mid-cap companies is the quality of
their earnings.

The growth in the sales and profits should translate into cash flows for the company. There should be a good
comparison between the accounting and cash profits to understand the quality of the earnings.

One crucial tool to check the earnings quality is the proper analysis of the Cash Flow Statements (which many

15 of 25
 people miss to look at).

Over the years, we have found a similar pattern in companies that were fraudulent or bankrupt or both in India
and abroad. The usual culprit in both the cases involved money stuck in their working capital which meant
accounting profits weren't converted into cash profits.

We have devised a simple way to inspect earnings quality of any company. We begin with cash flow from
operations. Divide it in two parts i.e. Gross Cash Flow from Operations (GCFO) and Net Cash Flow from
Operations (NCFO). The difference being the 'changes in working capital'.

As a thumb rule, for a manufacturing company NCFO as a percentage of GCFO should not be significantly
below sixty percent. This simply means ideally not more than forty percent of the money should be stuck in
working capital.

We applied the same rule on TVS Srichakra and over FY12-17 this number on an average stood at 123% which
is well above the sixty percent rule.

We also compare the net cash flow from operations with operating profits because theoretically they should
be close to each other.

For TVS Srichakra Ltd both accounting and cash operating profits were close.

Further, the company also has a comfortable cash conversion cycle of just above 50 days.

We assign a rating of 10 for earnings quality.

7. Scalability of the Business: Identifying a good business is one thing, identifying a good business with
potential to grow at decent rates for years to come is another. One crucial factor for a business is the size of
the market it caters to.

TVS Srichakra's strategy is to focus on the two-wheeler and three wheeler tyre segment. This means that
growth in two wheeler volumes will also be extremely beneficial to TVS Srichakra.

The growth potential for the two wheeler market is robust in terms of scope of penetration in the rural markets
(this is a big market for the segment), increasing proportion of working women, and various new models being
launched by the two-wheeler manufacturers both in the scooters and motorcycles space.

Since TVS Srichakra has strong relationships with most of the major two-wheeler players it stands to benefit
from this trend.

Also, there is an even bigger potential in the replacement market, an area where the TVS brand is well known.
This means that in very lean years where volumes to OEMs are not growing, the company can still rely on the
replacement segment to do well.

TVS Srichakra's sales and profits have grown at a CAGR of 6% and 31% respectively in the last five years. We
expect the company to deliver revenue and profit CAGR of 15% and 14% respectively over FY17-21.

Given the cyclicality in the nature of the revenue (automobile industry), we assign a rating of 8.

8. Market Leadership: TVS Srichakra has made a conscious decision to stick to the two-wheeler and three-

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 wheeler market instead of having a presence across all the segments of the auto industry. Infact, the company
has no plans of getting into car and truck tyres mainly because of large investment required and competition.
This strategy has worked well for the company as its specialized focus has enabled it to strengthen its
position in the two-wheeler tyre space.

Thus, the company has emerged as the market leader in the two and three-wheeler domestic OEM tyre market
and the No 3 in the aftermarket segment. Not only does the company have strong relationships with major
two-wheeler players but it has also developed robust technological capabilities.

All of this is very apparent when one looks at the company's profitability profile. Operating margins have
improved from 9% in FY11 to 14.5% in FY17. These margins are good in an otherwise commodity type
industry.

Keeping these aspects in mind, we have assigned a rating of 9 to the company on this parameter.

Considering the above analysis, the total ranking assigned to the company is 72 (out of 80). On a weighted basis,
it stands at 9.0. This indicates that fundamentals of the business are robust.

Equitymaster Smart Money ScoreTM

Smart Money Invested 10.0                     15.0% 1.5

Business Quality 8.0                     15.0% 1.2

Competitive Advantage 8.0                     10.0% 0.9

Soul in the Game 9.0                     10.0% 0.9

Capital Allocation 10.0                     10.0% 1.0

Earnings Quality 10.0                     15.0% 1.5

Scalablilty in the Business 8.0                     15.0% 1.2

Market Leadership 9.0                     10.0% 0.9

What are the Risks to be looked out for?

Increase in Raw Material Prices Could Impact Operating Margins and Profitability: A key risk for the
company is the volatility in raw material prices. Natural rubber, synthetic rubber, tyre cords and carbon
black are some of the key raw materials that are used to manufacture tyres and the prices of some of
these have been volatile in the past. Taking a three-year average, these raw materials have accounted for
nearly 56% of the total sales of the company.

The sharp rise in natural rubber prices and other key raw materials and inability to pass on increased
cost, especially in the aftermarket segment will have a negative impact on the company's operating

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 margins. Having said that, the company has a formula-based pass-through of raw material price
changes in the contract with OEM players thereby passing the increased raw material cost to OEMs.

Apart from above, the import duty on natural rubber has been increased from 20% or Rs 30/kg whichever
is lower to 25% or Rs 30/kg, whichever is lower. Any further upward revision in the duty will have an
adverse impact on TVSSC's profitability.

Increasing Competition in the Two-Wheeler Tyre Segment: Until now, two-wheeler segment was
overlooked by players who focused primarily on the truck-bus and car tyres. However, big players such
as Apollo Tyres and JK Tyre Industries have entered the two-wheeler segment. Not to mention, the entry
of foreign players such as Japanese company Bridgestone and Taiwanese tyre manufacturer Maxxis is
investing in a two-wheeler tyre plant in Gujarat.

The new entrants could possibly create a price war in order to penetrate into the already competitive
two-wheeler market. This in-turn could dampen the margins of TVSSC.

Anti-Dumping Duty and European Agricultural Slowdown Could Impact OTR Tyre Segment: TVSSC
exports off-the-road (OTR) tyres (Tyres for Off-The-Road applications, such as mining, earthmoving,
agricultural, industrial and port applications) to the US and Europe. This accounts for about 10% of the
total revenue. The US Department of Commerce has launched anti-dumping investigations into a certain
category of tyres exported from India. The investigations cover certain new pneumatic off-the-road
(OTR) tyres. In its final antidumping and countervailing duty determinations, the agency did issue
countervailing duty rates of 5.06% against Indian manufacturers. This could have an impact on the OTR
tyre segment.

Apart from above, slowdown in the agricultural sector in Europe could affect demand for the OTR tyres.

Any Slowdown in Two and Three-Wheeler Sales Could Have an Adverse Impact: In the last nine
months, TVSSC's performance has been severely affected by demonetisation and GST implementation.
The auto industry is still reeling under pressure from these events. Any further slowdown and lower-
than-expected demand in the aftermarket segment could have an adverse impact on TVSSC's
performance.

Updates On TVS SRICHAKRA: Valuations

Add: Alert | Portfolio
We have valued TVS Srichakra Ltd based on
Market Data price to earnings basis. In fact, given the One could
company is growing rapidly and can surprise consider
Price On Reco. Date (Rs) 3,170 (BSE)
our conservative assumptions on the positive buying the
CMP - BSE / NSE (Rs) 3,200 / 3,209 side, we have conducted a scenario analysis. stock of TVS
Change Since Reco.  0.9% Srichakra Ltd
52-week High/Low (Rs) 4,304 / 2,840 What we have essentially done is kept both at current
the earnings growth and the PE multiple in a price or lower.
NSE Symbol TVSSRICHAK
range that we are comfortable with and have
BSE Code 509243
tried to deduce target price based on different combinations of the same.
No. Of Shares 7.7 m

Face value 10.0

The below permutations and combinations based on earnings growth and
FY17 dividend/share (Rs) 50.7 P/E multiples gives a fair idea about the potential upside for the stock.

18 of 25
 Dividend yield (%) 1.6% However, in addition to this we have derived a target price on basis of our
Stock Classification Small cap numbers.
Free Float 41.6%

Market Cap (Rs m) 24,409

Premium Search

Rs 100 Invested Is Now Worth

View Updated Chart

More On TVS SRICHAKRA

All Recommendation Reports | Latest Update | Latest Stock Quote

Expected Target Price (FY21) Under Different Assumptions of Earnings Growth and P/E Multiples

  14% 15% 20% 25% 30%

12 3,960 4,101 4,862 5,725 6,697

15 4,950 5,126 6,078 7,156 8,371

17 5,611 5,810 6,888 8,110 9,488

18 5,941 6,152 7,293 8,587 10,046

Source: Ace Equity, Equitymaster

TVSSC has created niche for itself by focusing on the OEM market and leveraging the TVS Group brand.

After successfully gaining market share in the domestic replacement market, continued dominance in the
domestic OEM market, TVSSC is targeting the two and three-wheeler replacement market in Middle East and
African countries (where Indian automobile companies has done exceptionally well in last one decade).

With decades of experience and highly efficient operations, TVSSC is showing all signs of non-commodity
business in otherwise commodity tyre business.

Even though the company enjoys industry best return ratios (RoE>31%), improving balance sheet, efficient capital
allocation, robust cash flow generation, the company is still in the commodity tyre business, Thus, we assign a
multiple of 15 times from FY21 perspective.

As such, we have arrived at a target price of Rs 4,934 for the company (from FY21 perspective). This implies a
CAGR of 14% (excluding dividend yield of ~1.6%) and a point to point upside of 58%.

The maximum buy price for the stock is Rs 3,250.

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 According to us, in a scenario of ideal allocation of funds, predominantly mid and small-cap stocks could be
considered to comprise of not more than 30-40% of your total equity portfolio. Further, we believe a single small
cap stock should not form more than 2-3% of the total portfolio. Please note that this allocation will vary from
person to person. For something that works best for you, we recommend you talk to your investment advisor.

Consolidated Financials

Sales 19,375.1 21,764.3 23,391.6 19,605.1 22,871.1 26,538.2 30,233.8 34,480.8

Sales growth (%) 17.3% 12.3% 7.5% -16.2% 16.7% 16.0% 13.9% 14.0%

Gross Profit 6,634.2 8,663.4 11,197.5 8,717.2 9,834.6 11,676.8 13,605.2 15,516.4

Gross Profit Margin (%) 34.2% 39.8% 47.9% 44.5% 43.0% 44.0% 45.0% 45.0%

Operating Profit 1,503.8 2,189.2 3,225.2 2,842.2 2,630.2 3,450.0 4,232.7 4,827.3

Operating Profit Margin (%) 7.8% 10.1% 13.8% 14.5% 11.5% 13.0% 14.0% 14.0%

Net Profit 565.8 1,221.5 1,862.2 1,496.8 1,278.7 1,740.3 2,196.4 2,519.9

Net Profit Margin (%) 2.9% 5.6% 8.0% 7.6% 5.6% 6.6% 7.3% 7.3%

                 

Balance Sheet

Fixed Assets 3,436 3,817 4,388 5,061 6,623 7,383 7,993 8,456

Other Assets 518 568 770 1,913 1,326 1,401 1,483 1,581

Inventories 2,571 2,642 2,116 4,118 3,133 3,272 3,313 3,306

Receivables 3,289 2,248 1,746 2,037 2,193 2,545 2,899 3,306

Cash and Bank Balances 94 114 203 162 203 212 1,045 2,291

Current Assets 6,299 5,311 4,459 6,935 6,238 6,798 8,135 9,904

Total Assets 10,252 9,696 9,617 13,910 14,187 15,581 17,610 19,940

                 

Net Worth 2,134 2,823 4,121 5,611 6,506 7,724 9,262 11,026

Long Term Debt 1,783 1,297 315 238 238 238 238 238

Short Term Debt 1,657 1,129 895 2,761 2,761 2,761 2,761 2,761

Other Non Current Liabilities 693 806 1,198 1,323 1,323 1,323 1,323 1,323

Current Liabilities 5,643 4,770 3,983 6,738 6,121 6,296 6,788 7,354

Total Liabilities 10,252 9,696 9,617 13,910 14,187 15,581 17,610 19,940

Key Financial Ratios

Operational & Financial Ratios

EPS (Rs.) 73.9 159.5 243.1 195.4 166.9 227.2 286.7 329.0

Book Value per share (Rs.) 278.6 368.5 538.0 732.5 849.3 1,008.4 1,209.1 1,439.4

Dividend Payout Ratio (%) 22% 21% 25% 26% 25% 25% 25% 25%

                 

Margin ratios (%)

EBITDA Margins 7.8% 10.1% 13.8% 14.5% 11.5% 13.0% 14.0% 14.0%

EBIT Margins 6.5% 8.3% 12.8% 11.9% 8.8% 10.1% 11.0% 10.9%

PBT Margins 4.0% 7.3% 12.1% 10.8% 7.9% 9.2% 10.2% 10.3%

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 PAT Margins (adj) 3.4% 5.5% 8.1% 7.6% 5.6% 6.6% 7.3% 7.3%

                 

Performance Ratios (%)

ROE 34.8% 48.6% 54.9% 30.8% 21.1% 24.5% 25.9% 24.8%

ROCE 25.5% 33.5% 56.6% 33.4% 22.3% 26.4% 28.8% 28.7%

ROIC 27.0% 34.1% 58.4% 26.2% 20.4% 24.6% 28.9% 32.1%

                 

Turnover Ratios Days

Debtors 52.3 46.4 31.2 35.2 33.8 32.6 32.9 32.8

Inventory 51.5 43.7 37.1 58.0 57.9 44.0 39.7 35.0

Creditors 59.1 38.4 24.6 30.5 33.5 30.1 28.2 28.2

Cash Conversion Cycle 44.7 51.7 43.7 62.7 58.1 46.5 44.4 39.7
(days)

Fixed Assets turnover (x) 7.4 7.0 6.5 4.8 4.8 4.5 4.3 4.5

                 

Financial Stability Ratios (x)

Debt-equity 1.61 0.86 0.29 0.53 0.46 0.39 0.32 0.27

Current ratio 1.12 1.11 1.12 1.03 1.02 1.08 1.20 1.35

Interest coverage 2.55 5.51 18.51 10.71 9.30 12.29 15.25 17.35

                 

Growth Ratios

Net Sales growth (%) 17% 12% 7% -16% 17% 16% 14% 14%

PAT growth (%) 99% 85% 58% -21% -15% 36% 26% 15%

                 

Valuation Ratios

Price to earnings (x) 42.6 19.8 13.0 16.1 18.9 13.9 11.0 9.6

Price to book value (x) 11.3 8.5 5.9 4.3 3.7 3.1 2.6 2.2

Price to sales (x) 1.2 1.1 1.0 1.2 1.1 0.9 0.8 0.7

*Based on FY17 figures

Performance Review
This is as per the closing prices for the stocks as on 25th September.

The stock of SP Apparels has gained in the last one month and is now trading at the price at which we had
originally recommended the stock. Our maximum Buy price for the stock is Rs 460. Thus, we maintain BUY view
on the stock of SP Apparels.

Our view on the stock of TCPL Packaging Ltd remains a HOLD considering the steep run-up in its prices post our
recommendation. Please note the maximum Buy price for the company is Rs 600.

The stock of Ador Fontech Ltd has gained a bit in the last one month. The maximum Buy price for the company is
Rs 100. Given the current price, we maintain our BUY view on the stock of Ador Fontech.

Mayur Uniquoters has also gained since we recommended the stock last month. The maximum Buy price for this

21 of 25
 stock is Rs 400. Thus, we maintain BUY view on the stock of Mayur Uniquoters.

The performance review of our open positions table is mentioned below:

Summary of Open Positions for Smart Money Secrets as on 25th September 2017

SP Apparels Ltd 03-Jun-17 Buy 420 766 384 -9% Buy 100%

TCPL Packaging 23-Jun-17 Buy 521 1,100 625 20% Hold 76%
Ltd

Ador Fontech Ltd 27-Jul-17 Buy 95 169 100 6% Buy 68%

Mayur Uniquoters 21-Aug-17 Buy 338 673 362 7% Buy 86%

Ltd

TVS Srichakra Ltd 25-Sep-17 Buy 3,127 4,934 3,127 0% Buy 58%

Kunal Thanvi (Research Analyst), Managing Editor,Smart Money Secrets, a member

of the Institute of Chartered Accountants and the Companies Secretaries of India. He
started his career with a PMS as a buy-side analyst. He is a balance sheet driven
analyst who loves niche businesses with competitive advantages.

He practices value investing based on Ben Graham's principles of 'Margin of Safety'

and 'Mr Market'. He is an avid reader who believes it's better to learn vicariously than
the hard way.

Where Smart Money Secrets Fits In...

Our team will focus primarily in the mid and small cap domain. Having said that, we will remain market-cap agnostic towards
mispriced opportunities that the markets may present to us.

Market participants must note that stock markets tend to be very volatile. Mid and Small cap stocks are inherently riskier
compared to large blue-chip stocks. On the brighter side, they present a huge growth potential. It is not unusual for a good small
and mid-cap stock to turn a multibagger in a short period of time. But on the flipside, there is a considerable risk attached. And
putting too much money in a single stock or sector can be very risky.

According to us, in a scenario of ideal allocation of funds, predominantly mid and small-cap stocks could be considered to
comprise of not more than 30-40% of your total equity portfolio. Further, we believe a single small cap stock should not form more
than 2-3% of the total portfolio. Please note that this allocation will vary from person to person. For something that works best for
you, we recommend you talk to your investment advisor.

Frequently Asked Questions

To enhance your experience of using Smart Money Secrets and to ensure that this journey is smooth for you we have compiled a list
of Frequently Asked Questions.

DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014

INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint
venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research
Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:

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 An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment
opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:

For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:

a. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report.
b. Equitymaster has financial interest in TVS Srichakra Limited.
c. Equitymaster's investment in the subject company is as per the guidelines prescribed by the Board of Directors of the Company. The investment is however made
solely for building track record of its services.
d. Equitymaster's Associates and Research Analyst or his/her relative doesn't have any financial interest in the subject company.
e. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject
company at the end of the month immediately preceding the date of publication of the research report.
f. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research
report.

DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:

a. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
b. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
c. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject
company in the past twelve months.
d. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or
brokerage services from the subject company in the past twelve months.
e. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the
research report.

GENERAL DISCLOSURES:

a. The Research Analyst has not served as an officer, director or employee of the subject company.
b. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.

Definitions of Terms Used:

a. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective
of the recommendation service.
b. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock
at current market price.
c. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive
valuations keeping in mind the tenure and the objective of the service.
d. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the
recommendation service.

Feedback:

If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

MORE ON TVS SRICHAKRA MORE SMART MONEY SECRETS

TVS Srichakra Mayur Uniquoters: Short term Dust Settled.

(ValuePro) Exports and Expansion to trigger the Growth!
Oct 3, 2016 (Quarterly Results Update - Detailed)
Aug 31, 2017
This tyre company with its specialised focus has
been able to get over the commodity hangover and Exports and PU plant to drive future growth and
generate good returns profitability.

TVS Srichakra: Flying like an Eagle. 70% up in TCPL Packaging Ltd: Tough Quarter, Multiple
less than 3 months. What Next? Trigger Ahead!

23 of 25
 (The India Letter Special Report) (Quarterly Results Update - Detailed)
Sep 30, 2016 Aug 28, 2017

What does the 70% run up in the stock price of TVS These short-term hiccups will yield in the favour of
Srichakra mean for subscribers? efficient-organised players in the long term.

TVS Srichakra SP Apparels: Brexit Hampers Sales Growth

(The India Letter) (Quarterly Results Update - Detailed)
Jul 20, 2016 Aug 28, 2017

The India Letter recommendation for the month of Currency fluctuations and recession in the UK
July 2016. dampened the company's performance during this
quarter.
More Views on News     Recommended Reading

Mayur Uniquoters Ltd.

(Smart Money Secrets)
Aug 22, 2017

Smart Money Secrets recommendation report for

the month of August 2017.

Ador Fontech Ltd.

(Smart Money Secrets)
Jul 27, 2017

Smart Money Secrets recommendation report for

the month of July 2017.

More Views on News     Recommended Reading

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