Fastest Growing Companies 2015

Fastest Growing Companies 2015 - list 6

In a year that was challenging, Outlook Business takes a look at companies that weathered the storm

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Published 5 years ago on Jan 22, 2016 5 minutes Read

31 TVS Srichakra

 

 




Part of the TVS Group, TVS Srichakra is the leader in the two- and three-wheeler domestic OEM tyre market and the No.3 in the after-market segment. It manufactures a wide range of two- and three-wheeler tyres and off-road tyres. The company has two manufacturing plants and a network of 3,000 dealers. About 57% of its revenue comes from OEM sales, while 30% comes from the replacement market and 13% comes from exports. TVS Srichakra has managed to grow faster than the overall industry, as its larger clients like Honda too managed to better industry growth. With rubber prices likely to remain soft and interest cost likely to stay lower, the company will probably improve its profitability. While revenue growth is expected to be around 12% over the next two years, net profit growth is expected to be higher at 22%, helped by better cost-management, lower interest cost and benign rubber price. The stock currently trades at 14x its estimated FY16 earnings.

 

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