TVS Supply Chain Shares Surge 7% After TVS Motor’s Block Deal Stake Acquisition
Introduction:
TVS Supply Chain Solutions noticed a amazing surge of 7.Three% in its share charge on February 18, 2025, as investor sentiment became buoyed through a strategic move from its discern company, TVS Motor Company. The stock rose to an intraday high of Rs 136.Eight in step with proportion on the BSE, following the news that TVS Motor had acquired 20,00,000 stocks at Rs 128.86 each via a block deal. This buy highlights TVS Motor’s self belief in its deliver chain arm, which has seen some turbulence in its monetary performance these days.
By 9:23 AM, TVS Supply Chain shares were trading at Rs 136.05, up 6.79% from the previous session. In comparison, the broader market showed some weakness with the BSE Sensex down 0.10% at 75,917.96. TVS Supply Chain’s market capitalization stood at Rs 5,990.99 crore, with its stock fluctuating between a 52-week high of Rs 217.35 and a low of Rs 125.3.
The block deal saw TVS Motor acquiring the stake from Allanzers Fin Net, who sold 20 lakh shares at the aforementioned price. This investment comes at a time when the logistics firm is navigating challenges in its financial performance. TVS Supply Chain Solutions reported a net loss of Rs 23.8 crore in Q3 FY24,
compared to a profit of Rs 10 crore in the same period the previous year. Despite the loss, the company saw a 10% increase in quarterly revenue, which rose to Rs 2,444.6 crore from Rs 2,221.8 crore in Q3 FY23.
TVS Supply Chain Shares Soar 7% After TVS Motor’s Strategic Stake Acquisition:
However, the company’s EBITDA margin contracted, with a drop from 7.3% to 5.4%, and its EBITDA for the quarter stood at Rs 132.6 crore, down from Rs 162.1 crore a year ago. TVS Supply Chain also cited global macroeconomic uncertainties that had a negative impact on its revenues and volumes for FY24.
As a leading player in logistics and supply chain management, TVS Supply Chain provides integrated solutions spanning procurement, warehousing, transportation, distribution, inventory management, and demand forecasting. Its extensive infrastructure, including a large network of warehouses and distribution centers,
enables it to serve a wide range of industries, including automotive, pharmaceuticals, consumer electronics, and retail.
Despite the recent uptick, TVS Supply’s stock has struggled over the past year, losing 33% of its value while the Sensex has risen by 4.5%. However, the positive price movement in response to TVS Motor’s investment suggests investor optimism for the company’s recovery as the broader macroeconomic environment stabilizes.
Conclusion:
while TVS Supply Chain is currently facing challenges, the backing from its parent company is a vote of confidence that could pave the way for future growth. The market’s reaction today highlights that investors are keenly watching for improvements in the company’s performance in the coming quarters.
FAQ:
1. Why did TVS Supply Chain Solutions’ stock rise today?
TVS Supply Chain’s stock surged by 7.3% on February 18, 2025, after TVS Motor Company bought 20,00,000 shares of the company in a block deal. The purchase was made at Rs 128.86 per share, signaling confidence in the company’s future despite recent financial setbacks.
2. What is a block deal?
A block deal refers to the sale or purchase of a large number of shares, typically over 0.5% of a company’s total equity, in a single transaction. Block deals are often done privately and can influence the stock price due to the scale of the transaction.
3. How did TVS Supply Chain perform financially in Q3 FY24?
TVS Supply Chain reported a net loss of Rs 23.8 crore in Q3 FY24, compared to a profit of Rs 10 crore in the same quarter last year. Despite this, the company saw a 10% rise in revenue, reaching Rs 2,444.6 crore, up from Rs 2,221.8 crore a year ago.
4. What is the reason behind the decline in TVS Supply Chain’s profits?
TVS Supply Chain attributed the decline in profits to various global macroeconomic uncertainties that affected its revenues and volumes during FY24. These uncertainties impacted the company’s overall financial performance despite increased revenue.
5. How did TVS Supply Chain’s EBITDA perform in Q3 FY24?
TVS Supply Chain reported an EBITDA of Rs 132.6 crore for Q3 FY24, down from Rs 162.1 crore in Q3 FY23. The EBITDA margin also contracted, standing at 5.4% compared to 7.3% in the previous year.
6. What industries does TVS Supply Chain serve?
TVS Supply Chain provides integrated supply chain solutions to a range of industries, including automotive, consumer electronics, pharmaceuticals, engineering, and retail. Their services include procurement, warehousing, transportation, distribution, inventory management, and demand forecasting.
7. How has TVS Supply Chain performed over the past year?
Over the past year, TVS Supply Chain shares have lost 33% of their value, while the BSE Sensex has gained 4.5%. Despite the stock’s struggles, the recent surge following TVS Motor’s investment indicates some positive market sentiment.
8. What impact did TVS Motor’s investment have on TVS Supply Chain’s stock price?
TVS Motor’s purchase of a significant stake in TVS Supply Chain led to a sharp rise in the company’s share price, signaling investor optimism that the backing from its parent company could lead to better performance in the future.
9. What is the market capitalization of TVS Supply Chain?
As of February 18, 2025, the market capitalization of TVS Supply Chain Solutions stood at Rs 5,990.99 crore.
10. What services does TVS Supply Chain offer?
TVS Supply Chain offers end-to-end logistics and supply chain management services, including procurement, warehousing, transportation, distribution, inventory management, and demand forecasting. They manage both domestic and international logistics for various industries.
11. What was the 52-week high and low for TVS Supply Chain’s stock?
The 52-week high for TVS Supply Chain stock was Rs 217.35 per share, while the 52-week low was Rs 125.3 per share.
Disclaimer
The information provided on www.Barawakar.com is for informational purposes only and does not constitute financial advice. Stock trading is inherently risky, and users agree to assume full responsibility for their trading decisions, including any loss of capital. While we strive for accuracy, we do not guarantee the completeness or reliability of the information presented.
Users should conduct their own research and consult with a qualified financial advisor before making any investment decisions. www.Barawakar.com disclaims all warranties and is not liable for any damages arising from the use of this website. By using this site, you agree to these terms.
For any question, please contact us