Shares of TVS Supply Chain Solutions saw a significant surge of 9% on February 18, 2025, following a stake acquisition by TVS Motor Company via a block deal on Monday, February 17.
🚀 Key Highlights:
- TVS Supply Chain stock surged up to 9% intraday
- TVS Motor Company acquired 20 lakh shares via a block deal
- Additional stake purchase worth ₹107 crore last week
- TVS Motor’s total holding in TVS Supply Chain increased to 3.91%
This strategic move reflects TVS Motor’s increased confidence in the supply chain business and its long-term growth potential.
TVS Motor’s Stake Acquisition in TVS Supply Chain Solutions
Recent Block Deal Transaction
📌 On February 17, 2025, TVS Motor Company acquired 20 lakh shares of TVS Supply Chain Solutions through a block deal on the National Stock Exchange (NSE).
- Selling Entity: Allanzers Fin
- Shares Offloaded: 20 lakh shares
- Purchase Price: ₹128.86 per share
- Buying Entity: TVS Motor Company
- Transaction Type: Block Deal
This strategic acquisition by TVS Motor indicates its commitment to strengthening its presence in the logistics and supply chain industry.
Previous Stake Purchase on February 13
📅 Just last week, on February 13, 2025, TVS Motor had acquired 67.10 lakh shares of TVS Supply Chain Solutions in an open market transaction worth ₹107 crore.
✔ Number of Shares Purchased: 67.10 lakh shares
✔ Percentage of Stake Acquired: 1.52%
✔ Acquisition Price: ₹159.42 per share
✔ Total Transaction Value: ₹106.97 crore
After this acquisition, TVS Motor’s total holding in TVS Supply Chain Solutions increased from 2.39% to 3.91%.
📊 Current Holding of TVS Motor in TVS Supply Chain Solutions: 3.91%
TVS Motor’s aggressive accumulation of shares highlights its confidence in the company’s long-term growth prospects despite its recent financial losses.
Market Reaction: TVS Supply Chain Share Price Performance
📈 Stock Movement on February 18, 2025:
- Opening Price: ₹130.50
- Intraday High: ₹136.75
- Intraday Low: ₹127.90
- Last Traded Price: ₹136.75 (+7.34%)
TVS Supply Chain Solutions’ stock surged up to 9% intraday before settling at ₹136.75 per share, marking a 7.34% gain on the NSE.
📌 Factors Driving the Rally:
✅ TVS Motor’s strategic stake acquisition
✅ Investor confidence in long-term business potential
✅ Momentum from recent stake purchases by TVS Motor
Despite short-term financial challenges, investors see growth potential in TVS Supply Chain’s operations, leading to positive market sentiment.
TVS Supply Chain’s Q3 Financial Performance
Revenue Growth
📊 Total Revenue in Q3 FY25: ₹2,444.6 crore
📊 Revenue in Q3 FY24: ₹2,221.8 crore
📊 YoY Growth: +10%
✅ TVS Supply Chain reported a 10% increase in revenue in the December 2024 quarter compared to the previous year, showcasing steady demand and business expansion.
Net Loss and Profitability Trends
📉 Net Profit/Loss in Q3 FY25: ₹(23.8) crore (Net Loss)
📉 Net Profit in Q3 FY24: ₹10 crore
Despite revenue growth, the company reported a net loss of ₹23.8 crore, compared to a ₹10 crore profit in the same period last year.
🔎 Reasons for Net Loss:
- Increased operational costs
- Higher investments in business expansion
- Competitive pricing pressures in the logistics industry
📉 EBITDA and Margins
- EBITDA in Q3 FY25: ₹132.6 crore
- EBITDA in Q3 FY24: ₹162.1 crore
- EBITDA Margin Q3 FY25: 5.4%
- EBITDA Margin Q3 FY24: 7.3%
📌 Declining EBITDA margins indicate higher operating costs and lower profitability in the current quarter. However, with strong strategic investments, the company aims to improve margins in the long run.
About TVS Supply Chain Solutions
📦 TVS Supply Chain Solutions is a part of TVS Mobility Group and is one of India’s leading integrated supply chain solutions providers.
📍 Company Overview:
- Founded by TVS Group
- Leading player in outsourced logistics and supply chain management
- Operates in multiple industries including automotive, retail, and industrial sectors
- Presence in domestic and international markets
🌍 TVS Supply Chain is expanding its global footprint, leveraging the rising demand for efficient logistics solutions.
Future Outlook and Growth Potential
🔮 Growth Drivers for TVS Supply Chain Solutions:
✔ Industry Growth: Rising demand for organized logistics and supply chain solutions
✔ Government Policies: Supportive infrastructure investments and logistics sector reforms
✔ Technology Integration: Expansion in AI, IoT, and automation-driven logistics
✔ Strategic Investments: TVS Motor’s increased stake signals long-term confidence
📌 Challenges to Watch:
⚠ Short-term profitability concerns due to higher costs
⚠ Competitive pricing pressure in the logistics industry
⚠ Macroeconomic factors affecting demand and supply chain disruptions
🚀 However, TVS Supply Chain is well-positioned for long-term growth with the backing of TVS Motor and continued expansion in global logistics operations.
Conclusion
📢 TVS Supply Chain Solutions saw a sharp surge in stock price following TVS Motor’s stake acquisition.
💡 Key Takeaways:
- TVS Motor acquired additional shares via block deal
- Stock surged up to 9% intraday
- Revenue grew 10%, but company reported a net loss
- TVS Supply Chain is positioned for long-term growth despite short-term profitability concerns
📌 With TVS Motor’s continued investment, the logistics company is poised for expansion in India’s rapidly growing supply chain and logistics sector.
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