What Is TVS Supply Chain Solutions and How Did It Begin?
TVS Supply Chain Solutions Ltd. (TVS SCS), part of the TVS Group, is a global integrated supply chain and logistics provider headquartered in Chennai. The company was initially incorporated in 2004 and evolved significantly from its earlier avatar, TVS Logistics Services, to its current brand in 2019. It caters to a broad range of industries including automotive, industrial, utilities, defense, and consumer goods across India, Europe, the UK, and the USA.
TVS Supply Chain debuted on the Indian stock exchanges on August 23, 2023, with a listing price of ₹206.30—a 4.7% premium over its IPO issue price of ₹197. Since then, the stock has seen considerable volatility, trading today (as of May 12, 2025) at ₹119.
Source: Economic Times
What Are the Latest Financials of TVS Supply Chain Solutions?
As of May 2025:
- Market Cap: ₹5,230 Cr
- Current Price: ₹119
- Book Value: ₹42.1
- ROCE: 4.74%
- ROE: -7.39%
- Dividend Yield: 0%
- 52-Week High/Low: ₹218/₹107
Despite a decent topline of ₹2444.62 crore in quarterly revenue, the company posted a net loss of ₹-23.80 crore, reflecting operational challenges. ROE is in negative territory, indicating value erosion for shareholders.
Source: Screener.in snapshot, May 2025
How Does TVS Supply Chain Compare to Its Peers?
Here’s a comparative view of TVS SCS vs. other logistics players:
| Company | CMP (₹) | P/E | Market Cap (₹ Cr) | ROCE (%) | ROE (%) | Quarterly Sales (₹ Cr) | Quarterly Profit (₹ Cr) |
|---|---|---|---|---|---|---|---|
| Container Corp. | 682.40 | 31.24 | 41,578.23 | 13.93 | NA | 2208.31 | 367.28 |
| Delhivery | 306.70 | 559.58 | 22,871.62 | -1.73 | NA | 2378.30 | 24.99 |
| Transport Corp. | 1113.75 | 21.58 | 8,680.85 | 19.92 | NA | 1147.10 | 102.10 |
| Zinka Logistics | 428.25 | NA | 7,632.42 | -32.33 | NA | 113.98 | -48.03 |
| TVS Supply | 119.00 | NA | 5,230.00 | 4.74 | -7.39 | 2444.62 | -23.80 |
| VRL Logistics | 490.45 | 32.93 | 4,289.89 | 10.70 | NA | 825.22 | 59.42 |
| Gateway Distriparks | 62.00 | 12.98 | 3,097.78 | 12.84 | NA | 402.52 | 455.52 |
Compared to peers, TVS SCS lags in profitability and return ratios. Players like Transport Corp. and Gateway Distriparks have higher ROCE and solid profitability, making the competition intense.
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What Services and Sectors Does TVS Supply Operate In?
TVS Supply runs a dual-segment model:
Integrated Supply Chain Solutions (ISCS):
- In-plant logistics
- Sourcing & procurement
- Finished goods & aftermarket fulfillment
- Supply chain consulting
Network Solutions (NS):
- Global freight forwarding
- Final mile delivery
Its service footprint covers multiple industries: automotive, FMCG, defense, utilities, e-commerce, tech infrastructure, telecom, and healthcare.
Source: TVS SCS Official Website
Who Are Its Clients and What Strategic Moves Has It Made Recently?
The company services over 100 marquee clients, including Fortune 500 brands. One of its standout moves was a strategic partnership signed with Daimler Truck South East Asia in June 2024. The deal spans 16 Asia-Pacific countries and enhances its automotive and component logistics footprint.
Other initiatives:
- Investment in AI and ML for route optimization and warehouse planning.
- Appointment of R. Vaidhyanathan as new Global CFO in March 2025.
Sources: TVS SCS Newsroom
What Challenges Is the Company Currently Facing?
- Profitability pressure: With a net loss of ₹-23.80 Cr in the latest quarter, margins remain a concern.
- Negative ROE: Indicates that the company isn’t able to generate sufficient returns on shareholder equity.
- Highly competitive sector: Logistics is fragmented with entrenched players like Container Corp and tech-enabled firms like Delhivery.
What’s the Outlook for the Logistics Sector?
India’s logistics market is projected to reach \$380 billion by 2025, driven by e-commerce, D2C brands, government infra push (Gati Shakti, PM Gati Shakti), and digital transformation. Companies investing in automation, route analytics, and multi-modal transport stand to benefit.
TVS SCS fits into this narrative, given its AI and digital transformation initiatives, but profitability needs to catch up.
Source: Invest India Report
What Are Analysts Saying About the Stock?
- MarketScreener Consensus: “Underperform”
- Target Price: ₹138 (implying mild upside from current levels)
Source: MarketScreener
Final Thoughts
TVS Supply Chain Solutions has scale, a legacy brand, global presence, and an ambitious digital-first strategy. However, it faces mounting pressure to convert topline strength into bottom-line gains. As an investor, staying updated on quarterly margins, technology adoption, and customer acquisition will be key to tracking its performance.
This article is strictly informational and does not constitute financial advice or stock recommendations.
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