Big Dividend of Rs. 93 + Stock Reversal After 48% Fall—Is TVS Holdings The Perfect Buy Before Record Date?

Based in Chennai, TVS Holdings Ltd. is an Indian automotive components firm that was originally known as Sundaram-Clayton Ltd. It produces magnesium and aluminum castings for the automotive sector and is a member of the TVS Group. Following the Board's announcement of a huge interim dividend of Rs. 93 for FY25, TVS Holdings' shares finished Tuesday's trading session on the BSE 0.23% down at Rs 8928.25 per share, with a market capitalization of Rs 18,063.71 Cr.

TVS Holdings Dividend

"In furtherance to our intimation dated 17th March 2025, we wish to inform that the Board of Directors of the Company through circular resolution today, declared an interim dividend of Rs. 93/- per share (1,860%) on 2,02,32,104 equity shares of Rs.5/- each fully paid up, absorbing a sum of Rs.188 Cr, for the financial year ending 31st March 2025. Further we wish to inform that pursuant to Regulation 42 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the record date for the purpose of interim dividend will be 28th March 2025. The interim dividend declared will be paid to those shareholders, who hold shares in physical form and / or in electronic form and whose names appear in the Register of Members and / or Depositories respectively, as at the close of working hours on 28th March 2025, being the Record Date fixed by the Company for this purpose. The dividend payment will be made within a period of 30 days from the declaration of interim dividend, as provided in the Companies Act, 2013," said TVS Holdings in a stock exchange filing.

TVS Holdings Financials

According to Moneycontrol, the company's consolidated net sales for the quarter ending in December 2024 were Rs 11,458.91 crore, rising 14.63% from Rs 9,996.37 crore in the quarter ending in December 2023. Its net profit improved 72.12% from Rs. 224.29 crore in the December 2023 quarter to Rs. 386.04 crore in the December 2024 quarter. EBITDA jumped 19.57% from Rs. 1,560.17 crore in Q3FY24 to Rs. 1,865.54 crore in Q3FY25.

TVS Holdings Share Price Target

"TVSHLTD is currently trading at ₹8,949.05, showing potential signs of reversal from lower levels after a significant decline. The stock has corrected nearly 48% from its peak and has started recovering, indicating renewed buying interest. On the daily timeframe, the stock has moved above its short-term (20-day) EMA and is trading near its medium-term (50-day) EMA. A decisive breakout above this level could further propel the stock towards its long-term (200-day) EMA, strengthening the bullish outlook. The Relative Strength Index (RSI) is at 59.61, showing a pause at current levels, which suggests the possibility of either a time-wise or price-wise correction before further upward movement," said Hardik Matalia - Derivative Analyst at Choice Broking.

"If the stock manages to sustain above ₹9,500, it could confirm bullish momentum and open the doors for an upside move towards the ₹10,500-₹11,000 range in the near term. However, failure to hold above these resistance levels may result in further consolidation or a retest of lower support levels. For short-term traders, a sustained move above ₹9,500 would serve as an ideal entry point, confirming strength and buying interest. Until then, waiting for a decisive breakout is advisable to avoid premature entries," the analyst added.

"Long-term investors may consider partial accumulation near ₹8,900-₹8,500, as a successful breakout above key resistance could lead to a strong trend reversal. Additionally, if the stock declines further and breaks below recent lows, investors can add more on dips, considering its long-term growth potential. However, close monitoring of price action and volume trends will be essential to confirm sustained buying interest," Hardik Matalia further recommended.

"The price action in TVS holding shows that a long-term downtrend is the current structure in this counter. The rally in last two weeks seems to be a corrective decline within the ongoing downtrend. Major support zone for the price is at 8040-8000 any break below this price zone can lead to further decline to 7560 and below that to 7250. One should observe the price for the time being and buy only if the price shows a major trend reversal signal. Price action movement suggests avoid buying into this counter for some more time," Manish Shah, a SEBI registered Investment Advisor recommended.

"TVS Holdings stock price is bearish on the Daily charts with strong resistance at 9128. A Daily close below support of 8810 could lead to a target of 8238 in the near term," A R Ramachandran, Independent Research Analyst stated.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.