TVS Supply Chain shares rise nearly 8% after TVS Motor Company buys 0.45% stake via block deal for ₹25 crore

TVS Supply Chain Solutions shares saw a sharp surge of nearly 8 per cent in intra-day trading on Tuesday, February 18, 2025, following a fresh stake acquisition by TVS Motor Company via a block deal. The stock rallied to an intra-day high of ₹137.20, gaining momentum after the announcement.

According to National Stock Exchange (NSE) block deal data, TVS Motor Company acquired 20 lakh shares of TVS Supply Chain Solutions at ₹128.86 per share on February 17, 2025. The transaction was valued at ₹25 crore. The shares were offloaded by Allanzers Fin, which reduced its holding by 0.45 per cent.

This marks the second recent stake purchase by TVS Motor in TVS Supply Chain Solutions. On February 13, 2025, the company had acquired 67.10 lakh shares, amounting to a 1.52 per cent stake, for ₹107 crore via an open market transaction. The shares were purchased at an average price of ₹159.42 per share. Meanwhile, Authum Investment & Infrastructure divested a 1.13 per cent stake for ₹80 crore during the same period.

Following these transactions, TVS Motor Company's total stake in TVS Supply Chain Solutions, promoted by R. Dinesh, increased to 4.36 per cent from 2.39 per cent (as of December 2024). As per the December 2024 shareholding pattern, promoters and promoter groups collectively held a 43.04 per cent stake in the company, while public shareholders controlled 56.96 per cent.

Financial Performance in Q3FY25

TVS Supply Chain Solutions' financial performance for the quarter ended December 2024 (Q3FY25) was disappointing as the company posted a net loss of ₹23.8 crore, compared with a profit of ₹10 crore in the same period a year ago.

Revenue, however, increased by 10 per cent year-on-year (YoY) to ₹2,444.6 crore, compared to ₹2,221.8 crore in Q3FY24. The earnings before interest, tax, depreciation, and amortization (EBITDA) stood at ₹132.6 crore, down from ₹162.1 crore in the previous year. Consequently, the EBITDA margin narrowed to 5.4 per cent from 7.3 per cent in the year-ago quarter.

The company attributed the revenue and volume slowdown to ongoing global macroeconomic uncertainties, which have affected its operations and financial performance.

Stock Price Trends and Market Performance

TVS Supply Chain Solutions' stock climbed as much as 7.7 per cent in intra-day trading, hitting ₹137.20 at its peak on Tuesday. However, the stock remains significantly below its all-time high of ₹217.35, which was recorded in September 2024. Despite the recent recovery, it is still down by approximately 37 per cent from its peak.

Over the last one year, the stock has declined by 30 per cent. In February 2025 alone, the scrip has fallen by more than 3 per cent, following a sharp 20 per cent correction in January. However, the stock has rebounded by about 10 per cent from its 52-week low of ₹125.30, which was recorded on February 12, 2025.

TVS Supply Chain Solutions, a part of the renowned TVS Group, specialises in providing end-to-end logistics and supply chain management services. The company serves both global and domestic clients across diverse industries, including automotive, consumer electronics, pharmaceuticals, engineering, and retail. Its integrated supply chain solutions and extensive logistics expertise position it as a key player in the sector.

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