Smallcap stock jumps 7% after securing contract from Daimler India to manage warehouse operations

Synopsis: TVS Supply Chain Solutions has won a three-year contract from Daimler India Commercial Vehicles to manage in-plant warehouse operations at its Chennai manufacturing facility, highlighting TVS SCS’s role in handling large, complex logistics operations for global auto players

The shares of this small-cap company, which is majorly engaged in providing supply chain management services for international organizations, government departments and many more, jumped upto 7 percent after securing a significant deal supporting revenue growth over 3 years.

With the market capitalisation of Rs. 4963 Crores, the shares of TVS Supply Chain Solutions has reached an intraday high of Rs. 114 per share, rising nearly 7 percent from its previous day close of Rs. 106.22 and is trading at P/E of  41.9 whereas industry P/E stands at 24

NEWS

TVS Supply Chain Solutions has won a three-year contract from Daimler India Commercial Vehicles to manage in-plant warehouse operations at its Chennai manufacturing facility, marking an important addition to its order book.  Under this agreement, TVS Supply Chain will handle the complete flow of components inside the plant, from storage to movement, to ensure smooth production with fewer delays and better inventory control. Around 700 employees will be deployed for this project, showing the scale and long-term nature of the engagement.

 The company will use technology such as real-time tracking, automation, and data-based planning tools to reduce manual work and improve day-to-day efficiency on the shop floor. This contract also strengthens TVS Supply Chain’s long-standing relationship with Daimler and highlights its growing role as a trusted partner for large automotive manufacturers in managing critical factory operations. 

Financials

TVS Supply Chain Solutions is part of the TVS Mobility Group and was earlier promoted by the TVS Group. It is an India-based company that played an early role in building the supply chain services space in the country. TVS Supply Chain Solutions serves companies across many sectors, including automotive, industrial goods, consumer products, technology and infrastructure, railways, utilities, and healthcare.

Industrial sector, Automotive sector and Tech & Tech Infra contribute 29.14 percent, 24.93 percent and 12.82 percent respectively whereas consumer, Rail and Utilities and Healthcare sectors contribute 12.75 percent, 7.89 percent and 2 percent respectively. 

The company continues to see strong momentum, with an active business pipeline of Rs. 6,200 crore and healthy new wins worth 8.1 percent of Q2 FY25 revenue, reflecting sustained customer confidence. Backed by strict execution and cost discipline, the company remains on track to achieve its medium-term target of 4 percent PBT by Q4 FY27, while operating a large network of 19.9 million sq ft of warehouse space and a workforce of 13,012 permanent employees, strengthening its long-term growth platform. 

Year on Year Analysis: Revenue from Operations has increased from Rs. 2513 Crores to 2663 Crores, up 6 percent. Operating profit has decreased from Rs. 190 Crore to Rs. 182 Crore, down 4.2  percent and net profit has increased from Rs. 11 Crore to Rs. 16 Crore, up 45 percent.

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