TVS Electronic Gains from Cashless India Movement

After the Demonetization move by Indian Prime Minister

Narendra Modi, first week of December saw a nationwide
campaign of less cash to cashless. A recent report by Google
India and Boston Consulting Group proved that about
75 percent of transactions in India were cash-based as of last
year. Cash is a clear winner; more so because 80 percent of
people dont have access to the internet. A feasible
infrastructure needs to be in place in order to aid online
transactions. And that doesnt just happen through the
government alone, but also depends on companies that strive to educate the next billion and
guide the ship. The growing shortage of physical cash in circulation have started affecting
small businesses negatively, slowing down the purchasing and producing capacity, which is
bound to have a ripple effect on society. In fact, early implications of this are already visible
around.

TVS Electronics gain:

The next important thing for a better working cashless India apart from Educating the
population is an infrastructure. TVS Electronic is the only company that manufactures
cashless payment machines. The cashless payment drive has benefitted TVS Electronics in a
massive way. Since December 8th, TVS Electronics share price has gained approximately
21% till the 12th December trade. Today, TVS Electronics traded at the new lifetime high
value for three straight trading sessions. Today, the stock traded at the new lifetime high of
Rs. 231.90. Since 22nd November 2016, TVS Electronics share price has gained immensely.
The stock has risen over 138% from Rs. 89.90 on 22 nd November to Rs. 214.10 on 13th
December.

About TVS Electronics:

TVS Electronics is a part of the TVS Group, Indias leading and well recognized self-owned
Business group. It is headquartered in Chennai and was founded in 1986 as an IT Peripherals
manufacture. Today the company has today transformed into a leading Transaction
Automation IT Product manufacturer & service provider.

Sales
Total
Expenditure
Operating Profit
Interest
Tax
PAT
EPS

Q2 FY17
721.16

Q1FY17 Q2FY16
108.9
192.47

718.37
2.79
0.72
0.09
2.16
1.16

110.47
-1.57
0.66
-2.01
-1.08

Current Ratio
Quick Ratio
Dividend Yield
Interest Coverage Ratio
Debt Equity Ratio
Return On Asset
Return On Equity

1.48
0.97
0
3.29
0.68
2.12
9.6

189.59
2.88
1.61
0.38
1.35
0.75

The company has posted a significant rise in its

Q2 results for the ongoing financial year. The
sales have gone up 562% QoQ and 274% YoY.
The company has also posted a higher net profit
in the September Quarter for the ongoing
financial year. TVS Electronics have posted the
profit of Rs. 2.16 crores in Q2FY17 as
compared to the loss of Rs. 2.01 crores in the
June quarter and the profit of Rs. 1.35 crores in
the Q2FY16.

The key ratios convey that the company has not paid
out any dividends and has good financial leverages.
TVS Electronics has a good debt-equity ratio as well.
The stock has witnessed the highest traded quantity
yesterday of approximately 29 lakh at the low of Rs.
198.05 while the highest deliverable quantity for the
month was seen at the low of Rs. 186 on 9th December
2016.

Conclusion:
The movement of the stock leaves no doubt that the Cashless India campaign has benefitted
TVS Electronics massively. The company has gained and so has the stock since the
demonetization for it is the only one that makes the cashless payment device. TVS
Electronics is the top 500 recommendation for the quarter by Dynamic Levels website.

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research
team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Disclosure
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penalty on for certain operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research Analyst/
his Relative:

Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other benefits from the
subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by
Tanaya Nath