TVS Electronics up 18% on heavy volumes, hits 52-week high in weak market

Shares of TVS Electronics hit a 52-week high of Rs 344.6, surging 18 per cent on the BSE in Wednesday’s intra-day trade, supported by heavy volumes in an otherwise weak market.

The stock of computers hardware & equipments company surpassed its previous high of Rs 333, touched on September 2, 2022. Average trading volumes on the counter jumped eight-fold today with a combined 1.36 million shares, representing 7 per cent of total equity of TVS Electronics, having changed hands on the NSE and BSE till 01:43 PM. In comparison, the S&P BSE Sensex was down 0.73 per cent at 60,847.

TVS Electronics Limited (TVS-E) is one of the frontrunners and most renowned players in the IT peripherals and consumer electronics market. Under the purview of Products & Solutions Group (PSG), the company designs, manufactures, assembles, markets, sells and services various products such as Dot Matrix Printers, Thermal Receipt Printers, Label Printers, Mobile Printers, Mechanical Keyboards, Membrane Keyboards, Mouse, Barcode Scanners, Currency Counters, Surveillance Camera, Touch POS Systems, Handheld Devices, and Electronic Cash Registers among others.

Under the purview of Customer Support Services (CSS) business, the company provides customer support service catering to both OEMs and end customer services. These services include break fix, repair engineering, installation, demo, protection plans, IT infra management, remote tech support, call centre services, and e-waste management, among others.

TVS Electronics said the PSG segment is expected to continue to remain on its growth trajectory on the back of focus of the company on providing bundled offers of solutions along with products, and tapping into new emerging opportunities in electric vehicles and rooftop solar power sector. Further, on the back of increasing customer visibility, the B2C business is expected to drive the growth of CSS vertical for the Company in the near future.

Meanwhile, under the (PLI) scheme for IT Hardware Products, the Ministry of Electronics and Information Technology has approved 14 qualified applicants. To manufacture these products in India, the government will offer incentives of $983.76 million over the next four years. In this duration, production worth $21.62 billion and exports of $8.06 billion are expected.

Ministry of Electronics & Information Technology (MeitY) has announced ‘Scheme for Promotion of Semiconductor Eco-System’ in India with a massive outlay of Rs 76,000 crore ($9.48 billion) in 2022. As per Union Budget 2022-23, the Ministry of Electronics and Information Technology (MeitY) had been allocated Rs 14,300 crore ($1.85 billion).

The Electronics Industry is one of the largest and fastest growing industries in the world. Electronic products continue to impact and shape the lifestyle prominently in today’s digital era.

TVS Electronics in investor presentation said the Global Electronics Industry is estimated at $2.9 trillion in 2020 which is equal to the GDP of India. United States and European Union together represent more than 40 per cent of the global market size. The global market for laptops, tablets and desktop computers is expected to stabilize around $220 billion by 2025.

The Indian Electronics Industry has grown at a CAGR of 13 per cent from Rs 4.72 trillion in FY16 to Rs 8.72 trillion in FY21. Indian electronics industry is estimated to grow at a CAGR of 25 per cent from Rs 8.72 trillion in FY21 to Rs 26.5 trillion in FY25, the company said.