Sundaram Clayton

Hi Kandukuri,

Your comments above have been super helpful, so firstly, thank you so much for educating all of us.

I have 2 questions:

1. How do I value TVS holding business other than its stake in TVS motors?

Context: today the market cap of TVS motor is ~115k. TVS holding has ~50% stake and then factoring in 50% discount due to holding structure of TVS holding, the market cap that TVS holdings gets due to TVS motors is ~25k, which is where TVS holding is exactly at today. So I want to see how much fuel do we still have in TVS holding?

2. What is your perspective on Sundaram Clayton valuation?

Context: I feel it is suppressed because its profit have been taking a huge hit due to non operation of USA factories and fixed cost from them. However this may improve on some years. Also, I think the huge Chennai land they have in the prime area, is worth a lot which they may sell some day. Whatever I am saying here is not with a lot of confidence, so looking for guidance from you as well. Thank you!