TVS Motor Company Ltd. share price target

TVS Motor (TVSL) Q4FY21 result were above our and consensus estimates on all parameters. Revenue was ahead of our estimate on account of higher realization, favorable product mix whereas EBITDA was above our and consensus estimates due to lower RM cost and lower operating expenses. We expect domestic 2W/3W industry to see a double digit growth for FY22 on a low base despite 2nd wave of covid as vaccination drive will help in bringing normalcy. We anticipate stronger recovery in export market for 2W/3W segment would help TVSL to partially mitigate any slowdown in domestic market in near term. We build our volume growth estimates for FY22/FY23...

TVS Motor (TVSL) posted a Q4FY21 beat on all counts.

We continue to maintain our HOLD rating with a revised target price of Rs 600 from Rs 500 earlier valuing the company at 23x FY23EPS.

VS Motors (TVS) is the third largest two-wheeler manufacturer in India with a market share of 13.9% in FY20. We believe sentiments in the rural is positive and urban demand is showing sign of revival. Higher export, stability in exchange rate are currently driving the industry numbers. Q3FY21 revenue came at 30%YoY on account of strong double digit volume growth, premium product mix and price hike. TVS was able to maintain its margin above 9% (+70bps)due to...

We continue to maintain our HOLD rating with a revised target price of Rs 500 from Rs 445 earlier valuing the company at 22x FY23EPS.

TVSL's Q3FY21 results were in line with record EBITDA margins of 9.5% (+70bp YoY, in line) driven by tight cost control especially on A&P; spends. Adj PAT grew 35% YoY to Rs2.65bn (in-line) driven by healthy operating performance. With declining retails in domestic 2W segment, we believe cost savings related to A&P; are short lived. Further, sharp increase in RM cost too will act as a headwind since series of price hikes over past 18 months have already impacted buying sentiments significantly. Near term tailwinds such...

TVS Motor's (TVSL) Q3FY21 revenue was marginally better than estimated due to above-expected ASP.

In 2QFY21, TVS motor's revenue increased by 5.9% YoY (221% QoQ) to 46bn despite a 2% YoY decline in volume. The decline in volumes was largely compensated by higher realizations up 8.1% YoY The Company undertook a blended price hike of 1.5% to pass on the higher costs of BS-VI which led to realization growth. The volume recovered to last year's levels on account of pent-up demand, strong rural economy, availability of retail financing and rise in preference of personal mobility. For 2HFY21E management remains cautiously optimistic as sustainability of...

Net sales grew by 6% YoY to INR46b as volumes declined 2% YoY and realizations grew ~8.1% YoY (-1.1% QoQ) to INR53.1k (v/s est. INR54.7k), driven by the BS6 cost pass-through. Gross margins contracted 70bp QoQ (-320bp YoY) to 23.5% (est. 25%) on the impact of BS6 cost inflation (as contribution margins have not yet been...

TVS Motors (TVS) is the third largest two- wheeler manufacturer in India with a market share of 13.9% in FY20. We believe sentiments in the rural is positive and urban demand is cautiously optimistic. Higher export, stability in exchange rate and pent up demand are currently driving the industry numbers. Q2FY21 revenue came marginally below our expectation at 6%YoY due to muted volume demand of 2%YoY. However, premium product mix, higher export and price hike led to the growth....