TVS Motor Company Ltd. share price target

We upgrade our rating from SELL to HOLD with a revised target price of Rs 445 from Rs 400 earlier valuing the company at 22x FY23EPS.

TVSL's EBITDA came ~5% better at Rs4.3bn (PLe Rs4.1bn) led by tight control and low advertisement spends in low volume environment. Consequently, TVSL reported better than expected margins at 9.3% (+50bp YoY, PLe 8.6%) However, adj. PAT came in-line at Rs1.9bn (+9.7% YoY) as depreciation cost came in higher at Rs1.3b (PLe Rs1.2b). We believe with eventual volume...

TVS Motor's (TVSL) Q2FY21 revenue was marginally better than estimated due to above-expected ASP.

TVS Motors Limited's (TVSM) Q2FY2021 results were higher than our as well as consensus estimates, driven by better-than-expected margin performance. Overall revenue grew by 6% y-o-y, driven by an 8% y-o-y increase in realisation due to price hikes on account of BS6 norms. Volumes dropped marginally by 2% y-o-y. Operating profit margin (OPM) stood at 9.3%, highest in the past decade and beating our expectation of 8.5%. Margin improved on a y-o-y basis despite cost pressures on account of BS6 norms. Cost-control measures led to margin improvement. Demand in domestic market has improved, driven by strong rural...

We are initiating coverage on TVS Motors Company Ltd (TVSL) with a SELL recommendation and a Target Price of Rs 400, which implies ~13% dowside from the current levels.

TVS Motors (TVS) is the third largest two- wheeler manufacturer in India with a market share of 13.9% in FY20. Q1FY20 revenue de-grew by 68%YoY due to sluggish Industry demand and production lock down in April & May month. Sales volume declined by 71%, dragging the firm into operating losses of 50cr, added up by higher material and fixed cost. Despite taking price hike in Q1 and July by 1.1% we believe TVS could not pass the full BS6 cost due to weak demand and...

TVS Motor loss for the quarter stood at Rs 1,391 Mn during Q1FY21. Standalone revenue stood at Rs 14,317 Mn for Q1FY21 vs Rs.44,686 Mn for the Q1FY20. Lower volumes due to Covid-19 pandemic led to fall in revenue. Company has reported EBITDA loss of Rs 488 Mn, as compared to EBITDA gain of Rs 3,558 Mn in Q1FY20. Total Volume was down by 71.1% YoY to 2,66,933 units. Both production and sales were severely impacted during the quarter. Interest cost increased due to additional borrowings in 1QFY21 to ensure timely payment to suppliers. The...

TVS Motor (TVSL) Q1FY21 results were above our estimates at EBITDA and PAT level. EBITDA and Adj. loss for the quarter was Rs488mn/Rs1.4bn vs our estimates of Rs667mn/Rs1.5bn on account of lower RM cost and lower operating expenses. We expect 2W industry to decline ~15% in FY21 and more demand for commuter segment. We anticipate lockdown in certain states/cities would impact demand for TVSL premium products. We assume TVSL products like Apache/RR310 and scooter portfolio (Jupiter/Ntorq) could see muted sales. We cut our volume /revenues estimates by 10%/7% for FY21/FY22. We change our rating to SELL (earlier HOLD) with TP of Rs300...

It expects cost-cutting efforts to boost margins, with volume recovery and the Premium portfolio outperforming. 25.6%), weighed by a weaker product mix (lower export mix and Apache) and the impact of the BS6 cost inflation (as contribution margins are yet to be Furthermore, op. Interest cost increased due to additional borrowings in 1QFY21 to ensure The company expects demand recovery in 2HFY21, with TVSL performing better than the industry on account of its portfolio. Apache faced severe production-related challenges, which impacted the mix in Expect margins to improve in 2H, driven by cost cutting and focused market strategy. would be INR3b for FY21 and investment in TVS Credit would be We upgrade our FY20/FY21 EPS by 2%/5% to INR10.3/17.5 to reflect volume recovery. We expect TVSLs market share gains to slow as there are now only limited product gaps in its portfolio. We upgrade our FY20/FY21 EPS by 2%/5% to INR10.3/17.5 to reflect demand recovery.

operational performance, c) higher other income and d) exceptional gains of Rs760mn. 2HFY20 towards lower priced 2Ws, where TVS presence is minimal. Sales expectations from its most is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers profitable segments (3W & exports) also remain blurry. This, along with frequent local level for margin improvement. However, we believe current valuations already discount most of the lockdowns is creating supply side issues. We believe, in FY21e, TVS would grow lower than the...