TVS Motor Company Ltd. share price target

TVS Motors (TVS) is the third largest two- wheeler manufacturer in India with a market share of 14.8% in FY20. Q4FY20 revenue de-grew by 21%YoY due to sluggish Industry demand and production lock down. Surprisingly, EBITDA margin came in line with our expectation, led...

Background: TVS Motor Company Limited (TVSM), the third-largest two-wheeler manufacturer in India, is a part of TVS Group; it manufactures motorcycles, scooters, mopeds and three-wheelers in India. TVS Motors is credited with many innovations in the Indian automobile industry, notable among them being the introduction of India's first two-seater moped, the TVS 50cc. The company has presence in all the three sub-segments of two wheelers, i.e.,...

We recommended SELL on TVS Motors with a Target Price of Rs 310, a downside of 12% from CMP and Stop Loss Rs 370.

TVS Motor (TVS) reported a 44.8% YoY decline in its standalone net profit to Rs739mn for the Q4FY20 due to a 30% fall in its quarterly total sales volume. The company had reported a profit Rs1338mn in Q4FY19. The company has reported a decline of 21% YoY in its standalone revenue from operations at Rs34,814mn for the Q4FY20 under review as compared to Rs43,840 mn in the Q4FY19. EBITDA stood at Rs 2449mn, down 20.5% YoY for Q4FY20 as compared to Rs 3081mn in the Q4FY19, EBITDA margin was flat at 7% in Q4FY20 on account of negative operating...

TVS Motor (TVSL) Q4FY20 results were above our and consensus estimates at Revenue and PAT. Revenue was higher than our and consensus estimates an account of BSVI price hike. EBITDA margin for the quarter stood at 7.0% which was below our and above consensus estimates of 7.5% and 6.8% respectively mainly on account of higher RM cost. We expect 2W industry to see a double digit decline in FY21 driven primarily by adverse impact of the COVID-19 outbreak on economic growth and discretionary spending. The challenges for the 2W segment are likely to get aggravated as consumer spending will be severely impacted by the outbreak resulting in lower spending power both in urban and rural markets. We...

is expected to be better than 1HFY20 with reasonable growth in exports and presence of levers and lower tax rate (-950bps YoY to 17.8%) offset the impact of exceptional costs. The near-term for margin improvement. However, we believe current valuations already discount most of the outlook is poor due to demand contraction and supply bottlenecks. We believe, in FY21e, TVS positives of the better product mix, growth at export front and margin improvement and hence would grow lower than the industry due to downtrading and competitive prices in the entry...

TVS Motor's (TVSL) adj. Q4 EBITDA beat estimates by ~20% led by a healthy jump in ASP and impressive opex control.

TVS Motors Limited (TVSM) posted better than expected Q4 FY20 results as margins (adjusted for one-time BS4 provisions) were ahead of our as well as street estimates. TVSM managed to improve margins on a y-o-y basis despite a steep fall in the volumes. With rural sentiments strong due to a good Rabi harvest, reform measures by Government and expectations of normal monsoon for the upcoming year, the 2W industry is expected to recover faster, which in turn would benefit TVSM. Also, to ensure social distancing, there is possibility of people preferring personal transport over the public transport in the post COVID-19 era which would...

TVS Motor's (TVSL) Q3 EBITDA beat estimates by ~11% led by resilient margins at 8.8% (+70bps YoY, flat QoQ), despite a sharp 17% YoY drop in volumes.

TVSL: Margins resilient; outlook challenging. CPBI: In-line quarter