TVS Motor Company Ltd. share price target

(IDBI Cap. Est: Rs45.4bn; Consensus Est: Rs45.5bn), led by +20% YoY / -9% QoQ growth in volumes and better realizations. Net realization for the quarter increased +2.7% QoQ which was impacted by price hike of ~0.6% taken by the company during the quarter. With the recent safety regulation models are getting migrated to new refreshes which also helped to improve the overall realization. Gross margin remained flat QoQ to 24.2%. EBITDA margin for the quarter remained flat YoY / -50 bps QoQ to 8.1% (IDBI Cap. Est: 7.8%; Consensus Est: 7.9 %). Other expenses increased +1.7% YoY / -3.6% QoQ to Rs5.1bn. Other income declined -85% YoY/ -12%...

Despite taking price hike for the quarter EBITDA margin improved marginally by 30bps which is below our expectation. We believe TVS would continue to gain market share in MC/scooter segment on account of recent launches and network expansion. Higher raw material price & heightened competition in the commuter MC segment and in the scooter is expected to keep margin under check. Considering the near term headwinds we lower our EBITDA margin estimate by 20bps/40bps for FY19/FY20E respectively....

Our recent meeting with GAIL reinforces our conviction in the stock despite a perceived cloud over earnings amid the volatile macro environment. Concerns over US LNG spreads and cyclical business profitability appear to be easing as oil prices stabilise in the US$ 60-70/bbl range. Further, the outlook on gas transmission volumes looks buoyant on the back of incremental LNG regasification capacities and pipelines. We trim FY19 earnings by 10% on...

Beats Estimates Maintain HOLD: During Q3FY19, TVS sales increased by 26.1% YoY to Rs46.6bn (above our estimates Rs. 45.5 bn). Its EBITDA margins declined by 7 bps to 8.1% (our estimates were 7.3%).

22 January 2019 TVSL reported healthy 3QFY19 results with realizations growing 5.3% YoY (+2.7% QoQ) to INR47.1k (v/s est. INR46k) driven by improvement in mix, price increase (0.6%) and favorable forex. Volumes grew 20% YoY (-9% QoQ) to 989.7k units. Consequently, revenues grew 26% YoY to INR46.6b (in line), while gross margins came in at 24.2%, declining -340bp YoY (flat QoQ). Staff costs were below estimate at INR2.4b (est. INR2.6b) and other expense came in slightly higher at INR5.

Q2FY19 revenue grew by 23%YoY led by 15% volume growth and superior product mix. PAT de- grew by 1% due to lower other income & higher tax. EBITDA margin contracted by 30bps due to commodity inflation and higher discount in commuter segment to gain market share. Penetration in the premium motorcycles is becoming a game changer for the company. This category (>150cc) grew by 27%YoY for H1FY19. We reduce our earnings estimate for FY19/FY20 by 8%/5% incorporating recent changes in the Ind-AS (2% of revenue) and lower other income....

TVS motors (TVSL) Q2FY19 results, were above our and consensus estimates on operating level. EBITDA margin for the quarter stood at 8.6% vs our and consensus estimates of 7.9% each respectively. Increase in revenue on QoQ was primarily on account of change in IndAS. As per the new accounting standard; interest income from...

in H2FY2019; TVSM to continue outpacing the industry: Rural incomes have been strong given the third consecutive year of normal monsoon and increased MSPs. While higher insurance costs temporarily impacted the demand in September and October beginning, the industry is witnessing pick up and expects growth to be strong in the latter part of October 2018. TVSM...

Strong operating performance. Lower other income impacted PAT TVS Motor (TVSL) reported good set of numbers with top line growth of 23% supported by 15% volume growth which was largely led by exports. Margin profile upward trend is a positive surprise and we expect margins to sustain / improve from these levels. Improvement in product mix coupled with operational efficiency will support / expand margin profile. TVSL volume growth is expected to remain in mid-teens and will continue...