TVS Motor Company Ltd. share price target

We initiate coverage on TVS Motor Ltd. (TVS) with a BUY and a price target of Rs. 405 implying 35% upside. Despite the recent out performance 53.4/219.8 in 6m/1 year compared with Sensex, we...

Background: TVS Motor, formerly known as TVS Suzuki, is the flagship company of TVS group with FY14 revenues of INR 83.79bn and the fourth largest two wheeler manufacturer in India. TVS has manufacturing facilities in Hosur, Mysore, Himachal Pradesh and Indonesia with a production capacity of 2.8mn. The product portfolio of TVS encompasses motorcycles (40%), mopeds(20%), scooters (22%), 3 Wheelers (6%) and Spares & Others(12%). TVS exports its products to over 50 countries and derives ~12% of revenues from exports. The market share across various segments are: Motorcycles (6%), Scooters (12%), Mopeds (100%) and 3 Wheelers (10%). In...

TVS Motor's (TVSL) delivered disappointing Q3FY15 performance, with below our as well as street's profit estimates. Company's net profit grew by 30% YoY (down 5% QoQ) to Rs 902 mn as against our estimates of Rs 1.09 bn. Negligible improvement in average realization, despite higher export and currency benefit, indicates increasing competitive intensity in domestic as well as export markets.

Background: TVS Motor, formerly known as TVS Suzuki, is the flagship company of TVS group with FY14 revenues of INR 83.79bn and the fourth largest two wheeler manufacturer in India. TVS has manufacturing facilities in Hosur, Mysore, Himachal Pradesh and Indonesia with a production capacity of 2.8mn. The product portfolio of TVS encompasses motorcycles (40%), mopeds(20%), scooters (22%), 3 Wheelers (6%) and Spares & Others(12%). TVS exports its products to over 50 countries and derives ~12% of revenues from exports. The market share across various segments are: Motorcycles (6%), Scooters (12%), Mopeds (100%) and 3 Wheelers (10%). In...

Background: TVS Motor, formerly known as TVS Suzuki, is the flagship company of TVS group with FY14 revenues of INR 83.79bn and the fourth largest two wheeler manufacturer in India. TVS has manufacturing facilities in Hosur, Mysore, Himachal Pradesh and Indonesia with a production capacity of 2.8mn. The product portfolio of TVS encompasses motorcycles (40%), mopeds(20%), scooters (22%), 3 Wheelers (6%) and Spares & Others(12%). TVS exports its products to over 50 countries and derives ~12% of revenues from exports. The market share across various segments are: Motorcycles (6%), Scooters (12%), Mopeds (100%) and 3 Wheelers (10%). In...

Background: TVS Motor, formerly known as TVS Suzuki, is the flagship company of TVS group with FY14 revenues of INR 83.79bn and the fourth largest two wheeler manufacturer in India. TVS has manufacturing facilities in Hosur, Mysore, Himachal Pradesh and Indonesia with a production capacity of 2.8mn. The product portfolio of TVS encompasses motorcycles (40%), mopeds(20%), scooters (22%), 3 Wheelers (6%) and Spares & Others(12%). TVS exports its products to over 50 countries and derives ~12% of revenues from exports. The market share across various segments are: Motorcycles (6%), Scooters (12%), Mopeds (100%) and 3 Wheelers (10%). In...

Background: TVS Motor, formerly known as TVS Suzuki, is the flagship company of TVS group and the fourth largest two wheeler manufacturer in India. TVS has manufacturing facilities in Hosur, Mysore, Himachal Pradesh and Indonesia with a production capacity of 2.8mn. The product portfolio of TVS encompasses motorcycles (40%), mopeds(20%), scooters (22%), 3 Wheelers (6%) and Spares & Others(12%). TVS exports it products to over 50 countries and derives ~12% of revenues from exports. The market share across various segments are: Motorcycles (6%), Scooters (12%), Mopeds (100%) and 3 Wheelers (10%). In...