TVS Motor Company Ltd. share price target

We recommend a BUY on the stock with a target price of Rs 720/share, implying an upside of 14% from the CMP.

TVS Motors (TVS) is the third largest two-wheeler manufacturer in India with a domestic market share of 14.3% in FY21. Q3FY22 revenue growth came at 6% YoY (largely in-line with our estimate) due to improved product mix, The growth was largely driven by robust export demand of 13%YoY. Despite adverse commodity price, Strong cost control initiatives and price hike aided margin upbeat. Gained 50bps YoY. We expect confidence in the domestic market to recover gradually...

In 3QFY22, TVS motors reported standalone revenue of 57.1bn (5.8%/1.5% YoY/QoQ); led by better than expected ASP growth. Realizations rose 15% YoY (19%/6% YoY/QoQ) to 65k on the back of price hikes and better product mix. EBITDA margin expanded 50bp YoY (+30bp QoQ) to 10%, aided by operating leverage. Contraction in gross margin was restricted to ~15bp YoY (flat...

We maintain our BUY rating on the stock with a revised target price of Rs 720 (from Rs 670 earlier) valuing the company at 22x FY24 EPS.

We believe company will be able to sustain its growth and margin expansion led by (i) new product launches both on ICE and Electric platform(ii) exports sustaining the healthy momentum and (iii) cost reduction efforts and price hikes aiding margins. We upgrade TVS to BUY at revised TP of Rs 751 at 23x...

TVSL's performance was above estimate driven by improved mix leading to strong ASP growth and margin beat. The management's focus remains on expanding the EV capacity, its portfolio and reach. It is also searching for an investor in its NBFC business, which can unlock value. We maintain our FY22E/FY23E EPS and Neutral rating with a TP of INR625, as valuations fairly capture the expected strength in earnings growth and risk of an EV disruption to its Scooter business. Revenue/EBITDA/adjusted PAT grew 6%/11%/8.5% YoY in 3QFY22 to...

In 2QFY22, TVS motors reported standalone revenue of 56.2bn (22.0%/42.8% YoY/QoQ); led by better than expected ASP growth (+3.4% QoQ vs. +1.5% NBIE). Realizations rose 15% YoY (2% QoQ) to 61.1k on the back of price hikes and better product mix. EBITDA margin improved 270bp QoQ (20bp YoY) to 13.7%, aided by better operating leverage. Gross margins came in at 24.1% (down 20bps QoQ) due to RM cost headwinds. As a result, EBITDA and adjusted PAT improved...

TVS Q2FY22 profit increased by 41.5% YoY to Rs2.8bn which is in line with our estimates. The Company reported double digit EBITDA margins twice in last three quarters which is quite commendable. Management commentary about growth prospects in the domestic 2W market was encouraging. However aggressive plans in the EV segment with new launches and new initiatives in export markets were impressive. To factor in current slackness in the business environment, we have reduced our volume and PAT estimates by 0.9% and 6.8% for FY23. We believe, TVS is likely to grow ahead of industry in its domestic and its international business based on the strength and popularity...

We upgrade our rating from HOLD to BUY with a revised target price of Rs 670 (from Rs 570 earlier) valuing the company at 22x FY24 EPS.