TVS Srichakra Ltd. share price target

TVS Srichakra (TVSS) posted a 5% QoQ increase in Q4FY21 revenue, with an above-expected EBITDA margin of 13.3% (11.2% est.).

Having aggressively penetrated the OEM segment, TVS Srichakra (TVSS) now intends to focus on the aftermarket through an elaborate brand building exercise.

TVS Srichakra's (TVSS) Q2FY21 revenue was marginally below expectations at Rs 5.4bn, but a sharp 25% YoY drop in other expenses led to superior operating margins at 15.9% (13.9% est.).

TVS Srichakra (TVSSL) reported a good set of numbers for 4QFY2016. Its top-line grew by 13.0% yoy to Rs525cr. On the operating front, the raw material cost came down significantly, ie by 805bp yoy to 48.1% of sales. Still, the EBITDA margin expanded by a marginal 68bp yoy to 14.5% as raw material cost savings were offset by higher employe..

TVS Srichakra (TVSSL) reported a good set of numbers for 3QFY2016. The top-line grew by 4.0% yoy to `509cr. The EBITDA margin expanded by 313bp yoy to 15.7%, mainly due to a 689bp yoy decline in raw material cost as a percentage of sales as domestic rubber prices declined by ~10.0% on a yoy basis and ~8.0% on a qoq basis. As a result, the EBITDA grew by 29.3% yoy to `81cr. The company has reduced its debt in the current fiscal. Lower debt level (~`37cr as on 1HFY2016 excluding current maturities) has resulted in interest expense declining by 57.7% yoy to `3cr for 3QFY2016. Owing to a better operational performance and lower interest outgo, the net profit nearly doubled to `48cr from `26cr in the same quarter of the previous year. Leadership position in 2W OEM segment and growing share in aftermarket segment: TVSSL is the largest 2W/3W tyre manufacturer with a leadership position in the 2W OEM segment. It is currently the third largest player in the aftermarket segment. Although motorcycle sales have declined in recent times owing to poor rural economy, scooter sales remain strong thus resulting in lower decline for overall 2W segment. TVSSLs key clients...

Leading Player in the 2/3 Wheeler Tyres Market: TVS Srichakra is the leader in 2/3 wheeler domestic OEMs tyres market and stands at No. 3 in the aftermarket segment. It has an overall market share in tyres of around 5% as of FY14.