May 26, 2012, 02.40 PM | Source: Moneycontrol.com
Dolat Capital is bullish on TVS Motor and has recommended buy rating on the stock with a target price of Rs 43 in its May 25, 2012 research report.
, Dolat Capital |
"TVS Motor reported top-line revenue at Rs 16.2bn. The company sold ~205,000 motorcycles, ~134,000 scooters and ~193,000 mopeds. It sold ~9500 three wheelers in 4QFY12 compared to ~12,000 vehicles sold same period previous year. Its blended realisation per vehicle declined ~10%QoQ as a result of a lower 3W sales."
"The company’s operating margins declined 80bps QoQ to 6.1%. This is the lowest quarterly margins done by the company since FY09. This decline was purely led by lower realizations due to lower 3W sales. Market share- 14.1% in 2W, down 90bps YoY; 2.8% in 3W, down 150bps YoY TVS’s share in scooter segment declined from 21.6% in FY11 to 19.4% in FY12. In the motorcycle segment, it lost market share by 80bps YoY to 6.2% in FY12. Its market share in the three wheeler segment declined significantly from 4.3% in FY11 to 2.8% in FY12."
"3W sales continue to be under pressure. As a result, its blended realization will continue to be lower. The company plans to launch two products one each in the motorcycle and scooter segment. We have estimated a ~7% volume growth for two wheelers and 5% volume growth for three wheeler segment. This gives us a volume of 2.51mn in FY14. The stock has significantly underperformed over the last three months on fears of a slowdown in the 3W segment. It currently trades at 7.0xFY14E. We maintain Buy," says Dolat Capital research report.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Two-wheeler and three-wheeler maker TVS Motor Comp
TVS Motor Company Ltd has informed BSE that at the
Two-wheeler manufacturer TVS Motor Company is expe
The success of the model has pushed the company's
Net Sales are expected to increase by 15.9 percent
Since the beginning of last month, when the Suprem
Dolat Capital is bullish on Shemaroo Entertainment