Sharekhan's research report on TVS Motor Company
Q3FY2021 results beat our expectations as rise in EBITDA margins was higher than estimates. TVSM to benefit from the sharp recovery in domestic two-wheeler demand in FY2022E, driven by strong rural sentiments and increased preference for personal transport. Moreover, TVSM’s strong foothold in export markets is likely to keep overall sales robust going forward. The stock is trading at P/E multiple of 22.2x and EV/EBITDA multiple of 11.7x its FY2023 estimates.
We maintain a Buy rating on TVS Motors (TVSM) with a revised PT of Rs. 620, factoring earnings upgrade, owing to improvement in EBITDA margins.