Arihant Capital's research report on TVS Motor Company
TVS Motor Company has reported largely in line with our estimates and strong export volume on the back of the performance of its product portfolio, export momentum, and exchange rate benefits; Standalone revenue stood at INR 60,087 Mn, against our estimate of INR 59,285 Mn registering a growth 52.7% YoY/ 8.7% QoQ. EBITDA stood at INR 5,995 Mn, against our estimate of INR 5,820 Mn, Registering a growth of 119%YoY/ +7.7%QoQ.On the margins front, EBITDA margin expansion by 302bps YoY/ -9bpsQoQ to 9.98%, against our estimate of 9.8% backed by the performance of its product portfolio, export momentum and exchange rate benefits.
We value TVS Motors' standalone business at an FY24E PE of 25x to its EPS estimate of INR 39.7 for FY24 and TVS credit services at 1x its BV (INR~35/ share), which yields a revised target price of INR 1,028( earlier target price: INR 718 on a SOTP basis). We maintain our Accumulate rating on the stock.
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