Moneycontrol PRO
HomeNewsBusinessStocksAccumulate TVS Motor Company; target of Rs 2179: Prabhudas Lilladher

Accumulate TVS Motor Company; target of Rs 2179: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on TVS Motor Company with a target price of Rs 2179 in its research report dated May 09, 2024.

May 13, 2024 / 15:09 IST
Accumulate

Accumulate

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on TVS Motor Company

TVS Motor’s (TVSL) 4QFY24 up by 23.7% YoY, led by ASP expansion of 1.1% YoY/2.6% QoQ as volume growth was 22.4% YoY. Revenue growth was 1.8%/2% better than PLe /BBGe respectively. EBITDA grew by 36.3% YoY with a margin expansion of 105bps YoY to 11.3%, led by better operating leverage and softer commodity prices. EBITDA was in line with our estimate while it was 2.1% higher than BBGe whereas margin was in-line with PLe/BBGe. Going ahead, the management aims to increase the offering for iQube and increase distribution reach for its premium segment bikes. In our view, TVSL will continue to deliver healthy growth given (1) sustained demand for its new product launches (2) consistently improving export geography to aid in volume expansion in both 2W & 3W segment and (3) E3- Wheeler launches to aid in market share gain. We forecast its domestic/export volume to grow at a CAGR of 9.7%/15.8% over FY24-FY26E, factoring this we estimate its revenue/EBITDA/APAT to grow at a CAGR of 14.3%/20.8%/22.6% over the same period.

Outlook

Given the healthy growth outlook, we upgrade our rating from ‘HOLD’ to ‘ACCUMULATE’ with a TP of Rs 2,179 (including Rs 69 for TVS credit), valuing it at a PE of 32x on its FY26E EPS.

For all recommendations report, click here

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.

13052024 -39

Broker Research
first published: May 13, 2024 03:09 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Subscribe to Tech Newsletters

  • On Saturdays

    Find the best of Al News in one place, specially curated for you every weekend.

  • Daily-Weekdays

    Stay on top of the latest tech trends and biggest startup news.

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347