Accumulate TVS Motor Company; target of Rs 599 : Dolat Capital

Dolat Capital recommended accumulate rating on TVS Motor Company with a target price of Rs 599 in its research report dated January 22, 2019.

Broker Research

January 30, 2019 / 08:31 IST

26 Aug, 2025 12:21

Volume

Todays L/H

Dolat Capital's research report on TVS Motor Company

TVS Motor (TVSL) reported a topline growth of 26.6% YoY, supported by a 19.8% YoY volume growth. TVSL’s volume was higher than the industry’s, driven by new product launches and an aggressive distribution expansion. The volume growth was largely led by 3-wheelers, scooters, and exports, which rose 31.7%, 46.9% and 25.8%, respectively. Margin profile was marginally better than estimated. This was due to the price hikes and improvement in product mix. We expect margins to sustain / improve from these levels. Improvement in product mix, coupled with operational efficiency, will support / expand margin profile as witnessed in the current quarter results. We expect TVSL volume growth to remain in the mid-teens and to continue to outperform the industry.

Outlook

This is likely to be driven by the strong portfolio of products across segments. We retain Accumulate, with a target price of `599, based on 25x FY2021 earnings.

For all recommendations report, click here