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Accumulate TVS Motor Company; target of Rs 964: Geojit

Geojit recommended accumulate rating on TVS Motor Company with a target price of Rs 964 in its research report date July 29, 2022.

July 31, 2022 / 03:41 PM IST
 
 
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Geojit's research report on TVS Motor Company


TVS Motors (TVS) is the third largest two-wheeler manufacturer in India with a domestic market share of 17.6% in FY22. Q1FY23 revenue grew by at 9% QoQ and recorded highest ever revenue and EBITDA, due to improved product mix and price hike. Despite adverse commodity price, strong cost control initiatives has aided margin to maintain at 10.0%(+302bps YoY). In the domestic market, It aims a gradual recovery with the pick-up in economic activity & ramp up in the EV portfolio. TVS is planning to reach 10,000 units/month EV sales by H2FY23. Higher export and stability in exchange rate are currently driving the international numbers. Export grew by 7%QoQ. The company has outperformed the domestic industry growth by 17%YoY.



Outlook


We value TVS on a SOTP basis, standalone business at 25x FY24E EPS (and TVS Credit Services at 1x BV to arrive at a target price of Rs. 964/share and maintain our Accumulate rating .

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TVS Motor Company - 290722 - geo

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first published: Jul 31, 2022 03:41 pm
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