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.
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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