Sharekhan's research report on TVS Motor Company
Aggressive product launches, foray into new markets and investments in newer and cleaner technologies with profitable growth would be key growth drivers for TVS Motor (TVSM). New launches and investments in branding would boost TVSM’s market share in India and global markets. Its EV products are doing well and is likely to grow robustly, led by increasing penetration and aggressive launches planned in EV segment over the next 8-12 quarters. Earnings growth is expected to clock a robust 48.5% CAGR during FY2022-FY2024E, led by 19% revenue growth and a 220-bps expansion in EBITDA margin, with RoE to sustain at over 25%. Stock trades at P/E multiple of 24.9x and EV/EBITDA multiple of 14.4x its FY2024E estimates.
We maintain a Buy rating on TVSM with a revised price target of Rs. 1,254, by rolling forward target multiple to September 2024E EPS.
At 15:29 hrs TVS Motor Company was quoting at Rs 1,070.80, up Rs 3.05, or 0.29 percent.
It has touched an intraday high of Rs 1,086.10 and an intraday low of Rs 1,061.05.
It was trading with volumes of 93,678 shares, compared to its thirty day average of 78,259 shares, an increase of 19.70 percent.
In the previous trading session, the share closed down 1.40 percent or Rs 15.20 at Rs 1,067.75.
The share touched its 52-week high Rs 1,094.65 and 52-week low Rs 513.00 on 21 September, 2022 and 07 March, 2022, respectively.
Currently, it is trading 2.18 percent below its 52-week high and 108.73 percent above its 52-week low.
Market capitalisation stands at Rs 50,872.33 crore.
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