Buy TVS Motor Company; target of Rs 1769: Sharekhan

Sharekhan's research report on TVS Motor Company

Export volumes recovered to above 1 lakh units in September 2023, first time after July 2022. TVSM is targeting a ramp-up of EV production and plans to expand EV portfolio in coming months. The stock trades at a P/E multiple of 23.8xand EV/EBITDA multiple of 13.2x its FY2026E estimates.

Outlook

We maintain our BUY rating on TVS Motor (TVSM) with revised PT of Rs 1769 in expectation of gradual revival in export volumes, successful launches in EV space and sustenance of high EBITDA margins.