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Buy TVS Motor Company; target of Rs 581: Motilal Oswal

Motilal Oswal is bullish on TVS Motor Company has recommended buy rating on the stock with a target price of Rs 581 in its research report dated April 27, 2017.

June 08, 2017 / 19:03 IST
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Motilal Oswal's research report on TVS Motor Company

Total volumes grew 2% YoY (-6.3% QoQ) to 673.6k units. Realizations declined marginally by 0.3% YoY (+1.7% QoQ) to INR 42.2k. Net sales grew 1.7% YoY (-4.7% QoQ) to INR 28.5b. Reported EBITDA margin shrunk 140bp YoY (160bp QoQ) to 5.7% (est. of 6.7%).

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Outlook

The stock trades at 30.1x/18.8x FY18E/FY19E EPS. Maintain Buy with a TP of INR 581 (20x FY19E EPS + INR 46/share for value in NBFC investment post 20% Hold Co discount).