Buy TVS Motor; target of Rs 4150: Anand Rathi

Anand Rathi's research report on TVS Motor

EBITDA surged by 40% y/y to Rs15.1bn, broadly in-line with our estimate. Our positive stance on the stock is backed by: (1) expected upturn in 2W volume (domestic/exports), led by GST relief and better financing availability; (2) market-share gain (domestic/exports); (3) relentless EV strategy; and (4) margin expansion led by rising economies of scale, better net-pricing and cost-cutting measures. We introduce FY28e with 15%, 19% and 23% growth in revenue, EBITDA and PAT, respectively.

Outlook

Thus, we maintain BUY on the stock with an upwardly revised TP of Rs 4,150 (from Rs3,100 earlier), valuing the stock at 38x of Sep’27e EPS (35x of FY27e EPS) and investment in TVS Credit Services at Rs135/share (2x of FY25 P/B).