Buy TVS Motor; target of Rs 4200: Emkay Global Financial

Buy

Emkay Global Financial' research report on TVS Motor

TVSL logged a healthy Q2, with 29% YoY revenue growth and 12.7% EBITDAM (vs 11.7/12.5% YoY/QoQ). Per the management, the domestic 2W industry grew 24% during the festive season (urban/rural: ~26/22%), with TVSL outpacing peers with ~32% growth. Also, TVSL expects to clock a healthy H2 (8% 2W industry growth in H2FY26), implying 6% growth for FY26 (vs 2% in H1FY26), aided by GST cut-led demand spike and festive season. We believe TVSL remains a key beneficiary of India’s EV transition (refer to our E-2W thematic: Yet another mega shift in motion), backed by its strong e-2W portfolio (iQube) and recent launches (eg Orbitor, Cargo E-3W).

Outlook

We build-in 20%/25%/28% revenue/EBITDA/core EPS CAGR in FY25-28E, while maintaining BUY and our SoTP-based TP of Rs4,200 (35x Sep-27E core PER).

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TVS Motor - 29102025 - emkay