Sharekhan's research report on TVS Motors
Q4 results were ahead of estimates as TVSM manged to improve margins (adj for one time BS4 provison) despite steep fall in volumes. 2W segment likely to witness faster recovery due to higher rural contribution. Rural sentiments strong due to good rabi harvest & normal monsoon forecast. Margin improvement to continue given cost control & volume recovery; TVSM to post 17% earnings CAGR over FY20-22; valuations at 18.3x core business below historical average.
We upgrade our recommendation on TVS Motors (TVSM) to “Buy” from “Hold” with revised PT of Rs 390.
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