Prabhudas Lilladher's research report on TVS Motors
TVSL's reported mixed set of results where revenues came in-line at Rs34.8bn (-21% YoY). Despite dealer incentives worth Rs0.2bn (net off from revenues), realization came in at Rs55k/unit (PLe Rs54k/unit). Led by tight cost control, EBITDA came in higher at Rs2.5bn (PLe Rs2.3bn, -20.5% YoY) and margins at 7% (PLe 6.6%, flat YoY). The management sounded cautiously optimistic on domestic sales outlook led by positive rural sentiments while exports may see near term challenges. We cut FY21/22 EPS by 11%/3.4% to factor in lower volumes for both domestic/ exports markets and higher interest cost.
We have maintained our price target unchanged at Rs318 at 16x Mar-22 core EPS (unchanged) and Rs48 for NBFC (v/s Rs44). Maintain Hold.
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