Geojit BNP Paribas's research report on TVS MotorTVS Motors (TVSM), is the third largest two- wheeler manufacture in India with a domestic market share of 13.5%. TVS Motor’s (TVSM) Q4FY16 sales grew by 15.3% YoY in line with our estimate while PAT grew 30% YoY, marginally below our expectation. EBITDA margin was disappointing at 6.3%, 70bps below our estimate due to higher marketing expenses. Average realization improved by 5.3% YoY benefitted by product mix, favorable currency and price hike. Market share has been maintained on the back of two new launches. Going forward we believe TVSM will increase its domestic market share through volume growth from revival in rural demand and new launches. We lower our FY17E Revenue and EPS estimates by 2.8% & 6.8% on weaker export market and higher marketing expenses. We roll-over our valuation to FY18E and revise our target price upward to Rs316 while change our rating from Accumulate to Hold. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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