Motilal Oswal's research report on TVS Motor Company
TVS Motor Company (TVSL) posted an in-line operating performance in 2QFY24, wherein it recorded the highest-ever EBITDA margin of 11% (+40bp QoQ; in line). It still has a further scope of margin improvement in the coming quarters, led by operating leverage and lower marketing expenses that was incurred in 2Q for new launches.
Outlook
However, we believe the strong earnings growth driven by a recovery in underlying segments and margin improvement is fairly captured in the current valuations of 35.7x/30.4x FY24E/FY25E EPS. We maintain our FY24E/FY25E EPS. Reiterate Neutral with a TP of ~INR1,500 (premised on ~22x Dec’25E EPS + INR168/sh for NBFC).
For all recommendations report, 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.
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
