Neutral TVS Motor Company; target of Rs 392: Motilal Oswal

Motilal Oswal 's research report on TVS Motor Company

TVS Motor Company (TVSL)’s operating performance was supported by lower other expenses. It expects cost-cutting efforts to boost margins, with volume recovery and the Premium portfolio outperforming. We upgrade our FY21/FY22E EPS by 2%/5% to factor volume recovery. Maintain Neutral, with TP of INR392 (~18x Sep’22 EPS + INR40 for NBFC).

Outlook

We upgrade our FY20/FY21 EPS by 2%/5% to INR10.3/17.5 to reflect volume recovery. Valuation at 39.1x/22.9x FY21E/FY22E EPS already reflects the large part of earnings recovery. Maintain Neutral, with TP of ~INR392.

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