Prabhudas Lilladher has given Buy recommendation for TVS Motors with a target price of Rs. 751 in its research report issued on Feb 08, 2022
Prabhudas Lilladher’s research report on TVS Motors
TVS reported record revenue/EBITDA/PAT at Rs 57/5.7/2.9bn (+6/11/9% YoY) with a double-digit EBITDA margin of 10% (+50bps YoY, flat QoQ). The robust performance was driven by improved average realizations at ~Rs 65k (+19/6% YoY/QoQ). This was on the back of mix improvement, sustained export momentum and price hikes (5/1% YoY/QoQ). TVSL’s product pipeline also remains strong with several new models on ICE and EV to be launched in near future. The company is proactively embracing the EV transition and is setting up the facility to produce ~10k EVs per month to be operational from 1QFY23 also company is expanding the EV distribution network & will reach pan India level by the end of the year. Company also aspires dominant international presence in EVs by leveraging its global tie ups. We believe company will be able to sustain its growth and margin expansion led by (i) new product launches both on ICE and Electric platform(ii) exports sustaining the healthy momentum and (iii) cost reduction efforts and price hikes aiding margins.
We upgrade TVS to BUY at revised TP of Rs 751 at 23x on Dec-23E EPS and Rs 34 for TVS Credit. We factor in EPS CAGR of 23% over FY22-24.
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At 15:05 hrs TVS Motor Company was quoting at Rs 656.00, up Rs 19.20, or 3.02 percent.
It has touched an intraday high of Rs 685.00 and an intraday low of Rs 638.65.
It was trading with volumes of 272,170 shares, compared to its thirty day average of 80,373 shares, an increase of 238.63 percent.
In the previous trading session, the share closed down 2.47 percent or Rs 16.15 at Rs 636.80.
The share touched its 52-week high Rs 793.45 and 52-week low Rs 495.00 on 09 November, 2021 and 24 August, 2021, respectively.
Currently, it is trading 17.32 percent below its 52-week high and 32.53 percent above its 52-week low.
Market capitalisation stands at Rs 31,165.71 crore.