Prabhudas Lilladher has given Buy recommendation for TVS Motors with a target price of Rs. 682 in its research report issued on Oct 21, 2021
Prabhudas Lilladher’s research report on TVS Motors
TVSL’s 2QFY22 EBITDA margin at 10% (+70bps YoY) surprised positively, as the company was able to deliver highest ever quarterly revenue and EBITDA amidst challenging demand environment (subdued festive season) and rising commodity cost pressures. The growth was driven by premiumisation, higher exports and price hikes. TVSL’s product pipeline also remains strong with Ntorq, Jupiter125, Apache, Raider etc. gaining traction. Earlier, the management had announced Rs10bn investment towards development of EV product portfolio and incrementally a new subsidiary will be created for EV focused products and technologies.
Maintain ‘BUY’ with a TP of Rs 682, at 23x on Jun-23E EPS and Rs 56 for TVS Credit. TVS remains our preferred pick in the 2W space. We marginally cut our estimates by ~2% over FY23-24 to factor in challenging demand environment.