Sharekhan has given Buy recommendation for TVS Motor Company with a target price of Rs. 688 in its research report issued on Apr 27, 2021

Sharekhan’s research report on TVS Motor Company

Q4FY2021 results beat our expectations, as the rise in EBITDA margins was higher than estimates. TVS Motors (TVSM) to benefit from a sharp recovery in domestic two-wheeler demand in FY2022E, driven by strong rural sentiments and increased preference for personal transport. Moreover, TVSM’s strong foothold in export markets is likely to keep overall sales robust going forward. Aggressive product launches, forays into new markets and investments in newer and cleaner technologies would drive growth.

Outlook

The stock trades below its historical average at P/E multiple of 22.5x and EV/EBITDA multiple of 12.0x its FY2023 estimates. We maintain Buy rating on the stock with an unchanged PT of Rs. 688.

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