Sharekhan has given Buy recommendation for TVS Motor Company with a target price of Rs. 803 in its research report issued on Dec 15, 2021
Sharekhan’s research report on TVS Motor Company
TVS Motor (TVSM) and BMW Motorrad (BMW) have deepened their relationship and extended partnership to jointly develop new platforms and future technologies, including electric vehicles. The scope of new arrangement includes product development for both companies, which will be retailed globally. TVSM’s earnings growth are expected to grow at robust 51.9% CAGR during FY21-23E, led by a 22% revenue growth and a 170 bps expansion in EBITDA margin, with ROE to remain sustainable over 20%.
We maintain a Buy onTVSM with an unchanged price target of Rs. 803. The stock trades below historical average at a P/E multiple of 22.6x and EV/EBITDA multiple of 12.5x its FY2023 estimates.