TVS Motor Company’s Q2 PAT at Rs 9.1 billion was below our estimate of Rs 9.9 billion, even as the Ebitda miss was just 2%. PAT miss was largely driven by higher interest and depreciation expenses, along with a loss on the fair valuation of its investment in TVS Supply Chain. Backed by GST rate cuts, management expects two-wheeler demand momentum to sustain in 2H and TVS to continue outperforming going forward.
NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Given TVS Motor Company Ltd.’s healthy launch pipeline, we have raised our estimates for FY27 by 5.5%. Overall, we factor in TVS Motor to post a revenue/Ebitda/PAT CAGR of 21%/25%/29% over FY25-28E.
Its consistent market share gains across key domestic and export segments, along with a focus on gradual improvement in margins, have driven healthy returns over the years.
This is likely to help sustain its premium valuations in the long run.
Given its consistent outperformance, which is likely to continue going forward, we now upgrade TVS to Buy (from Neutral earlier). We value TVS at 36x Sep’26 EPS (from 35x earlier) to arrive at our target price of Rs 4159 per share.
Click on the attachment to read the full report:
Also Read: Sona BLW Q2 Review — Motilal Oswal Stays 'Neutral' Post Steady Results Amid Challenging Macro
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
'Buy' Five Star Business Shares Maintains Motilal Oswal Despite Soft Q2 On Improved Growth Visibility
ICICI Bank Remains Motilal Oswal's Preferred 'Buy' In The Sector Post Robust Q2 Results — Check Target Price
LTIMindtree Q2 Review: Motilal Oswal Maintains 'Buy', Sees 18% Upside Potential — Check Target Price
'Buy' DMart Shares Maintains Motilal Oswal Post Inline Q2 Results — Check New Target Price
POPULAR