TVS Motor Q3 Results Review - Operationally Inline; High Other Income Drives PAT Beat: Motilal Oswal

Motilal Oswal Report

TVS Motor Company Ltd. posted an operationally in-line performance in Q3 FY24. The company posted its highest-ever Ebitda margin at 11.2% (+1,10 basis points QoQ).

We believe TVS Motor is well placed to outperform the two-wheeler industry, led by its multiple successful products in key categories, expansion in global geographies, and success in electric vehicles.

However, we believe strong earnings growth driven by recovery in underlying segments and margin improvement is fairly captured in the current valuations at ~45 times/37 times FY24E/FY25E earnings per share.

We retain our FY24E/FY25E earnings per share.

Reiterate 'Neutral' with a target price of ~Rs 1,880 based on ~27 times Dec-25E EPS (versus ~25 times earlier) and Rs 176/share for non-banking financial company.

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