1 week Ago By Motilal Oswal Financial Services
TVS Motor delivered an in-line operating performance, excluding the PLI benefit. Adjusted PAT grew 42% YoY to Rs 6.9 billion, broadly in line with our estimate of Rs 6.
75 billion. For FY25, the company posted a strong 30% YoY growth in PAT to Rs 27.1 billion.
While TVS Motor is expected to continue outperforming in the scooters segment, its underperformance in the motorcycles segment remains a concern. Additionally, two-wheeler industry demand has weakened following the festive season.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 ReportThe recently launched Jupiter 110 has been well-received by customers and is likely to support TVS Motor Company Ltd. in gaining market share in scooters over the coming quarters.
However, in motorcycles, for the first time in many years, TVS Motor has underperformed the industry in FY25. More importantly, it has underperformed in the 125cc segment, which has been a key growth driver in recent years. Further, the demand outlook in domestic markets has remained weak following the festive season, while the exports outlook also continues to be uncertain.
Given these factors, we believe TVS Motor at 42x/35.8x FY26E/FY27E EPS appears fairly valued. Reiterate Neutral with a target price of ~Rs 2,720 (based on ~32x FY27E EPS and Rs 212/share for the NBFC).
Click on the attachment to read the full report:TVS Motor Q4 Results: Net Profit Jumps 75%, Revenue Up 17% On EV SalesDISCLAIMERThis 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.
. Read more on Research Reports by NDTV Profit..
