TVS Motor Company Ltd., incorporated in the year 1992, is a Large Cap company (having a market cap of Rs 26692.77 Crore) operating in Auto sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 6140.54 Crore, up .47 % from last quarter Total Income of Rs 6111.56 Crore and up 48.73 % from last year same quarter Total Income of Rs 4128.67 Crore. Company reported net profit after tax of Rs 317.06 Crore in latest quarter.
Investment Rationale
TVSL’s volume growth is now falling in line with the domestic market, as the portfolio gaps have largely been filled, but the ramp-up in exports supports overall growth. However, it is seeing benefit from economies of scale and operating leverage, resulting in EBITDA margins trending toward the double-digit range. Valuations at 22.3x/17.1x FY22E/FY23E EPS largely reflect strong earnings growth as well as the increasing risk from EVs. It maintains Neutral, with TP of ~INR625 (~18x Mar’23 EPS + INR32 for NBFC).
Promoter/FII Holdings
Promoters held 52.3 per cent stake in the company as of June 30, 2021, while FIIs held 14 per cent, DIIs 24.3 per cent and public and others 9.5 per cent.
(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.
