TVS Motor Q1 - Continuing To Move Up The Margin Curve; EV Portfolio Getting Enriched Further: ICICI Securities

ICICI Securities Report

TVS Motor Company Ltd. continued to move up the profitability curve, delivering yet another quarter of record margin at 11.5%, 20 basis points higher than consensus and up 90 bps/10 bps YoY/QoQ despite the electric vehicle mix increasing 70 bps/10 bps in Q1 FY25.

TVS expects rural demand to recover, and with expectation of normal monsoon, it expects to see strong growth in Q2. We believe TVS has the capability to deliver 12–12.5% Ebitdam in FY25–26E, despite e2W scaling in excess of ~30,000 units/month with 10% CAGR in overall volume in FY24–26E.

Maintain Add on TVS, with DCF based revised target price of Rs 2,596 (earlier Rs 2,245), implying 30 times FY26E standalone earnings per share; target price change is largely driven by valuation rollover.

Click on the attachment to read the full report:

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.