TVS Motor Company Targeted at Rs 3950 by Prabhudas Lilladher: Buy Recommendation
TVS Motor Company Reports Mixed Q4 Numbers, Eyes Growth Amid Uncertainties
TVS Motor Company, a leading two-wheeler and three-wheeler manufacturer, has reported a mixed set of quarterly numbers for Q4. The company's revenue was in line with expectations, while its margins expanded, beating market estimates. However, the company missed on its profit after tax (PAT) numbers. The management of TVS Motor Company aims to outperform the industry in the scooter segment, electric two-wheelers (e2Ws), and exports, which it expects to drive growth in the fiscal year 2027.
The company continues to invest in technology, research and development (R&D), innovation, and brand building, taking calculated growth measures across categories amid geopolitical uncertainties. TVS Motor Company's focus on innovation and R&D is expected to drive growth in the coming years.
Outlook and Recommendations
We estimate that TVS Motor Company's revenue, earnings before interest and tax (EBITDA), and adjusted earnings per share (EPS) will grow at compound annual growth rates (CAGRs) of 15.4%, 16.0%, and 20.4%, respectively, over the fiscal years 2026-2028. Our estimates are based on a volume growth CAGR of 10.3% and a realization growth CAGR of 4.6%.
| Category | FY26E | FY27E | FY28E |
|---|---|---|---|
| Revenue Growth | 12.5% | 14.7% | 15.4% |
| EBITDA Growth | 12.8% | 15.5% | 16.0% |
| Adjusted EPS Growth | 17.3% | 20.2% | 20.4% |
We retain our 'ACCUMULATE' rating for TVS Motor Company with a price target of INR 3,950, valuing the stock at 35x price-to-earnings (P/E) ratio based on fiscal year 2028 EPS. We also maintain a price target of INR 87 for TVS Credit Services Ltd.
Investor Takeaway
Retain 'ACCUMULATE' rating with TP of INR3,950.
More in Market
Market Analysis: Key Stocks to Watch - Narayana Hrudayalaya, ABB India, Federal Bank, Premier Energies, Ather Energy and More
FirstClub Secures $55 Million in Funding from Peak XV, Sofina, and Other Investors 9 Months After $22 Million Series A Round
Global Markets: Key Indicators to Monitor in Today's Trading Session
