Buy TVS Motor Company, target price Rs 1303: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on TVS Motor Company with a target price of Rs 1303. The current market price of TVS Motor Company is Rs 1238.05.

TVS Motor Company, incorporated in the year 1992, is a Large Cap company (having a market cap of Rs 58860.92 Crore) operating in Auto sector.

TVS Motor Company key Products/Revenue Segments include Automobile - 2 & 3 Wheelers, Other Operating Revenue, Sale of services for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 8098.54 Crore, up .29 % from last quarter Total Income of Rs 8075.06 Crore and up 22.73 % from last year same quarter Total Income of Rs 6598.75 Crore. Company has reported net profit after tax of Rs 340.16 Crore in latest quarter.

The company’s top management includes Mr.Venu Srinivasan, Mr.R Gopalan, Mr.Hemant Krishan Singh, Mrs.Lalita D Gupte, Dr.Lakshmi Venu, Mr.C R Dua, Mr.T Kannan, Mr.H Lakshmanan, Mr.K N Radhakrishnan, Mr.Sudarshan Venu, Prof.Sir Ralf Dieter Speth, Mr.Kuok Meng Xiong. Company has V Sankar Aiyar & Co. as its auditors. As on 31-03-2023, the company has a total of 48 Crore shares outstanding.

Investment Rationale
The brokerage maintains a Buy rating on the stock with a unchanged price target (PT) of Rs. 1,303in expectation of 24.5% earning over FY23-25E, EBITDA margin expansion, successful entry in electric 3 wheeler space, introduction of EVs in export market and recovery in export volumes in medium term.

Promoter/FII Holdings
Promoters held 50.27 per cent stake in the company as of 31-Mar-2023, while FIIs owned 17.02 per cent, DIIs 24.38 per cent.