Buy TVS Motor Company, target price Rs 788: Centrum Broking

Centrum Broking has buy call on TVS Motor Company with a target price of Rs 788. The current market price of TVS Motor Company is Rs 650.05. Time period given by analyst is one year when TVS Motor Company Ltd. price can reach defined target.

TVS Motor Company Ltd., incorporated in the year 1992, is a Large Cap company (having a market cap of Rs 30892.54 Crore) operating in Auto sector.

TVS Motor Company Ltd. key Products/Revenue Segments include Automobile - 2 & 3 Wheelers, Accessories & Spares, Other Operating Revenue, Sale of services for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 6606.22 Crore, up 1.77 % from last quarter Total Income of Rs 6491.18 Crore and up 8.09 % from last year same quarter Total Income of Rs 6111.56 Crore. Company reported net profit after tax of Rs 231.46 Crore in latest quarter.

Investment Rationale
Total volumes de-grew 2.5% QoQ. Export share improved QoQ at 36.8%. Its 2W mix was better with lower share from mopeds. The brokerage expects revenue/PAT to grow -1% /1.6% QoQ. It expects EBITDA margin at 10.2%, up 20bp QoQ on better mix.

Promoter/FII Holdings
Promoters held 52.26 per cent stake in the company as of 31-Dec-2021, while FIIs owned 12.86 per cent, DIIs 25.46 per cent.