Buy TVS Motor Company, target Rs 725: Sharekhan

Sharekhan has a buy call on TVS Motor Company Ltd. with a target price of Rs 725. The current market price of TVS Motor Company Ltd. is Rs 584.4 Time period given by the brokerage is a year when TVS Motor Company Ltd. price can reach defined target. TVS Motor Company Ltd., incorporated in 1992, is a largecap company with a market cap of Rs 27091.84 crore.

Investment rationale by Sharekhan

Outlook-Amongst the fastest-growing 2W company; Remains our preferred pick in the 2W space: With new launches and enhanced distribution reach, TVSM is well poised to gain market share in the 2W space. This coupled with margin expansion would lead to 39% earnings CAGR for TVSM over FY2018-FY2020. TVSM is the fastest-growing company in the 2W segment and remains our preferred pick in the space.


Valuation-Retain estimates; Maintain Buy with unchanged PT of Rs. 725: We have maintained our earnings estimates for TVSM for FY2019 and FY2020. We retain our Buy rating on the stock.