“TVS Motor's 3Q EBITDA and PAT grew 16-22% YoY and were 4-7% above Jefferies estimares. We believe TVS should be a key beneficiary of Indian 2W demand recovery. TVS has turned aggressive in EVs, leading among incumbents in E2Ws with 17% market share in Jan, and is planning to launch multiple products in next 18 months. Our FY24-25E EPS is 14-15% above street. We expect TVS' earnings to almost treble over FY22-25," said Jefferies while retaining its Buy on the auto stock with a target price of ₹1,550.
Brokerage Nirmal Bang has reiterated its view that TVS is a front runner in the electric vehicle (EV) space among the incumbent OEMs as it has chalked out aggressive plans for the EV business, including a series of new model launches over the next 12-18 months, monetization of the EV arm and investments in technology to cover the entire spectrum of EV product portfolio.
In 3QFY23, TVS sold 29k EV units across three different variants of iQube and expects to double its volume in 4QFY23. It expects to cross 1 lakh plus EV sales in FY23. TVS clocked a market share of 14.5% in EVs in 3QFY23 and EVs contributed 10% to scooter volume. The company also highlighted that it plans to launch an Electric 3W in the coming months.
“We expect TVS to continue to outperform the 2W industry growth with a volume CAGR of 13% over FY22-FY25E. We also factor in margin expansion of from the current level till FY25, owing to RM cost tailwinds and product premiumisation. We see TVS as the technology leader among its listed peers. Building in the strong prospects for the EV business, we maintain BUY on TVS Motor shares at a TP of ₹1,197," Nirmal Bang added.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
