TVS Shares Hit All-Time High After PAT Rises 506% in Q1; Should you Invest?


TVS Motor Company shares raced as a lot as 10 per cent, hitting an all-time excessive of Rs 947.8 on the BSE, on Friday after the motorbike firm reported a higher-than-expected set of numbers for the quarter ended June.

TVS Motor Company stated its consolidated web revenue stood at Rs 297 crore for the primary quarter ended June 30. It had reported a web lack of Rs 15 crore within the COVID-19 hit April-June quarter of the final fiscal.

The first quarter numbers weren’t strictly comparable with the primary quarter of final yr as a result of lockdowns, the corporate acknowledged. It famous that the general two and three-wheeler gross sales, together with exports, rose to 9.07 lakh items within the quarter ended June 2022 in opposition to 6.58 lakh items registered within the quarter ended June 2021.

The motorbike gross sales rose to 4.34 lakh items within the June quarter in comparison with 4.05 lakh items within the year-ago interval. Similarly, scooter gross sales for the June 2022 quarter rose to three.06 lakh items in opposition to 1.38 lakh items within the year-ago interval. TVS stated it recorded the best two-wheeler exports of two.96 lakh items within the first quarter in comparison with 2.9 lakh items a yr in the past, as per the PTI report.

The firm’s board permitted the difficulty of non-convertible debentures (NCDs) aggregating to Rs 125 crore on a non-public placement foundation, it added. Shares of the corporate closed 2.35 per cent up at Rs 869.20 apiece on the BSE.

Should You Invest?

UBS Securities famous the corporate’s stable set of quarterly numbers however added that the very best is but to return. It has raised its earnings per share estimate for FY23 by 14 p.c, and for FY24 by 5 p.c. The brokerage home stated that from the valuation standpoint, TVS Motor is comparatively cheaper than Bajaj Auto and Eicher Motors.

Even as UBS Securities and Reliance Securities are bullish, Citi says ‘promote’ TVS Motor inventory because the aggressive panorama is hard and the corporate has misplaced market share within the home bikes section.

However, Citi identified that April-June earnings have been barely forward of estimate. It additionally famous that the administration outlook is constructive and that the corporate expects quantity to maintain.

Analysts at Prabhudas Lilladher stated:”We consider TVS will be capable of maintain progress momentum and develop forward of the business, pushed by (1) new product launches in ICE & EV segments together with its revamped product portfolio (2) sturdy exports and premiumisation and (3) margin safety by means of price discount efforts and worth hikes. We marginally improve our EPS estimates by 2 per cent every for FY23/24 to issue wholesome 1Q efficiency. Maintain ‘BUY’ with revised goal worth of Rs 950 at 24x on FY24E EPS and Rs 34 for TVS Credit.”

TVS Motor Company is the third largest 2-wheeler firm in India with a income of over ₹18,217 crore (over US$2.9 billion). It has an annual sale of greater than 3 million items and an annual capability of over 4.95 million automobiles. TVS Motor can be the 2nd largest exporter in India with exports to over 60 Countries.

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