Dolat Capital recommended accumulate rating on TVS Motor Company with a target price of Rs 568 in its research report dated October 24, 2018.
Dolat Capital's research report on TVS Motor Company
TVS Motor (TVSL) reported good set of numbers with top line growth of 23% supported by 15% volume growth which was largely led by exports. Margin profile upward trend is a positive surprise and we expect margins to sustain / improve from these levels. Improvement in product mix coupled with operational efficiency will support / expand margin profile. TVSL volume growth is expected to remain in mid-teens and will continue to outperform the industry. This would be driven by the strong portfolio of products across segments.
Outlook
Short term macro factors can weigh down on valuations, however, we feel that strong operating profile will ensure that TVSL valuations on a longer horizon will be at a significant premium to peers. We reiterate our Accumulate recommendation with a target price of ` 568.
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