Citi reduced price target to Rs 430 from Rs 455 earlier, implying nearly 2 percent potential downside from current levels
TVS Motor Company shares fell nearly a percent intraday on June 26 after global brokerage house Citi maintained sell rating on the stock.
The research firm also reduced price target to Rs 430 from Rs 455 earlier, implying nearly 2 percent potential downside from current levels.
Auto sector is one of biggest losers in the last one year because of lower sales volumes amid liquidity crisis and higher purchasing cost. The stock itself fell 27 percent in last one year and it was quoting at Rs 436.25, down Rs 1.40, or 0.32 percent on the BSE at 1022 hours IST.
"We cut gross margin estimates for higher raw material prices and EPS estimates by 2-6 percent for FY20-22," Citi said, adding it also reduced premium to long-term trading average to 15 percent from 20 percent.
