Motilal Oswal recommended Neutral rating on TVS Motor Company with a target price of Rs 392 in its research report dated July 30, 2020.
Motilal Oswal 's research report on TVS Motor Company
TVS Motor Company (TVSL)’s operating performance was supported by lower other expenses. It expects cost-cutting efforts to boost margins, with volume recovery and the Premium portfolio outperforming. We upgrade our FY21/FY22E EPS by 2%/5% to factor volume recovery. Maintain Neutral, with TP of INR392 (~18x Sep’22 EPS + INR40 for NBFC).
Outlook
We upgrade our FY20/FY21 EPS by 2%/5% to INR10.3/17.5 to reflect volume recovery. Valuation at 39.1x/22.9x FY21E/FY22E EPS already reflects the large part of earnings recovery. Maintain Neutral, with TP of ~INR392.
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