Accumulate TVS Motor Company; target of Rs 4650: Prabhudas Lilladher

Moneycontrol • 3 days ago

Original source

Key Investment Pillars

  • TVS Motor is expected to outpace the 2W and 3W industry growth in domestic and international markets, driven by strong scooter sales and increasing EV penetration.
  • The company's focus on cost reduction, pricing, and operating leverage is expected to improve margins.
  • TVS Motor's international business growth is driven by demand in key markets and continued distribution across Africa, LatAm, and Asia.
  • The demerger of the consumer finance business is expected to unlock shareholder value.

Thesis Validation Checklist

  • Investors should watch for TVS Motor's ability to maintain its market share and pricing power in the face of increasing competition.
  • The company's progress in expanding its EV capacity and improving its profitability will be key to sustaining growth.
  • Management's ability to balance demand and supply chain health will be crucial in maintaining inventory levels and mitigating risks.
  • The success of the demerger of the consumer finance business and its impact on shareholder value will be an important signal.