Buy TVS Motor; target of Rs 5600: Emkay Global Financial

Moneycontrol • 3 days ago

Original source

Key Investment Pillars

  • TVS Motor's revenue growth is driven by a 28% yoy volume increase and 5% sequential rise in ASPs, with EBITDA up 47% yoy.
  • The company's market share gains, particularly in the domestic 2W market, are a key driver of growth.
  • TVS Motor's EV momentum is strong, with a 129% yoy volume growth, and the company is well-positioned to benefit from India's EV transition.
  • The company's management expects healthy 2W demand and has guided for good single-digit growth in the ICE segment in 2H.

Thesis Validation Checklist

  • Investors should watch for TVS Motor's ability to sustain its market share gains and premiumization-led growth.
  • The company's EV momentum and its ability to navigate commodity price pressures will be key factors to monitor.
  • TVS Motor's management has guided for a strong performance in 2H, and investors should watch for the company's ability to deliver on these expectations.