Apr'25 View on TVS Motor Company Ltd

TVS Motor Company Ltd (TVSM) is engaged in manufacturing two-wheelers and its accessories; it currently manufactures a wide range of two-wheelers and three-wheelers. After falling from 3,000 level, the stock has bounced from 2,240 level and now at 2400 and looks to scale back at 3,000 level based on following inputs Positives: • Revenues increased 10% yoy (1% above our estimates). • EBITDA margin was at 11.9% (70 bps yoy, 20 bps qoq), in line with our estimates. • We believe the company’s medium-term growth prospects remain strong. • Q3FY25 standalone EBITDA came in line with our estimates. • We expect the domestic 2W demand trends to moderate in the coming quarters. • We believe TVS Motors would continue to outperform and gain market share across most product segments. • We expect earnings per share (EPS) to grow by 14.3% in FY26E and 17.9% in FY27E.