TVS Motor shares rise 3% after Q1 results. Should you buy, sell or hold?
Its revenue from operations during the reporting quarter rose 20% year-on-year (YoY) to Rs 7,218 crore. The company posted its highest-ever operating EBITDA at Rs 764 crore, with a growth of 27% for the first quarter. It was Rs 599 crore in the corresponding quarter of the previous year.
EBITDA margins improved 60 basis points at 10.6% against 10% in the year-ago period. The overall two- and three-wheeler sales, including exports, grew 5% to 9.53 lakh units in the quarter ended June, compared with 9.07 lakh units in the last year period. At 10.56 am, the scrip was trading 2.9% higher at Rs 1,343.7 on BSE.
On a year-to-date basis, the stock has surged 25%, while it has risen 54% in the last year.Should you buy, sell or hold TVS Motor Company stock? Here's what analysts say:HDFC Securities Brokerage firm HDFC Securities maintained its 'Buy' rating on TVS Motor with a revised target price of Rs 1,459 (Rs 1,342 earlier. «TVS Motors’ Q1 PAT came in ahead of estimates due to higher other income although its margins came in line with our estimate at 10.6%. This performance is commendable, given that it includes the 30bps impact of price protection for eligible iQube customers and the ramp-up of iQube volumes,» it said.Motilal Oswal Motilal Oswal reiterated a 'Neutral' rating on TVS Motor with a target price of Rs 1,300.
«Volume growth is likely to be driven by a recovery in the domestic 2W market, new products, and a recovery in exports. TVSL is enjoying the benefits of economies of scale and operating leverage, which help it sustain an EBITDA margin at a double-digit level. However, TVSL earns 40% of its overall EBITDA from the domestic scooter business, making it vulnerable to EV disruption,» it said.Nuvama Nuvama retained
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