Please refer to important disclosures at the end of this report
1
TVS Motor Company Limited (TVS Motor) is the third largest two-wheele
r
manufacturer in India, with revenue of `11,244Cr (2015-16). The company has
annual production capacity of 32 Lakh 2 wheelers & 1.2 Lakh 3 wheelers. TVS
Motor has regained the second position in the Indian scooter market that it lost
to Hero MotoCorp about a year ago. Sustaining volumes even afte
r
demonetization helped TVS Motor in its comeback. TVS Motor has also unveiled
a BS IV-compliant variant of its executive scooter Wego in new colours, and an
all-new scooter is to be launched next fiscal. Management commented on
improvement in demand scenario in January, after two months of sluggishness.
Channel inventory is now slowly reverting back to normal levels of ~30 days.
TVS Motor is in unique position with aspirational positioning in the motorcycle
segment (aided by the BMW-Akula and Apache), and also consistent growth in
unchallenged mopeds. The company has introduced new variants in the
domestic markets which have been well received and have helped the compan
y
gain a firm foothold in the market. Going ahead, the company’s ability to
achieve higher market share and improvement in margins would be the ke
y
event to watch out for. The company has reported a healthy dividend payout o
f
26.45%. The company has show 34% CAGR profit growth and also return on
equity growth of 23% in last 3 years. Hence Buy.
BUY
CMP `426
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 57.4
MF / Banks / Indian Fls 14.0
FII / NRIs / OCBs 18.5
Indian Public / Others 10.1
Abs. (%) 3m 1yr 3yr
Sensex 9.9 19.0 36.6
TVS Motor Co. 19.0 48.2 396.2
.
1.0
Reuters Code TVSM.BO
TVSL@IN
1
BSE Sensex 28,840
Nifty 8,900
Face Value (
`
)
Automobile
Market Cap (
`
cr) 20,096
52 Week High / Low 443/278
Avg. Daily Volume 1,72,402
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
TVS Motor Company
Others |
A
utomobile
March 3, 2017
TVS Motor Company|
A
utomobile
March 3, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement TVS Motor Company
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
(
-5% to -15%
)
Sell
(
< -15
)