Sharekhan recommends buying this auto stock for 19% back



Target price

TVS Motor’s current market price (CMP) is Rs. 673. Brokerage firm Sharekhan Recommends has estimated a target price for the stock at Rs. 803. Therefore, the stock is expected to generate a return of 19. 3% over a target period of one year.

Outlook for actions
Current Market Price (CMP) Rs. 673
Target price Rs. 803
1 year of returns 19.30%
Business performance

Business performance

TVS has gained market share in the two-wheeler industry, with the number increasing from 11.8% in fiscal 2014 to around 14.2% in the first half of fiscal 2022, and the company has strengthened its presence in the category of high-performance scooters and motorcycles with a share of mopeds dropping from 41% in FY2014 to 26% in FY2021. Driven by a strong volume outlook and expanding margins, Sharekhan expects robust earnings growth to 51.9% CAGR during FY21-23E.

Sharekhan comments

Sharekhan comments

Sharekhan said: “The company has defined a strategy to increase its export volumes over the next 4 to 5 years by consolidating its position, where the presence of the company and entering new markets. She expects the demand for scooters to be robust and should return to the category share. from 30 to 32% in industry. The company added: “TVSM and BMW Motorrad have deepened their relationship and extended their partnership to jointly develop new platforms.”

About the company

About the company

TVS is the third largest two-wheeler manufacturer in India. Their motorcycles and scooters respectively contribute 40% and 33% of the volumes. TVS also manufactures 3W (5% of global volumes) mainly for the export market. TVS focuses on the overseas market which contributes around 25% of the overall volumes. The company continues to focus on electric vehicles and has shared its investment plan of Rs. 1,000 crore in electric vehicles.

Warning

The above stock was chosen from Sharekhan’s brokerage report. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author and the brokerage are not responsible for any losses caused as a result of decisions based on the article.


Previous Reasons you might need to apply for a payday loan
Next ABANDONED MOTOR VEHICLE ADVERTISING NOTICE (TOWING OR STORAGE COMPANY) | Public hearing | Opinion