TVS Motor Company Q2 Results Review


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TVS Motor Company Ltd.’s Q2 numbers were broadly in line with estimates. Gross profit per vehicle were up 5.8% QoQ and Ebitda grew 23% QoQ to Rs 7.3 billion with margin at 10.2%.

The management sounded confident on both demand and margin, double digit margin is sustainable and expected to inch up in coming quarter due to premiumisation with ramp up in volume of Apache, Ronin, Ntorq, Raider and Jupiter 125.

We value internal combustion engine business Rs 915 (based on 20 times of FY25E earnings per share) plus value of TVS Credit Services at Rs 28/share and electric vehicles business Rs 205 (20 times FY27E enterprise value Ebitda). It seems all near term positives are priced in.

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