On Wednesday, ICICI Securities up to date its outlook on TVS Motor Co Ltd (TVSL:IN) shares, growing the value goal to INR 2,596 from the earlier INR 2,245. The agency maintained its Add (2) ranking on the inventory.
This resolution follows TVS Motor’s latest efficiency, the place the corporate reported a report margin of 11.5%, which is a 0.2% improve from the consensus and a 0.9% year-over-year enchancment.
The margin additionally noticed a 0.1% rise from the earlier quarter regardless of the electrical car (EV) combine rising by 0.7% and 0.1% within the first quarter of the monetary 12 months 2025.
The analyst from ICICI Securities famous TVS Motor’s constant progress up the profitability curve, emphasizing the corporate’s expectation for rural demand restoration and powerful progress within the second quarter, bolstered by the anticipation of a standard monsoon.
The agency’s evaluation means that TVS Motor is well-positioned to realize an EBITDA margin (EBITDAM) of 12-12.5% within the fiscal years 2025-2026. This projection relies on the corporate’s potential to scale electrical two-wheeler (e2W) manufacturing to over 30,000 models per 30 days and a compound annual progress charge (CAGR) of 10% in general quantity from 2024 to 2026.
The revised value goal of INR 2,596 is primarily pushed by a valuation rollover, in keeping with the analyst’s assertion. The goal value implies a 30 instances a number of of the corporate’s standalone earnings per share (EPS) for the fiscal 12 months 2026.
The analyst’s outlook displays a confidence in TVS Motor’s strategic initiatives and its potential for sustained monetary efficiency within the coming years.
TVS Motor’s latest quarter’s efficiency, mixed with ICICI Securities’ constructive outlook, suggests a good trajectory for the corporate.
The up to date value goal and maintained ranking are reflective of the corporate’s continued efforts to boost profitability and seize progress alternatives, significantly within the electrical car section.
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