Monday, March 24, 2014

TVS Motors - Buy

Our research team has analyzed the performance of TVS Motors in the past month has shown good accumulation and consolidation around 80-87 levels and is poised to jump sharply in the coming days.

Company Background :

TVS Motor Company Limited is a two-wheeler manufacturer in India. The Company manufactures a range of two-wheelers from mopeds to racing motorcycles. The Company’s products include domestic range of two-wheelers, three-wheelers and international range of two-wheelers. The Company’s motorcycles products include Apache RTR 180, Flame DS 125, Flame, TVS Jive, StaR City, Sports. 

The Company’s Variomatic Scooters products include TVS Wego, Scooty Streak, Scooty Pep+, Scooty Teenz. The Company’s Mopeds include TVS XL Super and TVS XL Heavy Duty.  The company has been posting good set of numbers QoQ the sales in the month of February 2014 has been quite impressive and the positive trend continues for Q4 of current fiscal.

TVS Motor Company Ltd announced its Q3 FY14 results on 29th January 2014. The company's Net sales increased by 3.48% and 12.96% on QoQ and YoY basis respectively. EBITDA increased by 15.41% on YoY basis. EBITDA Margin of the company increased from 5.87% to 6.00% on YoY basis. PAT excluding excp items increased by 17.49% and 31.17% on QoQ and YoY basis respectively.

Price Performance :

The stock jumped more than 50% during the last 4 month period and is now poised to scale newer heights.  From around Rs.60 levels it is hovering near 3 digit Rs.100 we expect a positive break out leading the stock to move beyond Rs.130 in coming weeks.  With the Q4 results likely to be released shortly indicating strong volume and revenue growth, punters have started accumulating this stock on all declines.

Recommendation :

We strongly recommend both the long term and short term investors to get into the stock on all declines, keeping a strict loss around Rs.87 and continue to hold for a target price of Rs.130

Equity Research Analyst

Ravina Consulting
No.24 Pattamal Plaza
3rd Cross Kamannahalli

For Stock Advise + Ideasraghav@ravinaconsulting.comTalk / SMS 08105737966

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