TVS MOTOR

Aggressive product launches, foray into new markets and investments in newer and cleaner technologies with profitable growth would be key growth drivers for TVS Motor (TVSM). New launches and investments in branding would boost TVSM’s market share in India and global markets. Its EV products are doing well and is likely to grow robustly, led by increasing penetration and aggressive launches planned in EV segment over the next 8-12 quarters. Earnings growth is expected to clock a robust 48.5% CAGR during FY2022-FY2024E, led by 19% revenue growth and a 220-bps expansion in EBITDA margin, with RoE to sustain at over 25%. Stock trades at P/E multiple of 24.9x and EV/EBITDA multiple of 14.4x its FY2024E estimates.