Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
3QFY2011 Result Reviews
TVS Motor
For 3QFY2011, TVS Motor (TVS) reported 51.1% yoy growth in its top line to `1,647cr,
which was above our expectation of `1,570cr and largely aided by a ~39.9% yoy jump in
volumes. Net average realisation for the quarter increased by ~7.6% yoy to `30,785
(`28,602 in 3QFY2010), largely due to a richer product mix and higher motorcycle and
three-wheeler volumes during the quarter. EBITDA margin came in 85bp below our estimate
at 6.1%, a fall of 40bp qoq and 12bp yoy. Raw-material cost for the quarter increased by
almost 318bp yoy and 91bp qoq. However, about 200bp yoy savings on other expenditure
helped TVS to restrict the further fall at the EBITDA level. Net profit grew by 136.9% yoy to
`55.8cr (`23.5cr in 3QFY2010), as against our estimate of `51.6cr, largely aided by
improved operating performance on a yoy basis, higher other income and lower interest cost
for 3QFY2011. At `62, the stock is trading at reasonable valuations of 13.6x FY2011E and
11x FY2012E earnings. Owing to the recent decline in the stock price, we recommend
Accumulate on the stock with a Target Price `71.
India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
3QFY2011 Result Reviews
TVS Motor
For 3QFY2011, TVS Motor (TVS) reported 51.1% yoy growth in its top line to `1,647cr,
which was above our expectation of `1,570cr and largely aided by a ~39.9% yoy jump in
volumes. Net average realisation for the quarter increased by ~7.6% yoy to `30,785
(`28,602 in 3QFY2010), largely due to a richer product mix and higher motorcycle and
three-wheeler volumes during the quarter. EBITDA margin came in 85bp below our estimate
at 6.1%, a fall of 40bp qoq and 12bp yoy. Raw-material cost for the quarter increased by
almost 318bp yoy and 91bp qoq. However, about 200bp yoy savings on other expenditure
helped TVS to restrict the further fall at the EBITDA level. Net profit grew by 136.9% yoy to
`55.8cr (`23.5cr in 3QFY2010), as against our estimate of `51.6cr, largely aided by
improved operating performance on a yoy basis, higher other income and lower interest cost
for 3QFY2011. At `62, the stock is trading at reasonable valuations of 13.6x FY2011E and
11x FY2012E earnings. Owing to the recent decline in the stock price, we recommend
Accumulate on the stock with a Target Price `71.
No comments:
Post a Comment