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TVS Motor
TVS Motor’s (TVSL) 2QFY2012 operating results were ahead of our estimates,
driven largely by better-than-expected margin performance. TVSL registered strong
23.2% yoy (14.1% qoq) growth in its top-line to `1,992cr, in-line with our
estimates, led by healthy 15.1% yoy (12.7% qoq) growth in total volumes and
strong 6.7% yoy (1.5% qoq) growth in net average realization. The scooters
segment continued to drive total volume growth, posting a 26.6% yoy (34% qoq)
growth. The motorcycle segment witnessed a healthy 14.2% yoy (11% qoq)
increase in volumes. EBITDA margin came in 46bp ahead of our estimates at
6.9%, witnessing an expansion of 29bp yoy (24bp qoq). EBITDA margin expansion
was aided by improvement in net average realization and a 120bp yoy savings in
other expenditure. However, high raw-material cost (raw-material to sales ratio at
75.5% vs. 73.7% in 2QFY2011 and 76.4% in 1QFY2012) restricted further
expansion in margins. Led by strong operating performance and decline in interest
cost, net profit posted better-than-expected growth of 39.7% yoy (30.1% qoq) to
`77cr.
At `66, TVSL is trading at 10.8x FY2013E earnings. We retain our Accumulate
rating on the stock with a target price of `74.
Vesuvius India (VIL) - 3QCY2011
VIL reported topline growth by 22% yoy to `138cr in 3QCY2011 from `114cr in
3QCY2010 while margins contracted by 175bps due to increase in other
expenses. PAT grew by 12% to `14.5cr as compared to `13cr in same quarter last
year, whereas on a qoq basis, it remained flat. We maintain our Buy rating on the
stock with a target price to `448 based on a target PE of 14x its CY2012E
earnings.
Goodyear India – 3QCY2011
Goodyear India’s revenue grew by 16% yoy to `395cr in 3QCY2011 from `341cr
in 3QCY2010. OPM for the quarter contracted by 358bp yoy to 7.1% in
3QCY2011 (9.3% in 3QCY2010) due to increased raw-material cost; whereas on
a qoq basis, OPM increased marginally by 62bp from 6.5% in 2QCY2011 due to
stable rubber prices. PAT for the quarter dipped by 16% yoy to `16cr as compared
to `19cr in 3QCY2010 on account of higher depreciation and interest costs.
We have revised our target price downwards to `367, based on target PE of 8x its
CY2012E earnings with a Buy rating on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
TVS Motor
TVS Motor’s (TVSL) 2QFY2012 operating results were ahead of our estimates,
driven largely by better-than-expected margin performance. TVSL registered strong
23.2% yoy (14.1% qoq) growth in its top-line to `1,992cr, in-line with our
estimates, led by healthy 15.1% yoy (12.7% qoq) growth in total volumes and
strong 6.7% yoy (1.5% qoq) growth in net average realization. The scooters
segment continued to drive total volume growth, posting a 26.6% yoy (34% qoq)
growth. The motorcycle segment witnessed a healthy 14.2% yoy (11% qoq)
increase in volumes. EBITDA margin came in 46bp ahead of our estimates at
6.9%, witnessing an expansion of 29bp yoy (24bp qoq). EBITDA margin expansion
was aided by improvement in net average realization and a 120bp yoy savings in
other expenditure. However, high raw-material cost (raw-material to sales ratio at
75.5% vs. 73.7% in 2QFY2011 and 76.4% in 1QFY2012) restricted further
expansion in margins. Led by strong operating performance and decline in interest
cost, net profit posted better-than-expected growth of 39.7% yoy (30.1% qoq) to
`77cr.
At `66, TVSL is trading at 10.8x FY2013E earnings. We retain our Accumulate
rating on the stock with a target price of `74.
Vesuvius India (VIL) - 3QCY2011
VIL reported topline growth by 22% yoy to `138cr in 3QCY2011 from `114cr in
3QCY2010 while margins contracted by 175bps due to increase in other
expenses. PAT grew by 12% to `14.5cr as compared to `13cr in same quarter last
year, whereas on a qoq basis, it remained flat. We maintain our Buy rating on the
stock with a target price to `448 based on a target PE of 14x its CY2012E
earnings.
Goodyear India – 3QCY2011
Goodyear India’s revenue grew by 16% yoy to `395cr in 3QCY2011 from `341cr
in 3QCY2010. OPM for the quarter contracted by 358bp yoy to 7.1% in
3QCY2011 (9.3% in 3QCY2010) due to increased raw-material cost; whereas on
a qoq basis, OPM increased marginally by 62bp from 6.5% in 2QCY2011 due to
stable rubber prices. PAT for the quarter dipped by 16% yoy to `16cr as compared
to `19cr in 3QCY2010 on account of higher depreciation and interest costs.
We have revised our target price downwards to `367, based on target PE of 8x its
CY2012E earnings with a Buy rating on the stock.
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