04 October 2010

BUY TVS Motors – Fifth consecutive MoM growth says JM financials

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TVS Motors – Fifth consecutive MoM growth
􀂄 Life high volumes of c.185,000 units; up 45% since January 2010.
􀂄 Highest MoM growth in the space driven by launches and production ramp-up
􀂄 New launches well received in the market with Wego doing extremely well.
􀂄 Expect three-wheeler volumes of 3,700 units.
􀂄 Strong growth (75% earnings CAGR) and attractive valuation of 9x FY12E EPS.
Maintain BUY with a street high target price of `98 (37% upside).

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