TVS Motor share price soars 13% on strong results; Jefferies raises target price to Rs 800
TVS Motors 4Q volumes fell 6% QoQ but EBITDA rose 5% QoQ (20% above JEFe) as margins expanded 60 bps QoQ to 10.1% (a new high). It delivered 2-6% EBITDA/PAT growth in FY21 despite Covid and rising input costs. Indian 2W demand has weakened amid Covid spike, but cyclical recovery in FY 22-23 is seen; exports are improving too. TVS Motors is also raising its focus on EVs with new products planned in FY22
Jefferies highlights that Indian auto demand is likely to be under pressure for the next few months due to the recent spike in Covid: Reuters