TVS Motor: No room for error

Discussion in 'Must-Read Interviews, Articles & News Items' started by Vidhi Khanna, Mar 31, 2015.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

    Mar 19, 2015
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    Analysts sceptical of company's high valuations, volume and revenue growth prospects

    The TVS Motor scrip fell nearly two per cent on Monday, on worries related to valuations and its ability to match investors' expectations on volumes, revenues and margins. So far, the success of its new launches, strong double-digit volume growth and expected uptick in margins had helped the stock more than triple over the last one year. The stock trades at 21 times its FY16 earnings estimates.

    What will help TVS sustain valuations and meet expectations is its ability to meet its sales targets in the backdrop of a slowing economy and high competition. Some market experts, however, are sceptical.