- TVS Motor’s net income reached 7.79 billion rupees, exceeding estimates by 35% year-over-year (y/y).
- Revenue also surpassed expectations, hitting 100.8 billion rupees, a 20% increase y/y.
- Total costs rose by 19% y/y, amounting to 90.6 billion rupees.
- Other income decreased by 5.5% y/y to 342.9 million rupees.
- Earnings before interest, taxes, depreciation, and amortization (EBITDA) were reported at 12.63 billion rupees, 32% higher y/y and above estimates.
- The EBITDA margin improved to 12.5%, up from 11.5% the previous year.
- The company has approved raising 5 billion rupees through non-convertible debentures.
- Market analysts have varied opinions on the stock: 22 buy recommendations, 11 hold, and 8 sell.
TVS Motor on Smartkarma
On Smartkarma, investment analyst Sreemant Dudhoria, CFA, recently published an insightful report on TVS Motor with a bearish lean. The report titled “TVS Motor Q4FY25 Review: Premium Valuation Backed by Strategic Execution or Investor Over-Optimism?” highlights the company’s strong revenue growth and stable margins in Q4FY25. TVS Motor’s performance was driven by EV sales and the strength of its premium products, such as the Apache and Ntorq models. Despite this positive performance, the stock’s valuation at 58x P/E TTM EPS raises questions about the need for flawless execution to justify its premium over peers. Analyst Dudhoria emphasizes the importance of sustained outperformance in areas like EV adoption, export monetization, and premium product cycles without margin erosion.
A look at TVS Motor Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
TVS Motor Company Limited’s overall outlook, as indicated by the Smartkarma Smart Scores, shows a company with a promising long-term future. With strong scores in Growth and Dividend, the company is positioned well for expansion and rewarding its investors. However, areas such as Value, Resilience, and Momentum have room for improvement, suggesting a somewhat mixed performance in these aspects. Despite this, TVS Motor Company’s focus on manufacturing motorcycles, mopeds, and scooters, along with offerings in other engine-related products, highlights its commitment to serving customers in India.
Looking ahead, TVS Motor’s above-average scores in Growth and Dividend signal potential for increasing market share and providing consistent returns to shareholders. By enhancing Value, Resilience, and Momentum factors, the company could further solidify its position in the industry. With a strategy geared towards innovation and meeting the demands of the Indian market, TVS Motor Company Limited remains a relevant player in the automotive sector with opportunities for growth and development.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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