TVS Motor - Higher competitive pressures impact scooters, motorcycles sales were flat - Motilal Oswal

- TVS Motor reported sales of 165,215 units, a decline of 5.3% YoY and 1.4% MoM.

- While recent launch of Phoenix motorcycle (125cc) helped TVS to sustain motorcycle volumes at 67,489, higher competitive pressures have impacted its scooter sales (flat YoY, +9.8% MoM).

- Sales of mopeds have declined 7.1% YoY (-11.9% MoM) to 62,961 units.

- High margin three wheeler sales have increased by 62.3% YoY (-7.2% MoM) to 4,713 units.

- The company plans to launch a new scooter in 1HFY14 and a new motorcycle in 2HFY14. It also plans upgrades across the product portfolio and will introduce a diesel three-wheeler.

- The stock trades at 7.2x/6.3x FY14E/FY15E Bloomberg Consensus S/A EPS respectively, while at 11.4x/8.3x Consolidated EPS. Not Rated.

Source : Equity Bulls

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