TVS Motors - Q1FY14 Result Update - Kotak

TVSM's 1QFY14 revenues came in lower YoY on the back of dip in volumes. EBITDA margin at 5.6% was down 20 bps YoY but slightly ahead of expectation. Reduction in interest cost and increase in other income helped the company post marginal 1.5% YoY growth in net profit. On the profitability front, numbers were better than expectation. Weakness in 2W demand continues to persist and we thereby lower our FY14 volume estimates for the company. Having said that, we expect the new launches/ upgrades should help volumes to improve from current levels.

We retain our BUY rating on the stock with revised price target of Rs44 (earlier Rs49).

Source : Equity Bulls

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