Views on TVS Motors 2QFY2016 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on TVS Motors 2QFY2016 Results:

"TVS Motors 2QFY2016 results were significantly ahead of our estimates owing to robust operating performance. TVSM surprised positively reporting highest ever operating margins of 7.4% in about five years. Revenues grew 8% yoy to INR 2,881 cr coming marginally ahead of our estimates. While the volumes were flat, the realization per vehicle grew by about 7% coming ahead of our estimates. Better product mix (increase in the non moped sales) led to better realization. Operating margins at 7.4% were at record highs and significantly better than our estimates of 6%. Soft commodity prices coupled with better vendor negotiation led to the margin boost. Given the robust operating performance, the Net Profit at INR116 cr was way ahead of our expectations of INR91 cr. We currently have NEUTRAL rating on the stock but would review our estimates post management interaction."

Shares of TVS MOTOR COMPANY LTD. was last trading in BSE at Rs.271.8 as compared to the previous close of Rs. 276.15. The total number of shares traded during the day was 790480 in over 14350 trades.

The stock hit an intraday high of Rs. 275.35 and intraday low of 266. The net turnover during the day was Rs. 214598390.

Source : Equity Bulls

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