TVS Motors - Is it a buy, sell or hold?

TVS Motors

TVS Motor Company Ltd, the flagship company of TVS Group is the third largest two-wheeler manufacturer in India. The company manufactures a wide range of two-wheelers from mopeds to racing inspired motorcycles. The company is having their manufacturing plants at Hosur in Tamilnadu, Mysore in Karnataka and Solan in Himachal Pradesh.

Products

TVS Motors is into two wheeler both geared & non geared and 3 wheelers

• Geared 2 Wheelers are Apache, Phoenix, Maxyr, Star city, Sports
• Non Geared 2 Wheelers are Jupiter, Wego, Zest, Streak, Pep Plus, Stroke
• 3 Wheeler is TVS king

Market Share

Current Market share of TVS is around 14% which the company wants to increase to 18% in next 2 years.

Financials

Sales of TVS have increase from 1988cr to 2683cr Sept 2014 Quarter a growth of 35%

PAT increased from 88cr to 95cr a growth of 9%

Currently the stock is trading at 45PE which is little high. although there are analyst suggesting to buy TVS with a target of 285 against the CMP of 273.

The company is very stable and strong player in the 2wheeler space now as the products of the company are liked by the consumers in India. The company also export auto outside India. which is also positive for the investor.