IGI Logo

Below est.; wholesales fell 13.4% CAGR (v/s Apr’19)

2W/3W volumes decline 12.2%/1.2% CAGR (v/s Apr’19)

* TVSL’s wholesales declined by 13.4% CAGR (v/s Apr’19) to 239k units (v/s est. 259.1k units).

* 2W volumes fell 12.2% CAGR (v/s Apr’19) to 226.1k units. Domestic 2Ws volumes declined 26.3% CAGR (v/s Apr’19) to 131.4k units, whereas 2W exports grew 35.3% CAGR to 94.8k. We estimate 2W volumes to grow by ~21.3% in FY22E, implying a residual growth of 13.9%, or a run-rate of ~302.3k units.

* 3W volumes declined 1.2% CAGR (v/s Apr’19) to 12.8k units (v/s est. 14k units). We estimate total 3W volumes to grow by 33% in FY22E, implying a residual growth of 24.4%, or a run-rate of ~13.8k units.

* Overall volumes are estimated to grow by ~21.8% in FY22E, implying a residual growth of 14.3%, or a run-rate of 316.1k units.

* The stock trades at 28.4x/20.8x FY22E/FY23E EPS. Maintain Neutral.

To Read Complete Report & Disclaimer Click Here

For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH000000412

Above views are of the author and not of the website kindly read disclaimer