TVS Motors: Fundamentals Not Strong Enough to Justify Expensive Multiples

Court Stays Ban on Pillion Riding in K'taka that Was Liable to Affect 500k Units Across 3 Companies

India: Government In "RURAL" Overdrive, Risks and the Opportunities

Equity Analyst, LightStream Research

Chacko Jacob

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

Higher Proportion of Scooters in Total Sales to Drive up Realisations For decades, the moped, a cross between a bicycle and a scooter, has been providing the last mile connectivity to rural India. Eventually, the number of manufacturers dwindled as they abandoned the moped for more profitable alternatives, leaving TVS as the sole manufacturer of the moped in India. The company sold nearly 75,000 a month in FY2017, much more than its other two segments comprising scooters and motorcycles. The…

Higher Proportion of Scooters in Total Sales to Drive up Realisations For decades, the moped, a cross between a bicycle and a scooter, has been providing the last mile connectivity to rural India. Eventually, the number of manufacturers dwindled as they abandoned the moped for more profitable alternatives, leaving TVS as the sole manufacturer of the moped in India. The company sold nearly 75,000 a month in FY2017, much more than its other two segments comprising scooters and motorcycles. The…

TVS Motors: Sales Boosted by Revival in Rural Sector and Traction in New Export Markets