Impressive performance at TVS Motor due to higher exports and good margin management and product premiumization, but e-Scooters are a big threat

Strides Pharma working on may initiatives to scale up operations and build value; but short term performance is disappointing
September 7, 2021
Strong position in Latin America with end to end distribution and scope to grow revenues from US generics market make Caplin Point and attractive pharma play
November 18, 2021

TVS Motors, India’s leading two-wheeler company has an excellent track record in new models and presence in all segments – motorcycles, scooters and mopeds. Management ability to maintain market share despite onslaught of Honda Motor and Eicher is most impressive. JV with BMW, turnaround in subsidiaries – TVS Motors Indonesia and TVS Credit are key long term opportunities. The impact of Covid-19 pandemic has receded with industry volumes growing at a healthy pace with strong premiumization trends. Recent surprises are on the margin front and performance of the export market are noteworthy. Despite good near term performance, we have a neutral weight due to rich valuations which may be unsustainable if e-Scooters pick up traction and there is intense new PE funded competition – 27-08-2021 Price: 510.95 Rating: Neutral Recommendation: Hold

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