 "TVS Motor dips post July sales nos")
Shares of TVS Motor Company were trading lower by 3% at Rs 231 on the BSE, in an otherwise firm market, after the two-wheeler maker reported a marginal 1.9% year-on-year growth in total sales at 218,321 units during the month of July. The company had sold 214,324 units in the same month last year.
Total two-wheeler sales grew by 1.3% in July 2015 at 208,044 units as against 205,360 units in the corresponding period a year ago, TVS Motor said in a report.
Three wheeler sales witnessed a 15% increase in July at 10,277 units, as against 8,964 units sold in the corresponding period a year ago, the company added.
Meanwhile, post April-June 2015 quarter (1QFY16) results, the stock has dipped by 12.5% from Rs 263 on July 23, compared to a 0.56% decline in the S&P BSE Sensex.
TVS Motors’ Q1FY16 results were disappointing yet again at the operating performance level. As against an expected EBITDA (earnings before interest, tax, depreciation and amortisation) margin of 7%, the company reported a mere 6.2%. The management has assured of a quarter-on-quarter improvement in margins every quarter hereon. However, so far, the trend in operating performance has remained stagnant at around 6% despite healthy volume growth, said Rohan Korde, analyst at Prabhudas Lilladher.
The broking firm has an ‘accumulate’ rating on the stock, with a target price of Rs 274.
Total two-wheeler sales grew by 1.3% in July 2015 at 208,044 units as against 205,360 units in the corresponding period a year ago, TVS Motor said in a report.
Three wheeler sales witnessed a 15% increase in July at 10,277 units, as against 8,964 units sold in the corresponding period a year ago, the company added.
Meanwhile, post April-June 2015 quarter (1QFY16) results, the stock has dipped by 12.5% from Rs 263 on July 23, compared to a 0.56% decline in the S&P BSE Sensex.
TVS Motors’ Q1FY16 results were disappointing yet again at the operating performance level. As against an expected EBITDA (earnings before interest, tax, depreciation and amortisation) margin of 7%, the company reported a mere 6.2%. The management has assured of a quarter-on-quarter improvement in margins every quarter hereon. However, so far, the trend in operating performance has remained stagnant at around 6% despite healthy volume growth, said Rohan Korde, analyst at Prabhudas Lilladher.
The broking firm has an ‘accumulate’ rating on the stock, with a target price of Rs 274.