1QFY2012 Result Update | Automobile

July 29, 2011

TVS Motor
Performance Highlights
Y/E March (` cr) Net sales EBITDA EBITDA margin (%) Reported PAT
Source: Company, Angel Research

BUY
CMP Target Price
% chg (yoy) 25.3 30.5 26bp 45.7 Angel est. 1,669 92 5.5 46 % diff. 4.6 26.7 117bp 27.7

`49 `62
12 Months

1QFY12 1,746 117 6.7 59

1QFY11 1,393 90 6.4 40

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Automobile 2,345 1.3 87/44 556,723 1 18,197 5,482 TVSM.BO TVSL@IN

TVS Motor (TVSM) reported strong 1QFY2012 results, beating street’s as well as our expectations on the top-line and bottom-line front. The strong performance can be attributed to better-than-expected average net realisation (up 7.8% yoy and 5.9% qoq) and margin expansion (26bp yoy and 112bp qoq) despite raw-material cost pressures. We have marginally revised our revenue and earnings estimates to incorporate better-than-expected 1QFY2012 performance. We maintain our Buy rating on the stock. Better-than-expected operating performance: TVSM reported a strong 25.3% yoy (6.9% qoq) increase in its top line to `1,746cr, which was slightly higher than our expectation on account of better-than-expected average net realisation. Top-line growth was led by a 15.6% yoy jump (flat qoq) in volumes and a 7.8% yoy (5.9% qoq) increase in average net realisation to `31,884. Average net realisation improved on account of a superior product mix (higher share of exports) and price increases. EBITDA margin improved by 26bp yoy (112bp qoq) to 6.7% despite a 186bp yoy (207bp qoq) increase in raw-material costs. Margin expansion was supported by a sharp 212bp yoy (303bp qoq) decline in other expenditure. As a result, net profit jumped substantially by 45.7% yoy (41.1% qoq) to `59cr against our expectation of `46cr. Further, the decrease in interest cost on account of a decline in debt levels also supported strong bottom-line growth. Outlook and valuation: We estimate TVSM to post a 16.8% revenue CAGR aided by a 13% CAGR in volumes leading to a 13.8% increase in net profit over FY2011–13E. At `49, the stock is trading at attractive valuations of 10.6x FY2012E and 9.4x FY2013E earnings. We maintain our Buy view on the stock and value the company at 12x (20% discount to the average multiple of the top two industry players at 15x) FY2013E earnings to arrive at a target price of `62.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 59.3 21.1 4.0 15.6

Abs. (%) Sensex TVS Motor

3m (4.9)

1yr 1.1

3yr 31.9

(12.4) (27.6) 218.8

Key financials
Y/E March (` cr) Net sales % chg Net profit % chg EBITDA margin (%) Adj. EPS (`) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 4,363 18.9 88.0 183.4 4.2 1.9 26.6 2.7 10.5 4.4 0.6 13.4

FY2011 6,177 41.6 192.6 118.7 6.4 4.1 12.2 2.3 20.7 15.2 0.4 6.1

FY2012E 7,367 19.3 221.2 14.9 6.1 4.7 10.6 2.0 20.5 17.2 0.3 5.2

FY2013E 8,448 14.7 249.3 12.7 6.0 5.2 9.4 1.8 20.0 18.6 0.3 4.4

Yaresh Kothari
022-39357800 Ext: 6844 yareshb.kothari@angelbroking.com

Please refer to important disclosures at the end of this report

1

TVS Motor | 1QFY2012 Result Update

Exhibit 1: Quarterly performance
Y/E March (` cr) Net Sales (incl. other op. inc.) Consumption of RM (% of Sales) Staff Costs (% of Sales) Purchases of goods (% of Sales) Other Expenses (% of Sales) Total Expenditure EBITDA EBITDA margin (%) Interest Depreciation Other Income PBT (excl. Extr. Items) Extr. Income/(Expense) PBT (incl. Extr. Items) (% of Sales) Provision for Taxation (% of PBT) Reported PAT PATM (%) Equity capital (cr) EPS (`)
Source: Company, Angel Research

1QFY12 1,746 1,272 72.9 91 5.2 32 1.8 234 13.4 1,629 117 6.7 12 28 0 78 0 78 4.5 19 24.5 59 3.4 47.5 1.2

1QFY11 1,393 995 71.4 73 5.2 19 1.3 216 15.5 1,303 90 6.4

% chg 25.3 27.9 24.7 71.7 7.9 25.0 30.5

FY2011 6,289 4,473 71.1 328 5.2 107 1.7 988 15.7 5,896 393 6.2 47 107 10 248 0 248 3.9 54 21.6

FY2010 4,430 3,021 68.2 251 5.7 81 1.8 789 17.8 4,142 288 6.5 63 103 0 123 (47) 76 1.7 (12) (15.5) 88 2.0 23.8 1.9

% chg 42.0 48.1 30.7 31.5 25.3 42.4 36.3 (25.6) 4.6 1,940.4 101.9 225.7

17 (31.7) 27 50 0 50 3.6 10 20.0 40 2.9 23.8 0.8 45.7 45.7 54.3 4.1 54.3 4 (99.5)

195 3.1 47.5 4.1

121.1

121.1

Exhibit 2: Segmental performance
Y/E March (units) TVSM Motorcycles Scooters Mopeds Three-wheelers Exports (Inc. above ) 1QFY12 536,130 215,051 117,523 192,133 11,423 77,802 1QFY11 463,840 200,358 95,486 160,197 7,799 54,483 % chg 15.6 7.3 23.1 19.9 46.5 42.8 FY2011 2,046,731 836,821 466,264 703,717 39,929 234,411 FY2010 1,536,868 640,965 309,501 571,536 14,866 165,414 % chg 33.2 30.6 50.7 23.1 168.6 41.7

Source: Company, Angel Research

July 29, 2011

2

TVS Motor | 1QFY2012 Result Update

Top line driven by volume and average net realisation growth: For 1QFY2012, TVSM reported a better-than-expected 25.3% yoy (6.9% qoq) jump in its top line to `1,746cr. Growth was led by a healthy 15.6% yoy (flat qoq) increase in total volumes and a 7.8% yoy (5.9% qoq) increase in net average realisation to `31,844 due to a superior product mix and price increases carried out in April 2011. During the quarter, motorcycle sales witnessed moderate sales of 7.3%; however, scooter and moped sales continued their momentum, witnessing growth of 23.1% and 19.9% yoy, respectively. The three-wheeler segment also registered strong 46.5% yoy growth to 11,423 units. Exports continued to see strong traction, posting 42.8% yoy growth to 77,802 units.

Exhibit 3: Healthy volume momentum
(units) 600,000 500,000 400,000 300,000 200,000 100,000 0 5.3 6.3 21.9 29.8 32.8 Total volume yoy growth (RHS) 33.4 39.9 (%) 45 40 35 30 27.4 25 20 15.6 15 10 5 0

Exhibit 4: Average net realisation trend
(` ) 33,000 32,000 31,000 30,000 29,000 28,000 27,000 26,000 25,000 1.7 3.3 3.2 3.0 5.7 6.8 7.6 5.7 Net average realisation yoy growth (RHS) 7.8 (%) 9 8 7 6 5 4 3 2 1 0

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11
21.2 14.7

Source: Company, Angel Research

Source: Company, Angel Research

Exhibit 5: Net sales up 25.3% yoy
(` cr) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 Net sales (LHS) Net sales growth (RHS) 43.0 36.3 27.7 8.5 11.3 40.9 34.3 51.1 (%) 60 50 40 30 25.3 20 10 0

Exhibit 6: TVSM’s market share across categories
(%) 25 20 15 10 5 0
2.3 2.6 2.5 4.5 5.6 4.5 3.7 3.5 2.3 14.8 20.5 Scooters Three Wheelers 23.5 20.8 17.7 15.2 14.2 13.8 6.6 23.6 19.6 14.7 7.3 15.7 15.1 Motor Cycles Total Two Wheelers 21.9 20.5

1QFY12
14.3 6.8 6.3

7.3

6.8

6.2

7.1

6.9

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

Source: Company, Angel Research

Source: Company, SIAM, Angel Research

Operating margin expands despite cost pressures: TVSM’s EBITDA margin during 1QFY2012 came in 117bp above our estimates at 6.7%, an increase of 26bp yoy and 112bp qoq. Margin expansion was witnessed despite raw-material cost pressures, which increased by 186bp yoy. Raw-material cost accounted for 74.5% of net sales during the quarter. Employee expenses as a percentage of sales remained flat on a yoy basis. However, 212bp yoy savings in other expenditure helped TVSM to post improvement in its margin during the quarter. As a result, operating profit registered sharp growth of 30.5% yoy (28.3% qoq) to `117cr. Management has indicated that it has increased its product prices by ~1.5% from July 2011. Management expects commodity prices to soften going forward and, hence, does not see any need for further price hikes.

July 29, 2011

1QFY12

3

TVS Motor | 1QFY2012 Result Update

Exhibit 7: EBITDA margin at 6.7%
(%) 90 80 70 60 50 40 30 20 10 0 EBITDA margin Raw material cost/sales

Exhibit 8: Net profit jumps sharply
(`cr) 70 60 50 40 30 20 1.8 Net profit (LHS) 2.9 2.2 2.2 1.7 Net profit margin (RHS) 3.4 3.4 2.6 3.4 (%) 4 4 3 3 2 2 1 1 0

73.3

71.8

71.6

70.0

74.0

73.7

74.7

74.4

76.4

6.3

5.5

6.4

6.5

6.4

6.7

6.1

5.6

6.7

10 0

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

Source: Company, Angel Research; Note: Net sales includes other operating income

1QFY12

Source: Company, Angel Research

Better-than-expected net profit growth of 45.7% yoy: TVSM reported better-than-expected net profit growth of 45.7% yoy (41.1% qoq) to `59cr on account of improved operating performance. The sharp decline in interest cost (down 31.7% yoy) due to reduction in debt further helped the company to report better yoy net profit growth.

July 29, 2011

1QFY12

4

TVS Motor | 1QFY2012 Result Update

Investment arguments
Higher earnings growth on the success of new launches: TVSM posted healthy performance in FY2011, aided by overall volume recovery, improved product mix and benefits of operating leverage. New product launches such as Jive, Wego and Max4R helped TVSM to report strong performance. We expect the new launches to enable TVSM to ramp up its monthly run rate of two-wheelers and post annual volumes of 2.3mn and 2.6mn units in FY2012E and FY2013E, respectively, from 2mn units in FY2011. Overall, we expect domestic two-wheeler volumes to register a ~13% CAGR over FY2011–13. Improved product mix and three-wheeler to sustain operating margins: Higher contribution of three-wheelers to total volumes would help the company sustain its margin at 6–6.5% and slightly mitigate the impact of rising raw-material cost pressures, implying a higher earnings CAGR over the period. However, we believe the overall scenario will remain challenging for the company in terms of intensifying competition. Consolidated earnings back in black: TVSM’s consolidated performance was impacted by poor performance of its Indonesian subsidiary. The facility in Indonesia was started in FY2007 with an initial investment of ~`200cr. On a cumulative basis, TVSM invested around `270cr until FY2010. After the facility started, the economic slowdown extended the gestation period for TVSM in the Indonesian market. However, the expected recovery in the overseas market will help the company to improve its consolidated performance. TVSM recorded a robust 42% yoy jump in its consolidated net sales to `6,544cr (`4,611cr) for FY2011 and its net profit stood at `128cr as against `34cr for FY2010.

Outlook and valuation
Going ahead, we expect TVSM to counter intensive competitive pressures, particularly from Bajaj Auto, Hero Honda and HMSI, which are launching new bikes and reducing product prices in their bid to boost volumes. However, launch of the 125cc Flame, Jive, Wego, Max4R and three-wheelers would provide some respite to TVSM on the margin front going ahead.

Exhibit 9: Change in estimates
Y/E March (` cr) Net sales OPM (%) EPS Earlier Estimates FY2012E 7,360 5.8 4.4 FY2013E 8,415 5.8 5.2 Revised Estimates FY2012E 7,502 6.1 4.7 FY2013E 8,585 6.0 5.2 % chg FY2012E 1.9 24bps 4.9 FY2013E 2.0 14bps 1.9

Source: Company, Angel Research

July 29, 2011

5

TVS Motor | 1QFY2012 Result Update

We have marginally revised our revenue and earnings estimates to incorporate better-than-expected 1QFY2012 performance. We estimate TVSM to post a CAGR of 16.8% in its top line and 13.8% in its net profit over FY2011–13E, aided by a ~13% CAGR in volume and improving operating performance due to the change in product mix and better operating leverage. Thus, we expect TVSM to register EPS of `4.7 in FY2012 and `5.2 in FY2013. At `49, the stock is trading at attractive valuations of 10.6x FY2012E and 9.4x FY2013E earnings. We maintain our Buy view on the stock and value the company at 12x (20% discount to the average multiple of the top two industry players at 15x) FY2013E earnings to arrive at a target price of `62.

Exhibit 10: Key assumptions
Y/E March Total volume (units) Motorcycles Scooters Mopeds Three-wheelers Change yoy (%) Motorcycles Scooters Mopeds Three Wheelers Domestic (units) Exports (units)
Source: Company, Angel research

FY08 1,273,602 597,757 264,508 411,209 128 (16.7) (35.4) 2.1 19.3 1,136,395 137,207

FY09 1,321,534 634,918 246,153 435,589 4,874 3.8 6.2 (6.9) 5.9 1,128,136 193,398

FY10 1,536,895 640,965 309,501 571,563 14,866 16.3 1.0 25.7 31.2 205.0 1,371,481 165,414

FY11 2,046,731 836,821 466,264 703,717 39,929 33.2 30.6 50.7 23.1 168.6 1,812,320 234,411

FY12E 2,335,878 912,135 559,517 816,312 47,915 14.1 9.0 20.0 16.0 20.0 2,067,252 268,626

FY13E 2,592,743 983,281 643,444 914,269 51,748 11.0 7.8 15.0 12.0 8.0 2,294,577 298,165

Exhibit 11: Angel vs. consensus forecast
Angel estimates FY12E Net sales (` cr) EPS (`) 7,367 4.7 FY13E 8,448 5.2 Consensus FY12E 7,576 4.8 FY13E 8,678 5.7 Variation (%) FY12E (2.8) (1.9) FY13E (2.6) (8.2)

Source: Bloomberg, Angel Research

July 29, 2011

6

TVS Motor | 1QFY2012 Result Update

Exhibit 12: One-year forward P/E
(`) 100 90 80 70 60 50 40 30 20 10 0 Apr-03 Apr-09 May-04 May-10 Oct-03 Oct-08 Nov-04 Nov-09 Feb-07 Jun-05 Jul-06 Aug-07 Mar-08 Dec-05 Dec-10 Jul-11 Share Price (`) 6x 9x 12x 15x

Exhibit 13: One-year forward EV/EBITDA
(` cr) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 EV (` cr) 4x 6x 8x 10x

Feb-07

Jul-06

May-04

May-10

Dec-05

Aug-07

Mar-08

Nov-04

Source: Company, Bloomberg, Angel Research

Source: Company, Bloomberg, Angel Research

Exhibit 14: One-year forward P/BV
(`) 100 90 80 70 60 50 40 30 20 10 0 Share Price (`) 1.0x 1.8x 2.5x 3.3x

Exhibit 15: TVS, BAL, HH, Sensex – Stock Performance
450 400 350 300 250 200 150 100 50 0 TVS HH BAL Sensex

Feb-07

Nov-09

Feb-11

Jul-06

Jul-11

Sep-10

Dec-10 Apr-11

Jun-05

Apr-03

Oct-03

Oct-08

Apr-09

May-04

May-10

May-08

Dec-05

Dec-10

Jun-05

Jun-09

Aug-07

Jan-09

Aug-08

Mar-08

Mar-08

Mar-09

Aug-09

Jan-10

Nov-04

Nov-09

Oct-03

Oct-08

Nov-09

Apr-10

Apr-03

Apr-09

Jun-10

Source: Company, Bloomberg, Angel Research

Source: Company, Bloomberg, Angel Research

Exhibit 16: Automobile – Recommendation summary
Company Ashok Leyland Bajaj Auto Hero Honda Maruti Suzuki M&M Tata Motors TVS Motor Reco. Buy Neutral Neutral Accumulate Accumulate Buy Buy CMP Tgt. price (`) (`) 51 1,462 1,783 1,208 718 947 49 62 1,322 804 1,100 62 Upside (%) 21.6 9.4 11.9 16.1 25.6 P/E (x) FY12E 11.3 15.1 16.1 13.5 15.4 5.9 10.6 FY13E 9.0 14.5 14.6 11.9 13.9 5.5 9.4 EV/EBITDA (x) FY12E 6.8 9.8 9.0 7.9 10.0 3.9 5.2 FY13E 5.7 8.8 7.3 6.2 8.4 3.2 4.4 RoE (%) FY12E 14.9 51.3 65.3 16.8 25.1 41.9 20.5 FY13E 17.3 43.5 59.2 16.0 23.9 32.1 20.0 FY10-13E EPS CAGR (%) 9.2 3.0 10.2 13.3 9.2 9.0 13.8

Source: Company, Angel Research

July 29, 2011

Nov-10

Oct-08

Jul-11

Jul-11

7

TVS Motor | 1QFY2012 Result Update

Profit and Loss Statement
Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total expenditure Net raw materials Other mfg costs Personnel Other EBITDA % chg (% of Net sales) Depreciation & Amortisation EBIT % chg (% of Net sales) Interest & other charges Other Income (% of PBT) PBT % chg Extraordinary items PBT (reported) Tax (% of PBT) PAT (reported) Adj. PAT % chg (% of Net sales) Basic EPS (`) Adjusted EPS (`) % chg FY08 3,220 55 3,274 (16.1) 3,178 2,446 103 176 453 96 (47.8) 2.9 95 1 (98.7) 0.0 11 46 129.0 35 (61.1) 35 4 10.2 32 32 (52.3) 1.0 0.7 0.7 (52.3) FY09 3,671 66 3,737 14.2 3,552 2,783 111 205 453 185 93.3 5.0 103 82 6,701.7 2.2 65 13 43.1 31 (12.1) 31 0 0.1 31 31 (2.2) 0.8 0.7 0.7 (2.2) FY10 4,363 67 4,430 18.5 4,243 3,137 132 251 722 187 1.2 4.2 103 85 3.2 1.9 75 67 87.5 76 145.1 76 (12) (15.5) 88 88 183.4 2.0 1.9 1.9 183.4 FY11 6,177 112 6,289 42.0 5,889 4,584 147 325 833 400 113.6 6.4 107 294 245.7 4.8 46 3 1.2 250 228.2 250 58 23.0 193 193 118.7 3.1 4.1 4.1 118.7 FY12E 7,367 135 7,502 19.3 7,047 5,485 188 387 987 455 13.8 6.1 121 335 14.1 4.5 46 6 2.0 295 18.0 295 74 25.0 221 221 14.9 3.0 4.7 4.7 14.9 FY13E 8,448 137 8,585 14.4 8,074 6,283 211 444 1,136 511 12.2 6.0 128 383 14.3 4.5 43 6 1.7 346 17.4 346 97 28.0 249 249 12.7 3.0 5.2 5.2 12.7

July 29, 2011

8

TVS Motor | 1QFY2012 Result Update

Balance Sheet
Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves & Surplus Shareholders’ Funds Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Goodwill Investments Current Assets Cash Loans & Advances Other Current liabilities Net Current Assets Mis. Exp. not written off Total Assets 1,791 774 1,016 27 339 775 4 278 493 567 208 53 1,643 1,865 869 996 40 478 894 42 350 502 619 275 75 1,864 1,909 953 956 27 739 965 101 354 510 734 231 30 1,983 2,019 1,060 959 36 661 1,202 6 395 801 978 225 1,880 2,193 1,181 1,012 33 725 1,446 21 589 835 1,201 245 2,015 2,334 1,309 1,025 35 734 1,672 39 676 958 1,368 304 2,099 24 798 822 666 155 1,643 24 786 810 906 148 1,864 24 842 865 1,003 115 1,983 48 952 1,000 785 96 1,880 48 1,107 1,154 765 96 2,015 48 1,289 1,337 665 96 2,099 FY08 FY09 FY10 FY11 FY12E FY13E

Cash flow Statement
Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/Dec. in Fixed Assets (Inc.)/Dec. in Investments (Inc.)/Dec. in loans & advn. Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY08 35 95 45 165 4 6 (129) 6 (42) 46 (119) 33 36 (39) 30 (83) 87 4 FY09 31 103 (44) (69) 160 (88) (139) (82) 13 (296) 240 19 (85) 174 38 4 42 FY10 76 103 (108) (257) (12) 339 (30) (262) (18) 67 (243) 97 33 (167) (37) 59 42 101 FY11 250 107 52 149 58 202 (119) 78 (16) 3 (54) 24 (218) 67 (116) (244) (95) 101 6 FY12E 295 121 (186) (221) 74 377 (170) (64) (187) 6 (416) (20) 67 7 54 15 6 21 FY13E 346 128 (42) (37) 97 373 (144) (9) (77) 6 (224) (100) 67 (99) (132) 17 21 39

July 29, 2011

9

TVS Motor | 1QFY2012 Result Update

Key Ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Per Share Data (`) EPS (Basic) EPS (Adjusted) Cash EPS DPS Book Value DuPont Analysis EBIT margin Tax retention ratio Asset turnover (x) RoIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) RoCE (Pre-tax) Angel RoIC (Pre-tax) RoE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) Working capital cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage (EBIT / Interest) 0.4 3.4 0.5 2.1 1.3 0.2 0.9 1.1 0.1 0.3 6.3 0.0 0.0 7.3 (0.1) (0.2) 9.0 2.0 45 11 61 17 2.0 36 13 53 21 2.3 26 17 51 15 3.2 24 16 46 10 3.6 25 17 49 11 3.8 25 17 51 10 0.1 0.1 3.9 4.7 4.5 3.8 4.4 4.5 10.5 15.2 15.7 20.7 17.2 16.8 20.5 18.6 18.6 20.0 0.0 0.9 2.1 0.1 1.6 0.3 (0.4) 2.2 1.0 2.2 4.8 8.2 0.4 3.4 1.9 1.2 2.4 5.4 9.1 0.3 4.2 4.8 0.8 3.3 12.3 4.0 0.2 13.5 4.5 0.8 3.9 13.2 4.4 0.1 13.8 4.5 0.7 4.2 13.8 4.3 (0.0) 13.5 0.7 0.7 2.7 0.7 17.3 0.7 0.7 2.8 0.4 17.1 1.9 1.9 4.0 0.6 18.2 4.1 4.1 6.3 1.2 21.0 4.7 4.7 7.2 1.2 24.3 5.2 5.2 8.0 1.2 28.1 773.6 18.6 2.9 1.4 0.8 27.8 1.6 75.4 17.5 2.9 0.7 0.7 14.7 1.5 26.6 12.3 2.7 1.2 0.6 13.4 1.3 12.2 7.8 2.3 2.4 0.4 6.1 1.3 10.6 6.9 2.0 2.4 0.3 5.2 1.2 9.4 6.2 1.8 2.4 0.3 4.4 1.1 FY08 FY09 FY10 FY11 FY12E FY13E

July 29, 2011

10

TVS Motor | 1QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

TVS Motor No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

July 29, 2011

11

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