TVS Motors: Company Valuation

Indian Automobile Industry: A Glance

Indian Two-Wheeler Industry second largest in the world by volume
of production and sales
Growth in Indian Automobile Industry due to a steep upsurge
witnessed in the two-wheeler segment in 2014
14.8% volume growth recorded in 2014-15
Make in India Campaign

2-wheeler Domestic Demand Growth

3 0%

2 6%

26%

2 5%

2 0%

1 5%

1 4%

13%

1 3%

FY1 7 E

FY1 8E

1 0%
7%

8%

7%

5%
3%

0%

FY09

3%

FY1 0

FY1 1

FY1 2

FY1 3

FY1 4

FY1 5

2 Wheeler Dom estic Dem and Growth (YoY)

FY1 6 E

Growing Demand
Low Commodity Prices
Strong demand due to rising income and
middle class

Fall in Petrol/Diesel Prices

Growth in export demand is set to

accelerate

Growth Drivers

Rising Investments
Policy Support
Focus on R&D is fostering innovation
and efficiency
Leveraging India's pool of
skilled labout will further propel growth

Support in the form of sops, taxes ,FDI

encouragement and intorduction of GST

TVS Motors: An Overview

Third largest two-wheeler manufacturer in India and one among the top
ten in the world
Domestic Products:
Motorcycles - Apache Series RTR, Phoenix 125, Star City+, Sport, Max4R
Scooters - Jupiter, Wego, Scooty Zest 110, Scooty Streak, Scooty Pep +
Mopeds - TVS XL Super, TVS XL Heavy Duty

Annual revenue of more than Rs. 10,131 Cr in 2014-15

Production capacity of 3 million 2 wheelers & 1.2 Lakh 3 wheelers a year
Company achieved higher than the industry growth in 2014-15

TVS Motors: An Overview

Sales Growth in FY15
60.00%

50.00%

48%

40.00%

30.00%
21%
20.00%

10.00%
4%
0.00%

Scooters

Motocycles
Sales Growth in FY15

Mopeds

Expected valuations for 2016

Information from news reports
Sales Growth
Scooters Sales
Motor Cycles Sales
Mopeds Sales

Future Investment for FY16

Profit Growth
Profit Before Tax
Profit After Tax

Earning Per Share (EPS)

Price to Book Value
P/E Ratio

14.8%
47.7%
21.0%
3.6%

350 crores
6.8%
6.95%

8.07
5.63
29.2