Financial Daily from THE HINDU group of publications
Sunday, Aug 03, 2003
Financial Daily from THE HINDU group of publications Sunday, Aug 03, 2003 |
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Investment World
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Stocks Markets - Recommendation TVS Motor: Ride out with profits S. Vaidya Nathan
SHAREHOLDERS of TVS Motor can consider profit booking at the current price of about Rs 600. Business Line had earlier recommended partial profit booking at a price of Rs 535 in end-May 2003. A steadily declining trend in motorcycle' sales growth rates to single digits, modest success with product variants and costs of promotion and product launches point to pressures on profitability and tapering-off of earnings growth. TVS Motor enjoyed impressive growth rates in 2002 and early 2003, largely due to Victor. Now the competition is fighting back. New product launches have pepped up growth rates for Bajaj Auto, LML and to a lesser extent, Hero Honda, after they had trailed TVS Motor sharply until a couple of months ago. For TVS Motor, pushing volume growth to over 20 per cent on a large base may be tough in the absence of new product successes. A few launches have been indicated. Their performance can be monitored before considering fresh exposures in the stock.
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