Fubotv earnings beat by $0.10, revenue topped estimates
Tuesday, UBS analyst Pramod Kumar increased the price target on TVS Motor Co Ltd (TVSL:IN) shares to INR 3,300 from INR 3,100, while reiterating a Buy rating on the stock. The adjustment follows TVS Motor’s reported financial results for the fourth quarter of the fiscal year 2025, which showed adjusted revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) surpassing UBS estimates by 2%. The company’s revenue rose by 15% to Rs 93.9 billion, and EBITDA by 27% to Rs 11.7 billion, with a margin of 12.5%. This performance included a Production Linked Incentive (PLI) of 0.5% of revenues for the quarter.
The analyst noted that the implied PLI incentive for the quarter was approximately 6% and projected that it would increase to over 10% in fiscal year 2026. This forecast is supported by the anticipated impact of new product launches, including a new electric two-wheeler (e2W) brand, a new iQube variant, and an electric three-wheeler (e-3W), as well as increased production and higher localization.
TVS Motor’s management has expressed confidence in the company’s market share and margin performance, particularly in the context of the newly launched e-3W, for which the PLI is pending. The management’s optimism is based on their expectation to become a significant player in the e-3W category, marking a shift from their historically marginal role in the internal combustion engine (ICE) three-wheeler space.
The analyst highlighted TVS Motor as the fastest-growing auto company in UBS’s coverage universe, noting its ability to achieve volume growth and margin expansion in a challenging demand environment where peers have struggled. The maintained Buy rating and raised price target reflect the firm’s positive outlook on TVS Motor’s performance and potential growth trajectory.
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