• TVS's exports expansion strategy has been bearing fruits amidst sharp decline in domestic 2W industry as overall volume decline restricted to single digit while revenue being broadly protected.

• We expect exports volume to cross 1.1mn unit by FY22e with >25% share in total volume from ~20% in FY19.

• We also believe the company's pricing strategy and non-participation in big industry discounting war in recent months is a welcome change as this will help them overcome any cost linked margin shocks in FY21e.

• TVSL is using its financing partners and in-house financing NBFC arm (TVS Credit Services) to mitigate price hikes as some of the dealer is pointing towards 10-15% increase in financing penetration over the last few months.

• We maintain our Buy rating on TVSL with a revised TP of INR555 (INR544 earlier).

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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