InvestorQ : TVS Motors is currently quoting at a new 52-week low price. Should I buy the stock after the recent results?
Sam Eswaran made post

TVS Motors is currently quoting at a new 52-week low price. Should I buy the stock after the recent results?

Answer
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swati Bakhda answered.
1 year ago


Total revenues of the company were up by 8% at Rs.5026 crore for the June quarter but the net profits were down by 5.5% at Rs.151 crore. The company has faced pressure on costs and has not been able to pass on higher costs to the end customers due to the tightly competitive situation in the market. Secondly, the net margins are already very low at just about 3%. AT these kinds of margins, it is going to be very hard to sustain even the current valuations of 28 times earnings. It is better not to venture and buy the stock and it is in a weak trend.

Like other manufacturers of consumer durables, TVS Motors is also under pressure due to consumers willing to postpone their purchases due to economic uncertainty and expectations of a liquidity crunch in the market. One can wait for lower levels to take a fresh view on TVS Motors. At present, it is not worth buying into the stock.


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1 year ago


It is best not to invest heavy into Auto for some time as there is high volatility prevailing.