We have been positive on TVSL since our coverage initiation in Nov’13. We also like continued improvement in its competitive positioning and
financial performance. Our EPS estimates are one of the highest on the street (~18/~29% higher than Bloomberg consensus for FY19/20). However, valuations at 28.4x/21.1x FY19E/FY20E EPS already reflect large part of the earnings drivers, leaving no margin of safety for execution risk. Our TP is INR764 (~20x Mar-20E EPS + INR67/share for value in NBFC investment post 20% HoldCo discount)
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Motilal Oswal was founded in 1987 as a small sub-broking unit, with just two people running the show. Today it has a 2000 member team with a networth of Rs7 bn and market capitalization as of March 31, 2008 at Rs19 bn.
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