Karvy Stock Broking has reiterated 'Buy' on TVS Motors with target price of Rs 187 as against current market price (CMP) of Rs 144 with 30% upside in its report.

Commenting on the investment rationale, Karvy Stock Broking said, ''TVS Motor (TVSL) displayed stellar performance across segments over past three quarters. Moreover, success of its new launches in domestic market and high double digit growth in exports led to visible outperformance of the company since FY15 beginning.

In view of TVSL gaining market shares, better industry outlook and healthy exports, we increase our volume estimates by 8% and 9.5% for FY15 and FY16, accordingly we increases our revenue estimates by 9% and 12% for FY15E and FY16E respectively. On account of higher margins, we raise our EPS estimates by 30% and 39% for FY15E and FY16E respectively.

We increase our price target from Rs 115 to Rs 187 a share, valuing its FY16E EPS at 14x (earlier 12x). We reiterate our 'BUY' recommendation on TVS Motor with potential upside of 30% from CMP.''

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.