TVS Motor Company’s stock price surged by 1.56% to Rs 1634; however, it retreated later by 0.71% to Rs 1,597 a day the company posted a standalone net profit of Rs 537 crore in the second quarter of FY24, a 32% year-on-year (YoY) increase compared to Rs 407 crore in Q2FY23. The company reported a 13% year-over-year revenue increase, reaching Rs 8,145 crore in the second quarter ending on September 30, as opposed to the Rs 7,219 crore it had recorded in the corresponding period of 2022.
TVS Motor Company’s share price gained 0.85% in the last five days, 4.53% in the last one month, 28.18% in the last six months and a whopping 49.11% year to date.
Prabhudas Lilladher: Accumulate – Target Price: 1,650
“We believe TVS is well placed to outperform the industry given (1) good tractions for new product launches in ICE & EV segments (2) higher focus on exports & premiumisation and (3) margin improvement helped by cost control, (4) operating leverage, (5) benign input prices and (6) PLI benefits to likely offset impact from higher EV mix. Retain ‘Accumulate’ with Target Price of Rs 1,650 (earlier Target Price at Rs 1,560) at 27x Sep-25E EPS incl. Rs66 for TVS credit (earlier Rs. 35).”
Axis Securities: Buy – Target Price: Rs 2,100
“Based on the above strong fundamental outlook, we expect the company to deliver a strong ROE ranging between 25%-29% over the next few years. We reiterate our ‘Buy’ rating on the stock with a revised Target Price at Rs 2,100/share, valuing it at a sustainable premium P/E multiple of 30X(earlier 25X) on Dec’25 core EPS (rollover from Jun’25 core EPS) and other investments at 1x P/BV and TVS Credit Services at 2X P/BV. The Target Price implies an upside of 30% from the CMP.”
HDFC Securities: Buy – Target Price: 1,778
“In exports, having established its presence in Africa, its outperformance is likely to be driven by its focus on penetrating Latin America in the coming years. Even in 2W EVs, TVS is putting the right building blocks in place in order to emerge as a leading player. Its investments in e-bikes in Europe, Norton and the extension of tie-up with BMW Motorrad are expected to deliver strong returns over a 2-3 year horizon. Given its strong performance in H1, we have raised our FY24-25 estimates by 11% each. We maintain ‘Buy’ with a revised Target Price of Rs 1,778/sh (earlier Rs 1,459), as we roll forward to Sept’25 EPS.”
JM Financial: Buy – Target Price: 1,650
“In 2QFY24, TVS Motor (TVSL) reported EBITDA margin of 11% (+80bps YoY, +40bps QoQ), broadly in-line with JMFe led by cost reduction efforts, favourable mix and higher operating leverage. Domestic 2W demand is led by improving consumer sentiments (as indicated by festive demand) and expected rural recovery. Affordability and currency related challenges in the international markets have largely bottomed out. In relation to EVs, TVS plans to ramp-up EV business by introducing new products and expanding its footprint globally going ahead. Overall, we expect TVSL’s outperformance to continue on the volume front (led by premiumization and EV product launches), while steady/softening RM prices, operating leverage and astute cost management would help on the margin front. We estimate revenue / EPS CAGR of 15%/28% over FY23-26E. We maintain ‘Buy’ with a Mar’25 Target Price of Rs 1,650 (25x Mar’26E EPS). Prolonged slowdown in international market remains a key risk.”
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