Last updated: Oct 31, 2023 1:15 PM IST
TVS Apache RTR 310 (Photo: TVS)
TVS Motor shares opened at Rs 1,634 and then hit an intraday low of Rs 1,585.45
Shares of TVS Motor Company Ltd were trading in the green around 9:30 am, rising 1.5% to hit their 52-week high of Rs 1,634 on the NSE in Tuesday’s trade, after posting a better-than-estimated net profit for the September quarter. Later in the day they entered the red and fell 3%.
TVS Motor shares opened at Rs 1,634 and subsequently hit an intraday low of Rs 1,585.45. The scrip has risen 38% in the last six months. On a year-on-year basis, the stock is up 50%, compared to a rise of over 27% in the Nifty Auto index.
The company’s profit rose 31.7% to Rs 527 crore in the three months ended September 30 from a year earlier. Analysts on average estimate a profit of Rs 525 crore, according to LSEG data.
TVS Motor’s scooter and motorcycle sales rose 10% and 3% respectively during the quarter.
Should You Buy TVS Motor Stocks?
After TVS Motor Company’s better-than-expected net profit in the September quarter, Jefferies increased its target price for the two-wheeler stock.
The brokerage remains optimistic about the company’s growth prospects in light of improving 2W demand in the country.
Domestic brokerage firm Nuvama maintained its buy rating on TVS Motor with a revised price target of Rs 1,840, compared to Rs 1,510 earlier. Nuvama said TVS has gained domestic market share. The market share has grown from 14% in FY18 to 16% in FY23.
The brokerage expects a further increase from 16% in FY23 to 18% in FY26, mainly due to a larger share of executive or premium bicycles and electric vehicles.
“Multiple launches (Jupiter, Zest, Ntorq, iQube, Radeon and Raider) over the years have enabled volume and market share gains. We estimate outperformance in overseas markets with new products, better penetration and a CAGR of 2W domestic/export volume in FY23-26E at 11%/8%.
Himanshu Singh – Research Analyst at Prabhudas Lilladher believes that TVS is well-placed to outperform the industry given the good prospects for new product launches in the ICE and EV segments; greater focus on exports and premiumization and margin improvement, aided by cost control; operating leverage; favorable input prices and PLI benefits are likely to offset the impact of a higher EV mix.
The brokerage has retained ‘Accumulate’ with a revised stock target of Rs 1,650 from earlier Rs 1,560.
Disclaimer:Disclaimer: The views and investment tips expressed by experts in this News18.com report are their own and not of the website or its management. Users are advised to contact certified experts before making any investment decisions.
