The share price of TVS Motor Company rallied 8.7% to an intra-day high of Rs 2,539.20 after it reported its quarterly earnings for Q3 FY25. The brokerage firm Nuvama Institutional Equities kept the rating unchanged to ‘Buy’ with a target price of Rs 3,100 per equity share. This implies a 33% upside from the closing rate of the stock on January 28, 2025.
3 reasons why Nuvama has Buy on TVS Motor
Upcycle in two-wheelers: The brokerage house is confident about the stock on the back of ongoing upcycle in two-wheelers, market share gains in domestic as well as overseas, and aggressive EV focus. It expected the revenue to grow at a compounded rate of 11% over the next two financial years and earnings per share (EPS) of 21%.
Gaining share in domestic market: TVS Motor has been gaining a share in domestic and international markets. Nuvama estimates that the company’s domestic share to rise from 17% in FY24 to 18% by FY27. “Furthermore, we forecast a margin expansion in subsequent quarters due to the accounting of PLI incentives,” read a report by Nuvama.
Product mix: According to Nuvama, TVS Motor will have a share of 18% in FY27 due to its strong presence in ICE executive/premium motorcycles and EVs. It has also planned six launches over three years in the premium space, under the Norton brand starting FY26 onwards. “We estimate outperformance in overseas markets as well, with new products/better penetration. We build in FY25–27E domestic/export 2W volume CAGR of 8%/11%,” read the report.
TVS Motor Q3FY25 results
TVS Motor reported a 4.2% YoY growth in its standalone net profit standing at Rs 618 crore in Q3 FY25 against Rs 593 crore posted in the same quarter a year ago. Its revenue from operations came at Rs 9,097 crore, up 10% YoY compared to Rs 8,245 in the corresponding period of the current financial year.
TVS Motor Vs Nifty 50
The stock of auto major has given a return of 9.5% in the last five trading sessions. It has risen 5.65% in the last one month and 0.08% in the last six months. TVS Motor’s share price has increased by 27% in the last one year.
To compare, the benchmark index, Nifty 50 has been on muted lines in the past five trading sessions due to heightened volatility.
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