This 2 wheeler stock hits 52-week high on strong Q4, analysts bullish on prospects

May 5, 2023


Credit: BCCL

TVS Motor stock jumps to 52-week high

​After posting strong March-quarter earnings, the shares of the motorcycle manufacturer hit a 52-week high at ₹1,235, up nearly 6 percent on Friday. ​

Credit: TVS Motor

Q4 net profit rises 49 percent

​TVS Motor’s standalone net profit jumped 49 percent to ₹410 crore for the March quarter, from ₹275 crore last year – on the back of strong sales. Its revenue from operations grew 19 percent on year to ₹6,605 crore.​

Credit: TVS Motor

Operating margin up marginally

​TVS Motor’s earnings before interest, tax, depreciation and amortisation (EBITDA) margin grew marginally to 10.3 percent in Q4 from 10.1 percent a year earlier.​

Credit: Canva

Company expects to outperform in domestic & export segments

​The management said that it expects to outperform the industry in both domestic and export segments due to demand recovery led by the premium and electric vehicle (EV) segment. ​

Credit: BCCL

​Most brokerages expect the stock price to trend higher​

Credit: Business Insider

Recovery in 2-wheeler market to drive sales: Motilal Oswal

​“Volume growth is likely to be driven by recovery in the domestic 2W market, new products (Raider, 125CC scooters and iQube) as well as a recovery in exports. TVSL is enjoying the benefits of economies of scale and operating leverage, due to which the EBITDA margin is sustaining at double-digit level,” said Motilal Oswal. ​

Credit: Motilal Oswal

Ahead of listed peers in EVs: HDFC Securities

​“With supply challenges now largely over, we expect TVS’ outperformance to continue on the back of the ramp-up of its launches. Even in EVs, it seems to be ahead of its listed peers with a strong product pipeline in place for the next 24 months; it has signed up with industry experts and joint venture partners to emerge as a leading player in EVs,” said a report by HDFC Securities. ​

Credit: HDFC Securities

​Many positive factors, says Anand Rathi ​

​Anand Rathi is positive on the stock due to many factors like — expectations of a cyclical upturn in domestic/export 2Ws, market-share gains - domestic and overseas; relentless EV strategy and margin expansion emanating from rising economies of scale, a better product mix and cost-cutting measures.​

Credit: Anand Rathi

Upcoming cars expected to launch in India in May 2023