In the early hours of May 9, TVS Motor business shares surged by more than 6% to Rs 2,123. The business had just the day before released its Q4 results, which were supported by strong sales volumes, a balanced product mix, competitive pricing, and low commodity prices.
In January-March, the two-wheeler manufacturer's net profit exceeded projections, rising 18% year over year to Rs 485 crore. A 33 percent increase in net profit was predicted by analysts surveyed by Moneycontrol. TVS Motor outperformed analysts with its Q4 FY24 income from operations, up 24% year over year to Rs 8,169 crore.
Brokers have conflicting opinions about the Apache-bike maker's growth potential.
For the two-wheeler, Bernstein has assigned a rating of "market perform," with a target price of Rs 2,050 per share. According to the brokerage, TVS's Q4 performance was mostly in line with forecasts, with volume increase being the primary driver of the results. According to Bernstein, TVS Motor has a considerable EBIT margin gap with its competitors, but there may be room for the firm to close the gap.
Jefferies has set a target price of Rs 2,525 per share for the TVS Motor shares, with a "buy" recommendation. This suggests a potential upside of up to 21% over the present price. Analysts at Jefferies anticipate that the firm will gain a great deal from the rebound in two-wheeler demand in both the home and export markets. Over the past three years, TVS Motor's earnings per share (EPS) has more than quadrupled, and Jefferies predicts that it will more than double over the next three years.
TVS saw a 22 percent increase in overall two- and three-wheeler sales, including exports, in the quarter ending in March 2024, reaching 10.63 lakh units as opposed to 8.68 lakh units in the same quarter the previous year. Overall sales increased by 14% to 41.91 lakh units for the fiscal year that ended in March 2024.
Regarding the stock, Goldman Sachs is 'neutral'. Its assessments showed that TVS's average selling price was only 1% higher. The business anticipates that FY25 will see advancements in outside markets.
Shares of the business were up 5% from the previous close on the NSE, trading at Rs 2,089 at around 10:30 am. Over the past year, shares of TVS have increased by 72%.
