The third largest producer of motorcycles in India, TVS Motor Company Limited saw its shares rise by more than 4 percent to trade at Rs 1,022 levels. The stock traded in the green after the company posted an increase in its quarterly earnings.
In Q3FY23, TVS Motor Company Limited reported a total income of Rs 8,075.06 Crore which jumped 22 per cent from Rs 6,606.22 Crore in the same period a year earlier. Their net profit grew by 28 per cent on a consolidated basis to be at Rs 303.64 Crore up from Rs 236.56 Crore.
The Electric vehicle sales registered a growth of 1,350 per cent as the company sold 29,000 units in Q3, as against 2,000 units in the same quarter last year. During the period, the company announced strategic engagement with Amazon India to strengthen electric mobility, electric infrastructure, and connected services.
TVS Motor Company is a reputed two and three-wheeler manufacturer with a global footprint in geographies like the Middle East, Africa, SE Asia, the Indian subcontinent, and Latin & Central America.
In addition to this, the board of the two-wheeler auto giant has declared payment of dividends to its shareholders. The company will pay an interim dividend of 500% of its face value of Rs 1 which amounts to Rs 5 per share. The record date for the purpose is set as February 2nd, 2023.
Global brokerage Jefferies is bullish on the stock and has a ‘Buy’ tag with a target of Rs 1,550 per share which represents an upside of 51% from the current levels.
We believe that strong volume growth, coupled with healthy margin expansion, will drive double-digit earnings CAGR for most of our covered OEMs over the next 2-3 years,” the brokerage firm said.
Written by Anoushka Roy
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