Brokerages like Morgan Stanley, Nuvama, Emkay, etc, have shared their views regarding the future of this auto company. In this article, we will try to understand their viewpoints.
Price Movement
With a market capitalization of Rs 1,28,827 crore, the shares of TVS Motor Company Ltd is currently trading at Rs 2,712 per share, down by 8.3 percent from its 52-week high of Rs 2,958 per share. During the last one year, the stock has given a positive return of 32.67 percent.
Financial Highlights
The company announced its financial results, which bagged a lot of noise from different brokerage firms. Its revenue grew by 12.63 percent to Rs 44,089 crores in FY25, from Rs 39,145 crores in FY24. It increased by 16.09 percent YoY from Rs 9,942 crores in Q4 FY24 to Rs 11,542 crores in Q4 FY25. Additionally, on a QoQ basis, it rose by 4.59 percent from Rs 11,035 crores in Q3 FY25 to Rs 11,542 crores in Q4 FY25.
It posted a net profit of Rs 2,380 crores in FY25, up by 33.78 percent from Rs 1,779 crores in FY24. Net profit also increased by 69.42 percent YoY from Rs 412 crores in Q4 FY24 to Rs 698 crores in Q4 FY25. Additionally, on a QoQ basis, it rose by 14.6 percent from Rs 609 crores in Q3 FY25 to Rs 698 crores in Q4 FY25.
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Analyst Comments post Q4 results
Morgan Stanley has an Overweight rating and has raised its target price of Rs 3,126, with an upside of 15%. It said that TVS Motor’s Q4 margin of 12%, excluding PLI incentives, was as expected. While PLI incentives during the quarter were less than expected, they could rise in the future.
It had an ‘Overweight’ position on TVS, attributing reasons such as increasing competitive heat in the electric two-wheeler (E2W) segment, increasing scooter share, a good export outlook, and a healthy product cycle as the main reasons behind its upbeat view.
Nuvama Institutional Equities has maintained its ‘Buy’ rating on and raised the price target to Rs 3,200 from Rs 3,100 earlier, with an upside of 18%. Nuvama stated that TVS Motor is increasing market share within India and overseas, with its E-2W market share increasing to 20% in FY25 over its ICE share. This puts TVS in a good position for the EV growth. Nuvama anticipates margin expansion as a result of improved scale, product mix, increased PLI benefits, and cost advantages.
Emkay Global has reiterated a ‘Buy’ rating with a new price target of Rs 3,100 per share with an upside of 14.3%, citing that it is optimistic about TVS Motor, attributing its sustained market share expansion in core growth segments such as premium motorcycles, scooters, exports, and EVs. Fresh launches, such as the Jupiter 110cc scooter, electric three-wheelers, and other E2Ws, are poised to fuel outperformance.
About the company
TVS Motor Company Limited and its subsidiaries produce and market two-wheelers, three-wheelers, and auto parts in Indian and foreign markets. TVS has segments such as vehicles and parts, components, financial services, and others. It also offers e-mobility solutions under the brands of Cilo and Simpel, and two-wheeler financing. The company is present globally in markets such as the Middle East, Africa, Southeast Asia, France, and Latin America.
Written by Satyajeet Mukherjee
Disclaimer
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