Shares of TVS Motor Company touched Rs 1,071, up about 2 percent in Monday’s intra-day trade, on expectations of strong earnings growth. The stock price of the company two and three – increased 109 percent from the low of Rs 513, which was blocked on March 7, 2022. In the last one month, the stock has gained 12 percent, compared to 1. percentage increase in S & P BSE Sensex.
TVS Motor Company saw its market capitalization (m-cap) cross the Rs 50,000 crore-mark following a sharp rise in the company’s stock price. 10:59 am; TVS Motor Company’s market capitalization stands at Rs 50,312 crore, BSE data shows.
Last week, the company launched their new model 2022 ‘TVS Apache RTR 180’ and ‘TVS Apache RTR 160’ motorcycles. Meanwhile, TVS Motor said it is optimistic about the demand in the two-wheeler market ahead of the luxury season. Besides, the company is also ready to meet the pent-up demand as the shortage of semiconductors decreases.
Apart from that, the company expects the domestic motorcycle segments ‘Moped and Economy’ to get back on track after the recent underperformance, supported by growth in the rural and agricultural markets. Urban markets, too, are expected to perform well as colleges, schools, and offices reopen, driving demand for the scooter segment.
“The export of two-wheelers is seen to grow during the year due to the strong demand for TVS products and operations in different geographical areas, which reduces the overall risk. act as a hedge against countries, which may face a negative impact due to high prices of fuel and food,” said the company.
Analysts at Emkay Global Financial Services maintain their ‘positive’ outlook, as they expect a turnaround in 2W’s domestic business. They expect the company’s volume to be supported by reopening of offices/educational centers, better liquidity, uptake in rural markets and positive results.
“Our positive position is supported by expected cyclical increases in domestic 2Ws and positive growth in exports; market share gains in domestic and international markets; and margin expansion from a growing economy, commodity reductions and cost-cutting measures. TVS’ focus on the EV space is also an advantage, with multiple launches slated for 2Ws/3Ws in the next two years, an R&D partnership with BMW and an investment in electric bike maker Ultraviolette,” the brokerage firm said. .