TVS Motor share value climbs 9% to 3-week excessive as brokerages stay bullish submit Q3 earnings

Inventory market right now: TVS Motor Firm, one of many nation’s main two-wheeler and three-wheeler producers, noticed its shares spike for the second consecutive buying and selling session on Wednesday, January 29, gaining one other 9% and reaching a 3-week excessive of ₹2,539 apiece. The inventory rose as brokerages retained their constructive stance following the discharge of the corporate’s December quarter efficiency.

The corporate, throughout market hours on Tuesday, reported a third-quarter revenue that missed estimates, as its two-wheeler gross sales grew on the slowest tempo in additional than a 12 months. Nevertheless, enhancements in working numbers prompted the inventory to finish the session 5% larger.

TVS Motor: Brokerages retain bullish stance

Following the corporate’s Q3 efficiency, international brokerage agency Macquarie maintained its ‘Outperform’ ranking on the inventory with a goal value of ₹2,857 apiece. The brokerage famous that 3Q FY25 noticed a modest EBITDA beat, pushed by higher gross margins. Macquarie believes that market-share features and margin enlargement will drive industry-leading earnings development and inventory efficiency.

JP Morgan retained its ‘Chubby’ ranking on the inventory with a goal value of ₹3,130 apiece. Home brokerage agency Nuvama Institutional Equities retained its ‘Purchase’ name on the inventory with an unchanged goal value of ₹3,100 apiece.

“TVS Motor has been gaining market share in each home and abroad markets, and we count on its home share to rise from 17% in FY24 to 18% by FY27E. Moreover, we forecast margin enlargement in subsequent quarters as a result of accounting of PLI incentives,” stated the brokerage.

Its home 2W market share grew from 15% in FY19 to 17% in FY24, with a number of launches (Jupiter, Zest, Ntorq, iQube and Raider) driving market share features over time. The brokerage forecasts FY27E share at 18% on the again of TVSL’s sturdy presence in ICE government/premium bikes and EVs. 

Motilal Oswal, however, maintained its “Impartial” ranking on the inventory with a goal value of ₹2,570 apiece. The brokerage said that the lately launched Jupiter 110 has been very properly acquired by clients and is probably going to assist TVS Motor acquire a share within the scooter market within the coming quarters.

Nevertheless, it famous that the corporate has underperformed the {industry} within the motorbike phase in FY25 YTD, significantly within the 125cc phase, which has been a key development driver lately. Moreover, whereas there’s a restoration within the export market, its full restoration has but to be realised, the brokerage noticed.

TVS Motor Q3 earnings snapshot

The corporate reported a 4.2% year-on-year (YoY) improve in its standalone web revenue for the December quarter, reaching ₹618 crore in comparison with ₹593 crore in the identical interval final 12 months. The income from operations for Q3FY25 reached ₹9,097 crore, marking a ten% improve from ₹8,245 crore in the identical quarter of the earlier monetary 12 months.

The corporate’s working EBITDA grew by 17%, reaching ₹1,081 crore for the third quarter of FY25, in comparison with an EBITDA of ₹924 crore in Q3 FY24. The working EBITDA margin for the quarter was the very best at 11.9%, in comparison with 11.2% in Q3 FY24.

The corporate recorded gross sales of 12.1 lakh items, registering development of 10% for the quarter ended December 2024 as in opposition to 11.0 lakh items reported within the quarter ended December 2023.

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