TVS, Eicher Motors hit 52-week highs on healthy growth prospects
Shares of two-wheeler companies were in focus with TVS Motor Company and Eicher Motors at their respective 52-week highs on the BSE in Tuesday’s intraday trade on expectation of healthy demand for vehicles on back of strong rural demand supported by favorable rabi output, increase in crop prices and opening up of schools and colleges.
Among the individual stocks, TVS Motor hit a record high at Rs 888.80, up 1 per cent, surpassed its previous high of Rs 885.85 touched on July 1, 2022. Eicher Motors hit a fresh 52-week high of Rs 3,088, up nearly 2 per cent in intraday trade today. In the past one month, these stocks have rallied up to 20 per cent each, as compared to a 6 per cent rise in the S&P BSE Sensex.
The demand for personal and sustainable mobility solutions continue to keep the global two-wheeler market buoyant. The expected softening in commodity prices and normalising semiconductor availability will aid in meeting the demand. In the long term, the market is expected to benefit from tailwinds such as superior technology, higher fuel efficiency, better drive experience and lower environmental impact.
Domestic moped and economy motorcycle segments have lately underperformed and are likely to return to growth, with some buoyancy expected in rural agriculture led markets. However, with considerable improvement in the urban markets across India, the company is positive about the performance of the scooter segment, said TVS Motor.
This segment will see significant demand from students, working women and the broader replacement segment is likely to perform better in line with the re-opening of school, colleges along with offices, the company said in FY22 annual report. Due to the strong product line-up, unwavering focus on consumer, quality, cost, and the strong new launches the Company is confident about outperforming the industry, inspite of the global challenges and a tough business environment, it added.
While 2W demand is seeing an uptick QoQ in Q1, the sense we got is that motorcycle demand is stronger than scooters, as rising fuel prices have seen consumer preference shifting to motorcycles and given electric vehicle transition in scooters, ICE scooter demand has been impacted at the margin, analysts at HDFC Securities said in its sector update.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Comments are closed.