TVS Motor zooms 109% from March’22 low; m-cap crosses Rs 50,000 crore


Shares of hit a new high of Rs 1,071, up nearly 2 per cent in Monday’s intra-day trade, on expectation of strong earnings growth. The stock price of the two and three-wheeler company zoomed 109 per cent from its low of Rs 513, that it had touched on March 7, 2022. In the past one month, the stock has rallied 12 per cent, as compared to 1 per cent rise in the S&P BSE Sensex.

saw its market capitalisation (m-cap) cross Rs 50,000 crore-mark after a sharp rise in the stock price of the company. At 10:59 am; TVS Motor Company’s market capitalisation stood at Rs 50,312 crore, the BSE data shows.

Last week, the company launched their brand new 2022 ‘TVS Apache RTR 180’ and ‘TVS Apache RTR 160’ motorcycles. Meanwhile, TVS Motor said that it was optimistic about the existing demand in the two-wheeler market ahead of festive season. Besides, the company is also geared up to meet the pent-up demand as semiconducters shortage recede.

That apart, the company expects domestic ‘Moped and Economy’ motorcycle segments to return back to track after recent underperformance, buoyed by growth in rural and agricultural . 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 likely to see a growth during the year fuelled by strong demand for TVS products and operations in diverse geographies, that mitigates overall risk. Some of geographies which are dependent on agriculture and have a surplus of crude oil will act as a hedge against the countries, which may face adverse impact due to high fuel and food prices,” the company said.

Analysts at Emkay Global Financial Services retain their ‘positive’ view, as they expect a turnaround in the domestic 2W industry. They expect the company’s volume performance to be supported by reopening of offices/educational institutions, better finance availability, pick-up in rural sales and a favorable base effect.

“Our positive stance is underpinned by expectations of a cyclical upturn in domestic 2Ws and positive growth in exports; market share gains in domestic and overseas markets; and margin expansion emanating from rising economies of scale, commodity deflation and cost-cutting measures. TVS’ aggressive focus on the EV space is also an advantage, with multiple launches lined up in 2Ws/3Ws in the next two years, R&D collaboration with BMW and investment in electric bike maker Ultraviolette,” the brokerage firm said.

Dear Reader,

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.

Digital Editor


Source link

Comments are closed.