TVS Motor Company, a prominent manufacturer of two-wheelers and three-wheelers, has emerged as the standout performer in expanding its presence within the premium categories and gaining notable market share. This success has been driven by consistent increases in revenue and EBITDA share compared to competitors, coupled with enhancements in brand reputation and operational efficiency.
However, despite TVS Motor’s impressive performance, its share price has witnessed a decline of approximately 15% from its recent peak. This downturn is attributed to broader market dynamics, particularly the slowdown in passenger vehicle demand and the potential for a downturn in the commercial vehicle segment. These factors have overshadowed the positive outlook for the two-wheeler industry, which is expected to benefit from replacement-led growth over the next 2-3 years.
Analysts at Emkay Global Financial Services remain optimistic about TVS Motor’s prospects and have maintained a ‘Buy’ rating while adjusting the target price to 2,250. This confidence stems from the company’s strong competitive positioning across two- and three-wheelers, the anticipated continuation of the two-wheeler recovery, its leadership position in the electric two-wheeler market among incumbents, and potential margin improvements.
Currently, TVS Motor shares are trading at 1,956.00 apiece on the BSE, indicating a modest increase of 0.21%. While the share price has experienced some volatility, analysts continue to emphasize the company’s solid fundamentals and long-term growth trajectory.
