TVS Motor Company
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
TVS Motor Company is poised for sustained growth, driven by aggressive capacity expansion and a strong focus on electric vehicle (EV) adoption. Management's recent commentary highlights a bullish outlook, with expectations for double-digit growth in the two-wheeler segment, supported by a ₹3.5 billion investment to enhance production capacity. The company's strategic initiatives, including the launch of new models under the Norton brand and expansion into international markets, are expected to bolster revenue streams. Despite facing challenges from commodity inflation and potential supply chain disruptions, TVS is leveraging its scale and product mix to maintain margin stability. Vista's financial outlook reflects a moderate revenue growth trajectory, with stable margins and a fair valuation aligned with intrinsic value. The anticipated capital expenditure of ₹3,500 crores underscores confidence in future demand, particularly in the EV segment. Over the next 12-24 months, key opportunities include the successful rollout of premium products and continued market share gains, while watchpoints include commodity cost pressures and macroeconomic factors impacting rural demand
Why We Like This Stock
- Aggressive capacity expansion to meet rising demand, particularly in international markets
- Strong management outlook for double-digit growth in the two-wheeler segment, supported by new product launches
- Improving contribution margins in the EV segment, indicating a successful transition towards electric mobility
Things To Watch Out For
- Commodity inflation is expected to pressure margins, increasing costs by 3.5-4% of revenue
- Potential supply chain disruptions could pose execution risks if they recur
- Macroeconomic factors, such as El Niño, may impact rural demand and overall sales performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 38,779 | 44,089 | 56,070 | 62,256 | 74,359 |
| Profit Before Tax (Cr.) | 2,575 | 3,400 | 4,872 | 7,062 | 8,327 |
| PBT Margin | 6.6% | 7.7% | 868.9% | 11.3% | 11.2% |
| Net Profit (Cr.) | 1,633 | 2,275 | 3,234 | 4,683 | 5,235 |
| Earnings Per Share | 32.4 | 44.9 | 64.5 | 93.5 | 110.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 4,020 | 15-May-2026 |
| BOB Capital Markets | ► Hold | 3,658 | 14-May-2026 |
| CLSA | ▲ Outperform | 4,384 | 22-Jul-2026 |
| Choice Equity | ► Add | 3,920 | 21-Jul-2026 |
| Citigroup | ▼ Sell | 3,100 | 22-Jul-2026 |
| Elara Capital | ▲ Buy | 4,668 | 22-Jul-2026 |
| Emkay Global | ▲ Buy | 5,300 | 22-Jul-2026 |
| Goldman Sachs | ▲ Buy | 4,150 | 14-May-2026 |
| HDFC Securities | ► Add | 3,927 | 14-May-2026 |
| Jeffries | ▲ Buy | 4,900 | 22-Jul-2026 |
| Kotak Securities | ► Add | 4,150 | 22-Jul-2026 |
| LKP Securities | ▲ Buy | 4,508 | 24-Jul-2026 |
| Macguire | ▲ Outperform | 4,325 | 22-Jul-2026 |
| Moneycontrol | ▲ Overweight | nan | 22-Jul-2026 |
| Morgan Stanley | ▲ Overweight | 4,327 | 22-Jul-2026 |
| Nomura | ▲ Buy | 4,105 | 14-May-2026 |
| Prabhudas Liladhar | ► Accumulate | 4,200 | 22-Jul-2026 |
Company Overview
Show Company Profile
TVS Motor Company Limited, together with its subsidiaries, engages in the manufacture and sale of automotive vehicles and components, spare parts, and accessories in India and South Africa. It operates through Automotive Vehicles & Parts and Related Investments; and Investment Held in Financial Services segments. The company offers motorcycles under the Apache RTR, Apache RR, Ronin, Raider, Radeon, StaR City+, and Sport brand names; scooters under the Jupiter, Jupiter 1255, Ntorq, and Zest 110 brands; electric vehicles under the TVS X and iQUBE brands; mopeds under the XL 100 brand name; and three wheelers under the TVS King brand name. It also provides e-bikes under the Cilo, Simpel, and Allegro brands; e-cargo bikes and accessories; electric mobility, predictive analytics, and industrial IoT solutions; and financing services for two-wheelers. In addition, the company is involved procurement, refurbishment, and retailing of the pre-owned multi-brand two-wheeler motorcycles and scooters; and development, design, manufacture, sale and distribution of high-tech products and components in the field of personal e-mobility. The company was incorporated in 1992 and is headquartered in Chennai, India. TVS Motor Company Limited operates as a subsidiary of TVS Holdings Limited.