TVS Motor Company
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
TVS Motor Company is positioned for sustained growth, driven by robust domestic demand and strategic initiatives in electric vehicle (EV) expansion and premiumization. Management's optimistic outlook is supported by aggressive capacity scaling, targeting an increase to 8.3 million two-wheeler units by Q4 FY27, alongside a strong product pipeline including the Norton brand. This focus on premium products and international market penetration is expected to enhance revenue growth and maintain stable margins, despite potential headwinds from commodity price inflation and supply chain challenges. Vista's financial outlook reflects a fair valuation aligned with intrinsic value, with an expected upside of approximately 38%. The company's proactive measures to mitigate cost pressures and its commitment to innovation position it well for the next 12-24 months, although execution risks remain a watchpoint. Overall, TVS Motor's strategic focus on electrification and premiumization, coupled with a strong export performance, underpins a positive growth trajectory in a favorable industry context
Why We Like This Stock
- Strong domestic demand and international expansion plans are expected to drive revenue growth
- Aggressive capacity scaling to 8.3 million units will enhance market share and operational efficiency
- Focus on premiumization and EV leadership positions the company favorably in a growing market
Things To Watch Out For
- Commodity price inflation poses a risk to margins and overall profitability
- Supply chain challenges could impact production capacity and execution of growth strategies
- Increased competition in the EV segment may pressure profitability and market positioning
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 38,779 | 44,089 | 56,070 | 62,195 | 72,665 |
| Profit Before Tax (Cr.) | 2,575 | 3,400 | 4,872 | 6,681 | 8,024 |
| PBT Margin | 6.6% | 7.7% | 8.7% | 10.7% | 11.0% |
| Net Profit (Cr.) | 1,633 | 2,275 | 3,234 | 4,430 | 5,044 |
| Earnings Per Share | 32.4 | 44.9 | 64.5 | 88.4 | 106.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| UBS | ▲ Buy | 4,925 | 28-Aug-2026 |
| Jeffries | ▲ Buy | 5,425 | 23-Aug-2026 |
| Emkay Global | ▲ Buy | 5,300 | 18-Aug-2026 |
| LKP Securities | ▲ Buy | 4,508 | 24-Jul-2026 |
| JPMorgan | ▲ Buy | 4,800 | 23-Jul-2026 |
| Nomura | ▲ Buy | 4,594 | 23-Jul-2026 |
| CLSA | ▲ Outperform | 4,384 | 22-Jul-2026 |
| Citigroup | ▼ Sell | 3,100 | 22-Jul-2026 |
| Elara Capital | ▲ Buy | 4,668 | 22-Jul-2026 |
| Kotak Securities | ► Add | 4,150 | 22-Jul-2026 |
| Macguire | ▲ Outperform | 4,325 | 22-Jul-2026 |
| Moneycontrol | ▲ Overweight | nan | 22-Jul-2026 |
| Morgan Stanley | ▲ Overweight | 4,327 | 22-Jul-2026 |
| Prabhudas Liladhar | ► Accumulate | 4,200 | 22-Jul-2026 |
| Choice Equity | ► Add | 3,920 | 21-Jul-2026 |
| Axis Securities | ▲ Buy | 4,020 | 15-May-2026 |
| BOB Capital Markets | ► Hold | 3,658 | 14-May-2026 |
| Goldman Sachs | ▲ Buy | 4,150 | 14-May-2026 |
| HDFC Securities | ► Add | 3,927 | 14-May-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 internationally. The company 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+, HLX, and Sport brand names; scooters under the Jupiter, Neo, Ntorq, and Zest brands; electric vehicles under the TVS X, Orbiter, 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, Zenith, and Allegro brands; e-cargo bikes and accessories; and electric mobility, predictive analytics, and industrial IoT solutions. In addition, the company is involved in 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. Further, it offers financing services for two and three wheelers, used and new tractors and commercial vehicles, consumer durables, personal loan, gold loan, and mid corporate loans. The company was incorporated in 1992 and is headquartered in Chennai, India. TVS Motor Company Limited operates as a subsidiary of TVS Holdings Limited.