TVS Motor share price jumped 2.8% to Rs 1,343.95 today after the company reported 46% growth in its standalone net profit at Rs 468 crore for the quarter ended June. Revenue from operations during the quarter rose 20% on-year to Rs 7,218 crore. Nuvama and HDFC Securities recommended a ‘Buy’ call on the TVS Motor Company stock while Motilal Oswal and Antique Stock Broking recommended a ‘Neutral’ and ‘Hold’ rating, respectively. TVS Motor shares have gained 2% in the last one month and over 50% in the past one year.
Should you buy, sell or hold TVS Motor stock?
Nuvama: Buy – Target Price: Rs 2650
“We raise our FY24E/25E NOPLAT by 9.2%/18.2% to build in better equity market conditions and a more benign regulatory environment versus earlier expectations. We increase our target price to Rs 2,650 (DCF-based, implies FY24E/25E EV/NOPLAT of 36.1/37.2x) on the back of increased earnings and roll-forward to Sep-24E. Maintain ‘BUY’,” said analysts at Nuvama Institutional Equities.
HDFC Securities: Buy – Target Price: Rs 1459
“With supply challenges now largely over, we expect the company’s outperformance to continue on the back of healthy demand for its best-selling products like Raider, Apache, Ronin, etc. Even in 2W EVs, TVS is putting the right building blocks in place in order to emerge as a leading player in EVs. We maintain BUY with a revised TP of Rs 1,459/sh (earlier Rs 1342), as we roll forward to June’25 EPS (target multiple unchanged at 28x),” said analysts at HDFC Securities.
Antique: Hold – Target Price: Rs 1309
“We tweak our EPS estimates downwards ~3.5%/ 2.5% for FY24/ FY25 to factor in the pressure in the EV business. We value TVS at 15x FY25E EV/EBITDA and assign Rs 103 to TVS Credit at a 20% discount to the transaction value to arrive at a target price of Rs 1,309. We downgrade the stock to HOLD,” said analysts at Antique Stock Broking.