The automobile firm TVS Motor Company reported a strong set of numbers, despite that the share price fell 3.3% to a low of Rs 2,701. Its net profit surged almost 76% year-on-year to Rs 852 crore in Q4FY25, helped by other income, lower interest costs, and a favourable tax rate. Brokerages have given a thumbs up to the numbers and raised the target price. Nuvama sees nearly 20% upside from current levels.
Nuvama on TVS Motor: Raises target price
The brokerage house Nuvama Institutional Equities expects the automobile giant’s trend of gaining share in domestic and overseas markets to persist. “Furthermore, we forecast margin expansion ahead due to better scale/mix, higher PLI benefits and cost savings,” said Nuvama. It raised earnings per share (EPS) by 3% for FY26-27, each, led by higher revenue assumptions. The brokerage house raised the target price marginally by 3.2% to Rs 3,200 from Rs 3,100. It retained its ‘Buy’ call on the stock.
TVS Motor Q4 result
Its revenue came in at Rs 9,550.4 crore, growing 16.9% YoY and 5.0% quarter-on-quarter, exceeding the Street estimates, driven by robust volume growth across domestic and export markets.
For the whole financial year FY25, scooters led the volume growth at 21.2% YoY, followed by motorcycles that rose 10.3% YoY, and mopeds which grew 5.3% YoY. EV sales continued to show strong traction in Q4FY25, rising 31% YoY. However, the volumes of 3W declined by 8% YoY.
The company’s EBITDA stood at Rs 1,332.6 crore, jumping 43.9% YoY and 23.2% sequentially. Its margins expanded by 262 bps YoY, aided by operating leverage, cost efficiencies, and the recording of the annual PLI benefit in Q4, said Asit C Mehta Investment Interrmediates.
TVS Motor stock performance
The share price of TVS Motor has risen 0.62% in the last five trading days. The stock has risen 14% in the previous one month and 13.5% in the last six months. TVS Motor’s share price raised investors’ wealth by 36% in the previous one year.