TVS Motors rises 5% on Q3 results. What should investors do now?

Shares of two-wheeler manufacturer TVS Motors rallied nearly 5% to Rs 1,034 on Wednesday's trade after the company reported a 22.1% year-on-year (YoY) jump in its net profit to Rs 352 crore for the quarter ended December 31, 2022. The company had reported a profit of Rs 288.3 crore in the same quarter of the previous fiscal year.

The company's operating revenue grew 15% at Rs 6,545 crore for the quarter against Rs 5,706 crore in the year-ago quarter.

Its operating EBITDA grew 16% to Rs 659 crore for the quarter under review against Rs 568 crore in the previous year.

Meanwhile, the company’s operating EBITDA margin for the quarter is at 10.1% against the operating EBITDA margin of 10% reported in the third quarter of 2021-22.

TVS Motors registered total two-wheeler sales of 8.36 lakh units in December 2022 quarter against 8.35 lakh units in the year-ago quarter. Two-wheeler export sales were registered at 2.07 lakh units against 2.53 lakh units in December 2021.

In the last one year, the scrip has surged about 66%, whereas it has lost around 4% on a year-to-date basis.

Should you buy, sell or hold Yes Bank stock? Here's what brokerages say:

Prabhudas Lilladher
Prabhudas Lialladher maintained its buy rating on TVS Motors with a target of Rs 1,240, signaling an upside potential of 20% from the current price of Rs 1,034 per share.

"We believe TVS will be able to grow ahead of the industry and sustain its momentum led by new product launches in ICE & EV segments, improving exports & premiumization and margin improvement helped by cost reduction efforts, operating leverage, and price hikes which would more than offset the negative impact from higher EV mix," it said.

JM Financial
"With the expected pick-up in rural sales, robust premium product portfolio, and recovery in export demand, TVSL is one of our top picks in the 2W space. We estimate revenue/EPS CAGR of 17%/36% over FY22-25E. We re-iterate Buy with a March 2024 TP of Rs 1,225 (25x fwd. earnings)," it said.

HDFC Securities
"With supply challenges now largely over, we expect TVS’ outperformance to continue on the back of the ramp-up of its launches, including the new Ronin and Raider. Even in EVs, it seems to be ahead of its listed peers with a strong product pipeline in place for the next 24 months; it has signed up with industry experts and JV partners to emerge as a leading player in EVs. We maintain Buy with an unchanged TP of Rs 1,275/share, valued at 28x September 24 EPS," it said.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)