TVS Motor hits new peak, surpasses Sep 2024 high; is it good time to buy?

Business Standard

5 hours ago

TVS Motor Company share price
Shares of TVS Motor Company hit an all-time high of ₹2,959.95, gaining 1 per cent on the BSE in Friday's intra-day trade on expectations of earnings improvement. The stock price of the two-wheeler company surpassed its previous high of ₹2.958.15, recorded on September 27, 2024.
TVS Motor was quoting higher for the fourth straight trading day, surging 6.5 per cent during the period. The stock has recovered 33 per cent from its April month low of ₹2,221.05 on the BSE.
Thus far in the calendar year 2025, TVS Motor has outperformed the market by soaring 23 per cent. In comparison, the BSE Sensex was up 7 per cent and the BSE Auto index gained 3 per cent during the same period.
TVS Motor Management Outlook
There is a reduction in the benchmark repo rate, which definitely translates into lower EMI for consumers. It is going to help enhance the affordability for two-wheelers across the board.
Another major impetus, which is in the Union Budget is income tax rebate under the new tax regime which is hiked from ₹7 lakh to ₹12 lakh. An additional savings is also likely to support the consumer sentiments. Consistent infrastructure improvement by the government, which is also going to vitalize the economy and improve the quality of life in the mid-term and the long-term. The management is expecting a normal monsoon which is going to also improve the rural sentiment and economy.
The management is expecting a positive sentiment with an uptick in the replacement cycle this year. Overall growth momentum in the domestic market, the management said they are expecting is likely to be like last year.
CARE Ratings view on TVS Motor
TVS Motor has established its position in the two-wheeler segment with improving market share year-over-year (y-o-y) in internal combustion engine (ICE) and electric vehicle (EV), while maintaining its strong position in the three-wheeler segment and diversified geographic profile.
CareEdge Ratings observes the exports grew by ~14 per cent in FY25 and expects it to further increase going ahead. With continuous brand building and positioning of product categories with the local demand, TVS Motor has been able to expand its presence beyond south and currently has a significant presence in all the regions, in terms of its sales.
Driven by price hikes, premiumisation of product mix, softening commodity prices and sustained cost reduction initiatives, its operating profit margins for automobile business marginally improved from 8.64 per cent in FY24 to 9.92 per cent in FY25, while improving its market share to 13.8 per cent (PY: 13.7 per cent) and 25.6 per cent (PY: 24.7 per cent) in motorcycle and scooter segments in FY25.
Technical outlook on TVS Motor
According to Choice Broking, a decisive close above ₹2,852, supported by strong volumes, would confirm the breakout and potentially trigger the next leg of the uptrend.
From a trading perspective, a buy-on-dips strategy near the ₹2,790 level could present a favorable entry opportunity, with a positional stop-loss placed at ₹2,650. Once the breakout is confirmed, the stock could advance towards ₹3,256 and beyond, offering an attractive risk-reward setup for positional traders, the brokerage firm said.
About TVS Motor
TVS Motor is among the largest two-wheeler manufacturers in India. It currently manufactures a wide range of two-wheelers and three-wheelers with a total installed manufacturing capacity of 5.5 million two-wheelers and 3 lakh three-wheelers per annum as on March 31, 2025. The company also set up a wholly-owned subsidiary in Indonesia in 2007, PT TVS Motor Company Indonesia (PT TVS), for manufacturing motorcycles. In 2020, the company acquired 100 per cent stake in The Norton Motorcycle Company Limited, UK. TVS Motor is also the only company to have a presence in the moped segment for the domestic market.