Shares of TVS Motor, a top Indian two-wheeler manufacturer, jumped by 4.10% in early trading, reaching a new all-time high of ₹2,818 per share. This surge came after global brokerage firm UBS raised its target price for the stock to ₹3,200 from ₹3,000, while keeping a ‘buy’ rating.
The target price was increased following the launch of the new Jupiter 110 scooter, which features an upgraded engine and advanced features. The Jupiter scooter has been a key driver of TVS Motor’s success in the scooter market, contributing to a 16.5% year-over-year increase in domestic sales, with 1.45 million units sold in FY24.
UBS highlighted that the new Jupiter model is a significant improvement over its predecessor and competitors, while still being offered at a similar price. This launch is expected to add 15,000–20,000 units to TVS Motor’s sales volume, which could account for about 7% of its two-wheeler sales and 5% of its overall sales volume.
UBS also sees further growth opportunities for TVS Motor with the upcoming launch of a new electric two-wheeler and its entry into the electric three-wheeler market.
Analysts at Nomura, another brokerage firm, are also positive about TVS Motor’s future, especially after the company reported strong earnings for the first quarter of FY25. Nomura believes TVS will outperform the industry across all segments and could gain market share with more successful product launches, though rising competition might affect profit margins.
Jefferies, another global firm, also has a “buy” rating on TVS Motor, raising its price target to ₹3,000. Jefferies expects TVS’s earnings per share to more than double over the next three years, supported by strong growth, especially as rural demand for motorcycles picks up.
In the quarter ending June, TVS Motor reported a 23.5% increase in profit, reaching 5.77 billion rupees, driven by strong demand for its two-wheelers and healthy margins. The company’s total two-wheeler sales in India grew by 20.4%, with TVS’s sales rising by 14.1% to over one million units.
This strong performance is attributed to the popularity of premium motorcycles like the ‘Apache’ series, the growth of electric vehicle sales, and a recovery in exports, which make up nearly a quarter of TVS’s overall revenue.
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