TVS Motor Company Shares Hit 52-Week High on Entry into Key European Markets

TVS Motor Company’s stock price surged nearly 2% to reach a 52-week high of ₹1,712.70 per share on the BSE following the announcement of the company’s entry into key European markets through a distribution and import agreement with Emil Frey, a prominent automotive distributor with a century-long legacy. The agreement aims to leverage Emil Frey’s extensive distribution network and market insights in Europe, marking a significant step toward global expansion for TVS Motor Company.

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, noted that the stock witnessed a gap-up opening and, despite minimal post-opening traction, remains in an uptrend. He anticipates the up-move to continue, suggesting that investors consider buying on dips. The immediate support is at ₹1,670, while ₹1,740 serves as the immediate resistance.

In an exchange filing, TVS Motor Company highlighted the partnership as a strategic move to offer European customers a diverse range of high-performance and technologically advanced two-wheelers. Emil Frey Group companies will handle the distribution of TVS products in select European nations through their sales, marketing, and service networks. The product lineup for the European market includes TVS Jupiter 125, NTORQ, Raider, iQube S, TVS X, TVS Ronin, TVS Apache RR 310, and TVS Apache RTR 310.

TVS Motor’s products are currently available in over 80 countries across Asia, Africa, and Latin America. Exports contribute to approximately 25% of the company’s revenue, as of H1 FY 2023.

TVS Motor Company reported a 32% growth in net profit, reaching ₹537 crore for Q2 FY2023-24, compared to ₹408 crore in Q2 FY2022-23. Operating revenue also increased by 13%, reaching ₹8,145 crore in the September quarter of FY 2023-24, up from ₹7,219 crore in the same period last year.

The stock price of TVS Motor Company has risen by 7% in November and has witnessed a significant surge of 58% throughout the year 2023.