Jefferies has maintained its buy rating on TVS Motor but has cut the share price target to ₹3,270, indicating a 26.9% upside from the current market price (CMP). In Q2, TVS Motor’s EBITDA grew by 20% year-on-year but fell short of estimates by 4%, with EBITDA margin rising by 20 bps quarter-on-quarter.
TVS expects domestic 2-wheeler (2W) sales to grow by 7-8% in Q3, with the company outpacing the industry’s growth. Jefferies believes TVS will benefit from the revival of 2-wheeler demand in both domestic and export markets, with an improving franchise driving further margin expansion.
The brokerage has also cut its FY25-27 EPS estimates by 3-4% but still expects EPS to more than double over FY24-27.
Currently, TVS Motor’s stock is trading at ₹2,577.95.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.
