Jefferies has maintained its buy rating on TVS Motor Company, raising the target price to ₹3,500 from ₹3,300 per share. The stock was trading at ₹2,809.00 at the time of the report, indicating a potential upside of nearly 25%.
The brokerage noted that EBITDA and net profit grew 32–36% year-on-year in Q1FY26, which was in line with its estimates. Jefferies remains optimistic about Indian two-wheeler (2W) demand, although it has revised down its FY25–28 industry volume CAGR forecast from 10% to 8%, suggesting a more tempered growth trajectory.
A key highlight for TVS is its market share in the domestic 2W segment, which has climbed to a 22-year high, reflecting strong competitive positioning and consumer preference.
Looking ahead, Jefferies expects a 13% CAGR in volumes and a 24% CAGR in earnings per share (EPS) over FY25–28. The brokerage also mentioned that its FY26–28 EPS projections are 5–18% above street estimates, implying strong confidence in the company’s earnings trajectory.
Disclaimer: This article is based on Jefferies’ stock research report. The views and target price mentioned are theirs. This does not constitute a recommendation to buy or sell any stock. Please consult a registered financial advisor before making any investment decisions.
