Shares of Chennai-based TVS Motor Co. crossed the four-digit mark last week and has risen for 10 out of the last 11 trading sessions. The stock hit a new 52-week high of Rs 1,071 on Monday.
It was not just a wow factor number or the fact that the stock doubled in about seven months. A closer look shows it is the best performing two-wheeler stock in a decade—a return of 26 times.
TVS has raced past Royal Enfield (Eicher Motors Ltd.) and left the other two peers miles behind. The good old Bajaj Auto Ltd. and the Hero MotoCorp. struggled to cross even one lap.
Just to add a flavour to the story: TVS was faster than a Royal Enfield but slower than a tractor. Yes, Escorts gave a return of 30 times, if we look at the vehicle sector.
Ten years is a good long-term period to look at when it comes to investing. So, if you had invested Rs 10,000 in TVS Motor, it is worth Rs 2.26 lakh, while Eicher would be worth Rs 1.5 lakh and Escorts about Rs 3.1 lakh. Bajaj Auto and Hero had a poor showing. You would have been better off if you had placed your money in a bank deposit.
TVS clocked a return of 26 times since 2012. A long-term feat which can be termed as a multi-bagger in common market parlance. So was Eicher!
What next, then? Will the run continue? Buy, sell or hold? Well, these are questions well left to sector specific experts. But one thing is sure, conviction and discipline pay. As the good old saying goes, buy it and lock it if you are sure of what you are buying!
Of the 49 analysts tracking TVS Motor, 31 maintain 'buy' and 10 suggest 'hold', while eight recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an downside of 11.7%.
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