TVS Motor Sales Up 7% In December

TVS Motor Co.'s total sales in December rose 7% to 3.21 lakh units as compared to 3.01 lakh units in the same month last year, the company reported on Thursday.

The auto maker sold 3.12 lakh two-wheelers in December, 8% higher than the 2.9 lakh units sold in the same period in 2023, the company said in a regulatory filing. However, the domestic two-wheeler sales saw a marginal growth at 2.15 lakh units in comparison to 2.14 lakh units sold in December last year.

Exports registered a 22% increase at 1.04 lakh units last month, from 85,391 units in December 2023.

The company said its electric vehicle sales rose 79% last month at 20,171 units as compared to 11,288 units in December 2023. Three-wheeler sales were lower at 9,685 units last month as against 11,834 units in December 2023.

In addition Emkay Global Research on Thursday upgraded TVS Motor to 'buy' from 'add' as it expects improved exports outlook to drive growth in the two-wheeler industry moving forward. It raised the target price to Rs 2,800 from Rs 2,600. The current target price implies an 18.99% upside from Tuesday's closing price.

The upgrade comes as the company's position is improving across categories despite normalised supplies at Honda Motor Co., Emkay Global Research said. The company has also sustained a margin expansion. It's also close to the second top player in the two-wheeler industry.

TVS Motor stock rose as much as 4.21% during the day to Rs 2,508 apiece on the NSE. The stock closed 3.94% lower at Rs 2,501.45 per share, compared to a 1.88% advance in the benchmark Nifty 50. It has risen 27.03% in the last 12 months.

Out of 44 analysts tracking the company, 20 maintain a 'buy' rating, 12 recommend a 'hold' and as many suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 5.1%.

(With Input From PTI)