TVS Motor Share Price Declines After Goldman Sachs Maintains ‘Neutral’ Stance

TVS Motor Company Ltd.'s share price declined over 1% on Monday despite Goldman Sachs raising its 12-month price target to Rs 3,430, up from Rs 3,110 earlier, citing upcoming product launches and easing supply constraints. The brokerage maintains a ‘Neutral’ rating on the stock.

Goldman Sachs stated, “TVS Motor is reported to launch an NTORQ 150 scooter and a new Electric Scooter over Aug 28 to Sept 1.”  The brokerages believes these launches will reinforce TVS’s leadership in both the Indian Electric and ICE scooter markets.

Goldman Sachs also noted an improvement in supply chain dynamics, saying, “The rare earth metal shortage situation appears to have abated for the time being for Indian EV manufacturers.” These developments have been factored into the firm’s revised financial model for TVS Motor.

However, the brokerage made it clear that its estimates do not include any speculative benefits from potential tax reforms. “We do not build in any upside from potential GST rationalisation, as these measures are yet to be announced by the Government of India,” the note emphasised.

The scrip fell as much as 1.06% to Rs 3,259.80 apiece. It pared losses to trade 0.32% lower at Rs 3,284 apiece, as of 10:10 a.m. This compares to a 0.14% advance in the NSE Nifty 50 Index.

It has risen 18.33% in the last 12 months. The relative strength index was at 77.

Out of 42 analysts tracking the company, 25 maintain a 'buy' rating, 10 recommend a 'hold,' and seven suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 9.5%.