TVS Motor Shares Jump As Morgan Stanley Eyes 30-Day Uptrend — Check Target Price

Shares of TVS Motor Company jumped nearly 3% on Wednesday, May 20, after global brokerage Morgan Stanley maintained its bullish 'overweight' stance on the auto stock and suggested that it believes the stock will rise for the next 30 days. TVS Motor's stock repurchase plan and strong financial metrics will act as positive catalysts to drive the rally, according to Morgan Stanley analysts. The brokerage has pegged a 'tactical buy' call on TVS Motor Company with a target price of Rs 4,327.

Shares of TVS Motor Company opened at Rs 3,285.40 on the NSE, over 1% higher than its previous close of Rs 3,283.40. The stock gained momentum and rose nearly 3% to hit an intraday high of Rs 3,368 apiece on the NSE. TVS Motor Company shares last traded 2.105 higher at Rs 3,352.30 apiece on the NSE. The company commands a market cap of Rs 7,96,008.46 crore. The stock has dropped 5% in one week, 11% in one month, 12% on a year-to-date basis. However, it has gained over 21% in one year.

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TVS Motor Shares Intraday

According to Morgan Stanley, TVS Motor Company shares will likely outperform in the near-term given the company's past record, valuations, and upcoming catalysts. For the first 19 days of May, the two-wheeler industry volumes are up 6% YoY, while TVS has seen 9.5% YoY volume growth. Analysts expect May wholesale to grow around 16% YoY compared to 7% YoY growth in April, as the supply has normalized. TVS trades at 16.5x FY28 EV/EBITDA compared to peers Bajaj Auto which trades at 16x and Eicher Motors which is at 19x. Morgan Stanley analysts believe TVS should trade at a higher premium compared to its industry peers, given its broad-based product portfolio, market share gains, and the upside margin potential.

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TVS Motor Company Q4 Results

TVS Motor Company posted a 31.1% year-on-year rise in net profit to Rs 998 crore for the fourth quarter of FY25, falling short of Bloomberg's consensus estimate of Rs 1,041 crore, even as revenue broadly met expectations. Revenue for the quarter grew 34.1% to Rs 12,808 crore, compared with Rs 9,550 crore in the year-ago period and broadly in line with the street's Rs 12,812 crore forecast. EBITDA rose 26.3% to Rs 1,680 crore, though the margin contracted 80 basis points year-on-year to 13.1% from 13.9%.

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