TVS Motor shares jump on record profit, brokerages raise targets
TVS Motor shares rallied for a second day after the Indian two-wheeler manufacturer posted record first-quarter earnings, prompting analysts to raise price targets on expectations of sustained market share growth.
Shares in TVS Motor Company climbed 4.6% to an intraday high of ₹3,965 on Wednesday, adding to a 5.6% jump in the previous session. The two-day rally of nearly 10% pushed the stock close to its 52-week high of ₹3,970, driven by the company's April-June results which showed record quarterly sales.
Consolidated profit for the first quarter of fiscal 2027 surged 67.1% year-on-year and 32.1% quarter-on-quarter to ₹1,019.43 crore. Revenue increased 33.5% year-on-year and 8.3% quarter-on-quarter to ₹16,295.52 crore. EBITDA rose 41.2% to a record ₹1,779 crore, while EBITDA margins improved by 30 basis points to 12.8%.
The results prompted several brokerages to lift their earnings estimates and price targets. Motilal Oswal Financial Services maintained a buy rating with a target of ₹4,470, raising its earnings-per-share estimates by 8% for FY27 and 5% for FY28. The firm projects a compound annual growth rate of 20% for revenue and 24% for profit over FY26-28.
JM Financial also kept its buy recommendation, raising its target to ₹4,400 from ₹4,220 based on a 37 times FY28E valuation multiple. "We factor in nearly 12.7% domestic two-wheeler volume growth for TVS in FY27E, supported by market share gains and a strong product portfolio. We build in nearly 17% YoY export volume growth for FY27E. TVS is expanding capacity across ICE, EV and exports, supporting future growth," said JM Financial.
Choice Institutional Equities holds an "add" rating with a ₹4,250 target, citing sustained growth momentum from capacity expansion, premiumisation, and export recovery. However, the firm warned that commodity inflation and elevated investments in electric vehicles and global expansion could moderate near-term margin expansion.
