Stock to buy: Emkay Global raises TVS Motor share price target; stock remains top pick in auto OEMs

Stock to buy: Emkay Global raises TVS Motor share price target; stock remains top pick in auto OEMs
Stock to buy: Emkay Global raises TVS Motor share price target; stock remains top pick in auto OEMs

TVS Motor share price has fallen around 15% from its recent peak even as the company continues to improve its positioning across categories in FY24. TVS Motor shares hit a record high of 2,313.90 apiece on March 07, 2024. The stock has been falling since then.

While TVS Motor share price has fallen over 4% in one month, the stock has rallied over 77% in the past one year and given multibagger returns of more than 267% in three years.

Analysts at Emkay Global Financial Services raised TVS Motor share price target to 2,250 apiece, while retaining its ‘Buy’ rating. TVS Motor Company is Emkay Global’s top pick in Auto OEMs.

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TVS Motor Company, the two-wheeler and three-wheeler manufacturer, remains the only two-wheeler maker to have substantially expanded its presence in the premium categories with notable share gains. This has been achieved while consistently gaining revenue and EBITDA share versus peers, on improving brand franchise and operating leverage, said Chirag Jain, Senior Research Analyst at Emkay Global Financial Services.

The recovery in the two-wheeler industry continues. Emkay Global maintains its belief that the replacement-led upturn provides a 2-3-year growth visibility in two-wheelers, even as underlying metrics for passenger vehicles (PVs) continue to weaken and commercial vehicles (CVs) are poised for a downcycle.

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The brokerage house builds-in 16%, 25% and 29% CAGR in revenue, EBITDA and earnings per share (EPS) estimates over FY24 – FY26 on the back of improving competitive positioning across two and three wheelers, expected continuation of two-wheeler recovery, emergence as the leader among incumbents in electric two-wheelers, and margin triggers.

At 12:00 pm, TVS Motor shares were trading 0.21% higher at 1,956.00 apiece on the BSE.

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Disclaimer: The views and recommendations made above are those of individual analysts or brokering companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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