Broker’s call: TVS Motor (Buy)
Target: ₹2,800
CMP: ₹2,292.45
In a recent interview, Sudarshan Venu, MD, TVS Motor highlighted that: The 2W industry demand is recovering strongly in the initial 3 weeks of Jan-25, with a resumption in government capex which sets a positive tone for CY25/FY26; 2W industry is projected to grow in double-digits in FY25, with TVSL aiming for outperformance driven by continued product actions across ‘growth’ categories like premium motorcycles (premium off-road motorcycle to be launched during CY25) and scooters (the recently launched Jupiter 110 has been received well);
Key export markets like Africa are now rebounding and are on a positive trajectory; TVSL will continue to introduce new products in E-2Ws as well as in E-3Ws; Battery prices are declining and expected to fall further over the next decade amid ongoing innovations by OEMs. This, along with other innovations/cost reduction measures, and scale should improve EV profitability.
We also note that TVSL has now attained leadership in E-2Ws (25 per cent market share) after surpassing Ola and Bajaj Auto in Jan-25. We believe that amid an evolving E-2W industry landscape, TVSL remains an outperformer in overall 2Ws, driven by strong product actions (in ICE and EV) and sustained margin improvement, supported by the ongoing export recovery in key markets like Africa.
After the recent 23 per cent correction from the peak, TVSL trades at 25x Dec-26E core PER.
