TVS Motor Company has delivered impressive financial results, showcasing a remarkable 76% increase in net profit, reaching Rs 852 crore for Q4FY25. This surge is primarily attributed to enhanced other income, reduced interest expenses, and a favorable tax environment. As a result, several brokerages have reacted positively, adjusting their target prices upward, with Nuvama predicting nearly 20% growth from current levels.

Nuvama’s Positive Outlook on TVS Motor

The brokerage firm Nuvama Institutional Equities anticipates that TVS Motor will continue to capture market share both domestically and internationally. They stated, “We expect to see improvement in margins due to better scale, increased benefits from the Production-Linked Incentive (PLI) scheme, and effective cost management.” Consequently, Nuvama has revised its earnings per share (EPS) forecast upward by 3% for FY26-27, driven by optimistic revenue projections. The target price has been adjusted slightly from Rs 3,100 to Rs 3,200, maintaining a ‘Buy’ recommendation on the stock.

Impressive Q4 Results for TVS Motor

TVS Motor’s revenue reached Rs 9,550.4 crore, marking a 16.9% year-on-year growth and a 5% quarter-on-quarter increase. This performance exceeded market expectations, propelled by strong sales across both domestic and export markets.

• Scooters led the charge with a 21.2% year-on-year increase in volume.
• Motorcycles followed, showing a 10.3% growth.
• Mopeds also saw a 5.3% rise in sales.
• Notably, electric vehicle (EV) sales surged 31% year-on-year in Q4FY25.
• However, the three-wheeler segment experienced a downturn, with volumes declining by 8% year-on-year.

TVS Motor’s EBITDA reached Rs 1,332.6 crore, reflecting a 43.9% increase year-on-year and a 23.2% sequential rise. The expansion in margins by 262 basis points year-on-year can be credited to operational efficiencies and the annual PLI benefits recorded in Q4, according to insights from Asit C Mehta Investment Intermediates.

Stock Performance Highlights

In the past week, TVS Motor’s share price has appreciated by 0.62%. Over the last month, the stock has gained 14%, and in the previous six months, it has increased by 13.5%. Impressively, TVS Motor shares have boosted investor wealth by 36% in the last year.

For those interested in the automotive sector, TVS Motor’s impressive financial performance and strategic outlook position it as a strong contender in the market. Keep an eye on how these developments may influence your investment decisions.