Goal: ₹2,800
CMP: ₹2,419.70
Regardless of moderating progress momentum within the home 2W business post-festive, we anticipate TVS Motor’s EPS CAGR to stay sturdy at 27 per cent over FY25E-27. TVS Motor is benefiting from its concentrate on ‘progress classes’ of scooters, premium bikes and exports, continued market-share positive factors (particularly in scooters, exports), in addition to from the sustained margin growth (with PLI advantages additionally being mirrored This fall-FY25 onward).
The corporate has strengthened its presence in high-growth segments like premium bikes, scooters, and exports, pushed by sustained shopper insight-led improvements (figuring out progress classes, shopper preferences, incubating and rising a number of new manufacturers – a uncommon business phenomenon).
We spotlight TVS Motor’s continued outperformance sustaining even in current months (additionally mirrored in vahan retails) in addition to its robust positioning in E-2Ws (typically one of many top-2in the previous couple of months). After the current 10 per cent correction in inventory worth, TVS Motor trades at 27x Dec-26E core PER.
We preserve Purchase on TVS Motor and our TP of ₹2,800 at unchanged 30x Dec-26E PER + ₹180/sh for the captive financing arm.
