Sharekhan recommends buying this auto stock for 19% return

target price

The current market price (CMP) of TVS Motor is Rs. 673. Brokerage firm Sharekhan Recommends has a target price for the stock of Rs. 803. Therefore, the stock is expected to provide a return of 19.3% over a target period of 1 year .

Stock outlook
Current market price (CMP) Case 673
target price Case 803
1 year return 19.30%
Corporate performance

Corporate performance

TVS has gained market share in the two-wheeler industry, with the number increasing from 11.8% in FY 2014 to around 14.2% in H1 FY2022% in FY2014 to 26% in FY2021. Driven by a strong volume outlook and margin expansion, Sharekhan expects robust earnings growth of 51.9% CAGR in FY21-23E.

Sharekhan's comments

Sharekhan’s comments

Sharekhan said, “The company has set a strategy to grow its export volume over the next 4-5 years by cementing its position of having a presence and entering new markets. It expects and should see robust scooter demand Return category share. ” of 30-32% in the industry. “The company added,” TVSM and BMW Motorrad have further deepened their relationship and expanded the partnership to jointly develop new platforms. “

about the company

about the company

TVS is the third largest two-wheel manufacturer in India. Their motorcycles and scooters account for 40% and 33% of the volume, respectively. TVS also produces 3W (5% of the total volume) mainly for the export market. TVS focuses on the overseas market, which accounts for around 25% of the total volume. The company continues to focus on electric vehicles and has announced its plan to invest Rs. 1,000 crore in EVs.

Disclaimer of liability

The above stock was selected from Sharekhan’s brokerage report. Investing in stocks carries the risk of financial loss. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any damage resulting from decisions made based on the article.


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