TVS Motor Company Ltd (TVSM) is a prominent player in the Indian two-wheeler and three-wheeler manufacturing industry. With a market capitalization of ₹96,833cr and a current stock price of ₹2,038, this Indian multinational motorcycle manufacturer is recognized as the third-largest motorcycle company in India by revenue. TVS Motor Company boasts an impressive annual production capacity of over four million vehicles, producing three million units each year. Notably, it is the second-largest two-wheeler exporter in India, with a presence in over 60 countries.
In this article, we’ll delve into the comprehensive aspects of TVS Motor Company, shedding light on its operations, achievements, and significance in the industry.
About TVS Motor Company
TVS Motor Company boasts a storied history that commenced with T. V. Sundaram Iyengar’s initiation of Madurai’s first bus service in 1911, which laid the foundation for the company’s entry into the transportation business. Over the years, it evolved into a significant player in the automotive industry. In 1962, Sundaram Clayton was founded in collaboration with Clayton Dewandre Holdings, UK, primarily focusing on producing automotive components. The company expanded its footprint in 1976, setting up a manufacturing plant in Hosur and venturing into the two-wheeler market. A significant milestone was reached in 1980 with the launch of the TVS 50, India’s first two-seater moped.
In 1987, a pivotal collaboration with Suzuki Motor Corporation marked the establishment of a joint venture, paving the way for the commercial production of motorcycles in 1989. Today, TVS Motor Company operates manufacturing facilities in Tamil Nadu, Karnataka, and Himachal Pradesh, with a substantial annual production capacity for two-wheelers and three-wheelers. Notable recent launches, like the TVS Jupiter ZX Disc intelligent and collaborations with Marvel Studios, demonstrate TVS’s commitment to innovation and its enduring presence as a leading two-wheeler manufacturer in India and beyond.
TVS Motor Q3 FY24 results Highlight
- TVS Motor Company released its Q3 FY24 results on January 24, 2024.
- The company witnessed a remarkable 59% year-on-year surge in consolidated net profit, reaching ₹479 crore.
- Consolidated revenue from operations experienced substantial growth, rising to ₹10,114 crore from ₹8,066 crore year-on-year.
- Standalone net profit showed an impressive increase of 68% year-on-year, reaching ₹593 crore.
- Standalone revenue from operations also saw a notable uptick, reaching ₹8,245 crore compared to ₹6,545 crore in the same period last year.
- Total two-wheeler sales for the quarter reached 10.63 lakh units, marking a significant increase from 8.36 lakh units in the previous year.
- Additionally, two-wheeler exports rose to 2.16 lakh units from 2.07 lakh units year-on-year.
- These results underscore TVS Motor Company’s robust performance and strategic market positioning.
One can buy TVS Motor Company shares from the following trading platforms:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
TVS Motor Unveils TVS Jupiter 125 with SmartXonnect Technology
TVS Motor Company has introduced the TVS Jupiter 125, equipped with SmartXonnect technology, introducing a new benchmark in the segment. The scooter comes with cutting-edge connected features, emphasizing the importance of staying connected in today’s fast-paced world. Aniruddha Haldar, TVS’s Senior Vice-President for Commuters, Corporate Brand, and Dealer Transformation, highlighted the innovative SmartXtalk and SmartXtrack features, which promise to enhance the riding experience. This move expands TVS’s product range while also offering a technologically advanced solution for modern commuters. The TVS Jupiter 125 is set to significantly impact the market with its pioneering features.
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| March 2024 | ₹2,044.90 | ₹1,778.17 |
| April 2024 | ₹1,985.34 | ₹1,726.38 |
| May 2024 | ₹1,956.00 | ₹1,700.87 |
| June 2024 | ₹2,026.42 | ₹1,762.10 |
| July 2024 | ₹2,006.15 | ₹1,744.48 |
| August 2024 | ₹2,086.40 | ₹1,814.26 |
| September 2024 | ₹2,169.85 | ₹1,886.83 |
| October 2024 | ₹2,127.31 | ₹1,849.83 |
| November 2024 | ₹2,212.40 | ₹1,923.83 |
| December 2024 | ₹2,234.52 | ₹1,943.06 |
In March 2024, TVS Motor’s maximum price is expected to reach around ₹2,044.90, indicating potential growth and market activity, while the minimum price may stabilize near ₹1,778.17, providing a floor for investors amidst fluctuations. As April unfolds, TVS Motor’s maximum price is projected to hover around ₹1,985.34, with the minimum likely to hold steady at approximately ₹1,726.38, reflecting stability amid market movements. Moving into May, TVS Motor’s maximum price is anticipated to remain at approximately ₹1,956.00, while the minimum price is forecasted to stabilize near ₹1,700.87, underscoring resilience in the face of market dynamics. By December 2024, TVS Motor’s prices are forecasted to peak at around ₹2,234.52 at maximum and ₹1,943.06 at minimum, showcasing potential growth and stability in the market.
| Month | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| January 2025 | ₹2,236.76 | ₹1,720.58 |
| February 2025 | ₹2,241.24 | ₹1,724.03 |
| March 2025 | ₹2,288.31 | ₹1,760.24 |
| April 2025 | ₹2,243.44 | ₹1,725.72 |
| May 2025 | ₹2,178.10 | ₹1,675.46 |
| June 2025 | ₹2,276.11 | ₹1,750.85 |
| July 2025 | ₹2,231.48 | ₹1,716.52 |
| August 2025 | ₹2,300.49 | ₹1,769.61 |
| September 2025 | ₹2,328.10 | ₹1,790.85 |
| October 2025 | ₹2,388.63 | ₹1,837.41 |
| November 2025 | ₹2,448.35 | ₹1,883.34 |
| December 2025 | ₹2,558.52 | ₹1,968.09 |
As we step into January 2025, TVS Motor’s maximum price is likely to reach around ₹2,236.76, indicating potential growth and activity in the market. Meanwhile, the minimum price might settle near ₹1,720.58, providing a stable base for investors amidst market fluctuations. As February rolls in, we can expect TVS Motor’s maximum price to hover around ₹2,241.24, with the minimum price holding steady at approximately ₹1,724.03, reflecting stability amid market movements. Moving forward, March 2025 could witness TVS Motor’s maximum price rising to about ₹2,288.31, while the minimum price may stabilize near ₹1,760.24, suggesting resilience and potential growth in the market. And as the year progresses, TVS Motor’s prices are projected to peak at ₹2,558.52 at maximum and ₹1,968.09 at minimum in December 2025, showcasing continued growth and stability in the market.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹3,149.78 | ₹2,027.14 |
| 2027 | ₹3,840.02 | ₹2,471.36 |
| 2028 | ₹4,681.52 | ₹3,012.94 |
| 2029 | ₹5,707.43 | ₹3,673.19 |
| 2030 | ₹6,958.15 | ₹4,478.14 |
TVS Motor’s stock is positioned for a significant upward trajectory in the forthcoming years. Starting from 2026, analysts foresee a promising outlook with the maximum price projected to reach ₹3,149.78, while the minimum price is expected to stabilize at ₹2,027.14, indicating potential growth and stability in the market. As we progress through the years, this upward trend is anticipated to persist, with forecasts suggesting that by 2030, TVS Motor’s stock could potentially soar to a maximum price of ₹6,958.15, accompanied by a minimum price of ₹4,478.14. These projections highlight the company’s potential for substantial growth and market resilience, offering investors opportunities for long-term investment and value appreciation in the dynamic automotive sector.
TVS Motor Financial Condition: Last 5 Years
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Sales (in Crores) | 20,160 | 18,849 | 19,421 | 24,355 | 31,974 |
| Expenses (in Crores) | 17,997 | 16,585 | 17,189 | 21,601 | 27,947 |
| Operating Profit (in Crores) | 2,163 | 2,264 | 2,232 | 2,755 | 4,027 |
| OPM (%) | 11% | 12% | 11% | 11% | 13% |
| Other Income (in Crores) | 25 | 12 | 36 | -5 | 136 |
| Interest (in Crores) | 663 | 855 | 881 | 940 | 1,368 |
| Depreciation (in Crores) | 442 | 556 | 565 | 743 | 859 |
| Profit before Tax (in Crores) | 1,083 | 865 | 822 | 1,067 | 1,936 |
| Tax % | 33% | 25% | 26% | 31% | 32% |
| Net Profit (in Crores) | 725 | 647 | 608 | 731 | 1,309 |
| EPS (in Rs) | 14.83 | 13.15 | 12.51 | 15.93 | 27.97 |
| Dividend Payout % | 24% | 27% | 28% | 24% | 18% |
Over the last five years, TVS Motor has shown a consistent pattern of financial performance, reflecting its strength and resilience in the automotive industry. The company’s sales have steadily increased, with the most recent figure in 2023 reaching ₹31,974 crores, marking significant growth compared to ₹20,160 crores in 2019. This upward trajectory is mirrored in the operating profit, which saw a remarkable increase from ₹2,163 crores in 2019 to ₹4,027 crores in 2023, demonstrating a healthy operating margin.
Moreover, TVS Motor’s profitability remained robust. Net profits climbed from ₹725 crores in 2019 to ₹1,309 crores in 2023, and earnings per share (EPS) followed a similar trend, reaching ₹27.97. The company’s prudent fiscal management is evident in its ability to maintain consistent dividend payouts, with a recent figure of 18% in 2023. Despite economic fluctuations, TVS Motor’s financial condition over the last five years showcases its steady growth and commitment to delivering value to its shareholders and customers in the competitive automotive market.
FAQs
What is TVS Motor Company’s current market capitalization?
TVS Motor’s current market capitalization is ₹96,833 Crores.
What is the current share price target for TVS Motor Company?
As of March 19, 2024, TVS Motor Company is trading on ₹ 2,038.
What is the share price target for TVS Motor in 2025?
The share price target for TVS Motor in 2025 ranges from ₹1,675.46 (minimum) to ₹2,558.52 (maximum).
What is the current PE (Price-to-Earnings) ratio for TVS Motor Company?
The current PE ratio for TVS Motor Company is 59.3
How has TVS Motor’s net profit changed from 2019 to 2023?
TVS Motor’s net profit increased from ₹725 crores in 2019 to ₹1,309 crores in 2023.
How much did TVS Motor’s sales increase from 2019 to 2023?
TVS Motor’s sales increased from ₹20,160 crores in 2019 to ₹31,974 crores in 2023.
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In conclusion, TVS Motor Company has established itself as a prominent and steadily growing player in the Indian automotive industry. Over the past several years, the company’s financial performance reflects a positive trajectory, with notable increases in key financial metrics. The consistent growth in sales, operating profits, and net profits underscores the company’s ability to effectively navigate a competitive market and generate value for shareholders.
One particularly encouraging aspect is the share price targets, which suggest a positive market sentiment and the potential for future growth. The range of price targets for 2024 and the projected values for 2025 and 2030 demonstrate an optimistic outlook for the company’s stock performance. These forecasts, of course, come with the caveat that they are subject to change based on evolving market dynamics and economic conditions. Investors should be mindful of the inherent volatility in financial markets and the impact of external factors such as economic policies, geopolitical events, and global economic trends.
It’s essential to remember that investments in the stock market carry inherent risks, and past performance does not necessarily indicate future results. While TVS Motor has shown consistent growth and financial stability in the recent past, the company operates in a dynamic industry that can be influenced by various external factors. Therefore, making informed investment decisions requires ongoing research and consideration of the broader economic and market context. Seeking the guidance of a financial advisor and maintaining a diversified investment portfolio remain fundamental strategies for managing risk and aligning investments with individual financial goals.
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