TVS Motor jumps after foreign brokerage initiates coverage

TVS Motor Company rose 6.20% to Rs 246.70 at 15:10 IST on BSE after a foreign brokerage resumed coverage on the stock with a 'Buy' rating and added it to conviction list.

Meanwhile, the BSE Sensex was up 6.75 points, or 0.02%, to 28,450.76.

On BSE, so far 7.35 lakh shares were traded in the counter, compared with an average volume of 5.14 lakh shares in the past one quarter.

The stock hit a high of Rs 249.75 and a low of Rs 235 so far during the day. The stock hit a record high of Rs 266.55 on 3 November 2014. The stock hit a 52-week low of Rs 52.05 on 11 December 2013.

The stock had underperformed the market over the past one month till 2 December 2014, falling 10.52% compared with 2.07% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 15.40% as against Sensex's 5.27% rise.

The large-cap company has an equity capital of Rs 47.51 crore. Face value per share is Re 1.

The brokerage said TVS Motor Company could benefit from strong scooter segment growth, motorcycle launches and margin expansion.

Key risks, according to the brokerage are failure of launches, lower-than-expected 2-wheeler demand due to unfavorable macro, intensifying competition, increase in commodity prices hurting margins, and sustained losses in Indonesia subsidiary.

TVS Motor Company said its total sales rose 36% to 2.20 lakh units in November 2014 over November 2013. Total two wheeler sales rose 36% to 2.10 lakh units in November 2014 over November 2013. Domestic two wheeler sales rose 33% to 1.79 lakh units in November 2014 over November 2013. Scooters sales jumped 62% to 62,223 units in November 2014 over November 2013. Motorcycles sales rose 41% to 86,424 units in November 2014 over November 2013. Three-wheeler sales rose 44% to 9,067 units in November 2014.

Total exports rose 55% to 39,215 units in November 2014 over November 2013. Two wheeler exports rose 55% to 31,526 units in November 2014 over November 2013.

TVS Motor Company's net profit rose 6.7% to Rs 94.81 crore on 34.3% growth in net sales to Rs 2635.46 crore in Q2 September 2014 over Q2 September 2013.

TVS Motor Company is one of the leading two-wheeler manufacturers in India. With presence in more than 60 countries across the globe, TVS Motor Company is the second largest exporter of two wheelers and three wheelers from India. The company has grown to be a strong brand name in Asia, Latin America and Africa with popular products in the two and three wheeler segments.

Powered by Capital Market - Live News