Reuters Market Eye - Morgan Stanley downgrades TVS Motor to "underweight" from "equalweight" and cuts price target to 28 rupees from 41 rupees.
The investment bank says the motorcycle maker could suffer from slowing volumes, rising capacity and low pricing power.
Morgan Stanley adds the Indonesian unit of TVS Motor could continue to post losses as demand growth moderates amid rising inflation and interest rates.
TVS Motor shares are down 1.7 percent, compared with a 2.5 percent fall in the NSE index.
(Reporting by Indulal PM)