Competitive pressures, weak two-wheeler demand weigh on TVS Motor

Brokerages had turned cautious on the stock which led to recent correction

From its highs a couple of trading sessions ago, the stock of two-wheeler major TVS Motor Company is down 13 per cent. Despite positives such as the extension of its agreement with BMW announced recently, the stock has been unable to arrest the losses. In addition to competitive intensity in the electric vehicle (EV) space, weak two wheeler demand and expensive valuations have prompted some brokerages to maintain a sell rating.

The near term trigger for the stock is the agreement with BMW Motorrad, the two wheeler arm of BMW, to jointly develop new platforms and future technologies. The two