Volume recovery, margin expansion hopes drive gains for TVS Motor

Robust export sales, higher investment in electric vehicles are positives

The TVS Motor Company stock gained over three per cent in trade on positive management commentary and strong growth expectations of brokerages over the next two years. After a subdued June quarter, demand trends in July indicate that retail sales are moving closer towards March 2021 quarter levels; volumes are expected to return to normal levels by September.

Among the triggers for the improvement in domestic demand would be positive rural sentiment on the back of normal monsoons and reservoir levels. Return of personal mobility in the urban segment too is expected to support demand. While volumes in the June