TVS Motor Company fell 5.31% to Rs 29.40 at 15:14 IST on BSE after a foreign brokerage downgraded the stock to 'underweight' from 'equalweight' and cut its price target to Rs 28 from Rs 41 earlier.
Meanwhile, the BSE Sensex was down 659.83 points, or 3.49%, to 18,226.30.
On BSE, 38,000 shares were traded in the counter compared with average volume of 77,226 shares in the past one quarter.
The stock hit a high of Rs 31.40 and a low of Rs 29.40 so far during the day. The stock hit a 52-week high of Rs 50.25 on 11 January 2013. It hit a 52-week low of Rs 28.10 on 31 July 2013.
The stock had outperformed the market over the past one month till 2 September 2013, falling 0.48% compared with the Sensex's 1.45% decline. The scrip had, however, underperformed the market in past one quarter, falling 13.63% as against Sensex's 4.42% fall.
The small-cap company has an equity capital of Rs 47.51 crore. Face value per share is Re 1.
The broker noted that TVS Motor Company could suffer from slowing volumes, rising capacity and low pricing power. It added that the Indonesian unit of TVS Motor could continue to post losses as demand growth moderates amid rising inflation and interest rates.
TVS Motor Company reported a marginal 0.57% increase in total sales to 1.55 lakh units in August 2013 over August 2012. Total two-wheeler sales fell 1.5% to 1.48 lakh units in August 2013 over August 2012. Domestic two-wheeler sales were down 6.21% at 1.27 lakh units in August 2013 over August 2012. Motorcycles sales, however, grew by 14.23% to 61,313 units. Scooters sales declined by 4.49% to 36,478 units during the period under review.
Exports grew by around 53% at 27,425 units in August 2013 over August 2012. Two-wheeler exports increased by 40% to 21,374 units in August 2013 over August 2012.
In the three-wheeler segment, the company said total sales surged by around 81% to 7,063 units in August 2013 over August 2012. TVS Motor Company disclosed its sales numbers on Sunday, 1 September 2013. The stock rose 1.80% to Rs 31.05 on Monday, 2 September 2013.
TVS Motor Company's net profit rose 1.5% to Rs 51.87 crore on 4.4% decline in net sales to Rs 1740.19 crore in Q1 June 2013 over Q1 June 2012.
TVS Motor Company is one of the leading two-wheeler manufacturer in India.
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