GST cuts, premiumisation and scooter launches boost TVS Motor outlook

TVS Motor's stock is expected to gain further with GST rate cuts, premiumisation, new scooter launches, and robust sales momentum in domestic and export markets

Launches, gains from the reduction in the goods and services tax (GST), and growth outperformance are expected to help support the stock prices of two-wheeler (2W) major TVS Motor Company. It has gained over 23 per cent since the start of August, compared to the peer average of 7 per cent over this period. Given the premiumisation trend, the gains could sustain going ahead.

 

The immediate gains for the stock are on account of cuts in GST rates. For 2Ws with engine capacity below 350cc, GST rates have been reduced from 28 per cent to 18 per cent. The price