TVS Motor shares fall over 4% post Q4 results; should you buy the dip?

TVS Motor share price: While most analysts have maintained their 'Buy' ratings on TVS Motor shares, some have shared 'Neutral' and 'Reduce' ratings on valuation concerns

TVS Motor Company share price came under selling pressure today, April 29, dropping 4.4 per cent on the BSE in the intraday trade. TVS Motor share hit a low of ₹2,679 per share, hit by heavy volumes, as investors resorted to profit booking in the stock after the company announced its March 2025 quarter (Q4FY25) results.

 

At 12:45 PM, TVS Motor share price was quoting at ₹2,707.6 per share, down 3.4 per cent on the BSE, as against a 0.14-per cent rise in the benchmark BSE Sensex index. Around 0.28 million shares have changed hands on the TVS Motor counter on the BSE, so far in trade, as against a two-week average volume of 0.013 million shares.  READ STOCK MARKET LIVE UPDATES TODAY HERE

 

 

TVS Motor Company Q4 results:

Adjusting TVS Motor's Q4 results, to include PLI benefit only for the quarter, the company's standalone revenue was up 15 per cent year-on-year (Y-o-Y) to ₹9,395 crore. Ebitda (earnings before interest, tax, depreciation, and amortisation) jumped 27 per cent Y-o-Y to ₹1,177.2 crore, while Ebitda margin expanded 120 basis points Y-o-Y to 12.5 per cent.

 

TVS Motor Company's Q4 adjusted net profit, meanwhile, surged 75.5 per cent Y-o-Y to ₹852 crore.

 

TVS Motor shares: Should you buy/sell/hold? Brokerages' view:

 

ICICI Securities | Buy | Target: ₹3,150 (vs ₹2,900 earlier)

Despite electric two-wheeler sales (e2W) scaling up, ICICI Securities believes TVS Motor has the capability to deliver around 13 per cent Ebitda margin over FY26–27, compounded at annual growth rate (CAGR) of 9 per cent in overall volume in FY25–27. PLI benefits, the brokerage added, should also support margins in the coming quarters. It, thus, maintained 'Buy' with a higher share price target, implying 35x FY27E standalone EPS.

 

Change in TVS Motor share price target, it added, is led by ~20bps/60bps higher Ebitda margin estimates in FY26/27.  ALSO READ | M&M-SML Isuzu deal strategically positive; execution remains key: Analysts

 

JM Financial Services | Buy | Target: ₹3,150 (vs ₹2,650 earlier)

The Management expects reduction in repo rate, improvement in retail financing and income tax rebate to support consumer sentiments going forward. Rural demand is also expected to pickup, led by a normal monsoon. While domestic 2W industry growth is expected to moderate in Q1FY26, full-year FY26 growth is likely to be similar to FY25, the management said. Backed by its strong brand portfolio, the management expects TVS Motor to outperform the industry in FY26.

 

Nuvama Institutional Equities | Buy | Target: ₹3,200 (vs ₹3,100 earlier)

TVS Motors' e2W market share stood at 20 per cent in FY25, higher than its ICE market share, instilling confidence that TVS Motor is better placed for EV transition than peers. Going forward, the company is targeting EV launches across multiple segments and use cases in 2Ws and 3Ws, which augurs well for the company. It has also collaborated with BMW for premium models and has been investing in e-mobility firms such as Ultraviolette.

 

Motilal Oswal Financial Services | Neutral | Target: ₹2,720 (unchanged)

For the first time in many years, TVS Motor Company underperformed the industry in the motorcycles segment in FY25. Notably, it has underperformed the segment in the 125cc vertical, which has been a key growth driver for the company in recent years. Further, the demand outlook in domestic markets has remained weak following the festive season, while the exports outlook also continues to be uncertain.

 

Given these factors, the brokerage believes TVS Motor stock is fairly valued at 42x/35.8x FY26E/FY27E EPS.  ALSO READ | Tata Tech shares drop 6% after block deal; Here's the likely seller

 

Kotak Institutional Equities | Reduce | Target: ₹2,400 (vs ₹2,250 earlier)

The brokerage said TVS Motors' medium-term growth prospects remain strong led by strong growth in EV 2W volumes due to new launches and network expansion; steady demand trends in the ICE 2W and 3W segments; and recovery in export volumes. However, valuation remains expensive at 41X FY2026E standalone EPS, it said.