Goal: ₹2,800
CMP: ₹2,292.45
In a latest interview, Sudarshan Venu, MD, TVS Motor highlighted that: The 2W trade demand is recovering strongly within the preliminary 3 weeks of Jan-25, with a resumption in authorities capex which units a constructive tone for CY25/FY26; 2W trade is projected to develop in double-digits in FY25, with TVSL aiming for outperformance pushed by continued product actions throughout ‘progress’ classes like premium bikes (premium off-road motorbike to be launched throughout CY25) and scooters (the lately launched Jupiter 110 has been obtained nicely);
Key export markets like Africa at the moment are rebounding and are on a constructive trajectory; TVSL will proceed to introduce new merchandise in E-2Ws in addition to in E-3Ws; Battery costs are declining and anticipated to fall additional over the following decade amid ongoing improvements by OEMs. This, together with different improvements/value discount measures, and scale ought to enhance EV profitability.
We additionally be aware that TVSL has now attained management in E-2Ws (25 per cent market share) after surpassing Ola and Bajaj Auto in Jan-25. We consider that amid an evolving E-2W trade panorama, TVSL stays an outperformer in total 2Ws, pushed by robust product actions (in ICE and EV) and sustained margin enchancment, supported by the continuing export restoration in key markets like Africa.
After the latest 23 per cent correction from the height, TVSL trades at 25x Dec-26E core PER.
