TVS Motor Company’s Shares Hit 52-Week High on Vietnam Market Entry

TVS Motor Company's Shares Hit 52-Week High on Vietnam Market Entry

VoM News Desk | November 23, 2023 | 02:45 PM IST | Breaking News | Follow on Google News

TVS Motor Company’s Shares Hit 52-Week High on Vietnam Market Entry

TVS Motor Company’s Shares Hit 52-Week High on Vietnam Market Entry

TVS Motor Company Ltd’s share price climbed 2.63% to reach a 52-week high of 1784 on the BSE during Thursday morning trades. This increase follows the company’s announcement of its expansion into Vietnam in partnership with Minh Long Motors, marking another significant stride in its global growth strategy.

Global Expansion Fuels Growth Prospects

TVS Motor’s foray into Vietnam, where it plans to offer a range of scooters and underbone motorcycles, comes just a week after announcing its entry into Europe, starting with France. This expansion is not just a testament to TVS Motor’s global ambitions but also bolsters its growth outlook, especially in the exports segment.

Impressive Export Performance and Market Share Gains

According to Jefferies India Pvt Ltd data, TVS Motors has seen a substantial increase in its market share in two-wheeler exports, from 17% to 26% over FY18 to 1HFY24, and in three-wheeler exports, from 22% to 44%. The company’s recent forays into new markets are expected to further strengthen its export performance.

Resilience Amid Industry Challenges

Despite industry-wide challenges due to geopolitical issues and rising interest rates, TVS Motor Company’s export volumes are showing signs of improvement. The company recorded two-wheeler exports of 2.39 Lakh units in the quarter ending September 2023, nearly maintaining the levels seen in the same period in 2022.

Strong Domestic Growth and Market Share Expansion

TVS Motor is also witnessing robust growth in the domestic market. Its motorcycle sales grew by 3% in the September quarter, and scooter sales saw a 10% increase. The company has been making significant market share gains in motorcycles, scooters, and electric vehicles. Notably, TVS has risen to the #2 position in the electric two-wheeler segment with a 24% market share.

EV Segment and New Launches

The launch of the premium electric scooter ‘X’ in August and plans to expand its two-wheeler and three-wheeler EV portfolio underscore TVS Motor’s commitment to sustainable mobility. The company is also focusing on expanding its network both in India and internationally.

Analysts’ Positive Outlook

Jefferies India Ltd forecasts a strong 35% Earnings per Share (EPS) Compound Annual Growth Rate (CAGR) over FY23-26, with estimates for FY24-25 being 5-10% above the street. Analysts believe that TVS’s premium valuations are justified given its strong growth outlook and improving franchise. Prabhudas Lilladher also echoed a positive sentiment, highlighting TVS’s strengths in new product launches, export focus, and margin improvements.

VoM News Desk

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