TVS Motor shares fall despite Macquarie calling It ‘best positioned’ for export recovery

TVS Motor Company shares slipped nearly 6 percent last week.

Shares of TVS Motor Company slipped over a percent to Rs 2,330 in early trade on February 19, extending losses for a sixth session in a row, even as Macquarie dished out an 'outperform' rating on the stock following an overall recovery in the export market.

The international brokerage has assigned a target price of 2,904, implying an upside potential of 24 percent from the last closing price of Rs 2,342 on the National Stock Exchange. TVS Motor Company shares slipped nearly 6 percent last week.

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TVS Motor is best positioned to capitalize on this growth, making it Macquarie’s top pick in the two-wheeler segment. This comes after Macquarie highlighted India's well-diversified two-wheeler export market, with LATAM and Africa accounting for 70 percent of export volumes in FY24. The brokerage sees strong medium-term potential, driven by rising demand, market share gains in these regions, and emerging opportunities in electric two-wheeler exports.

TVS Motor's overall two-wheeler and three-wheeler sales, including exports, grew by 10 percent to 12.12 lakh units during the quarter, up from 11.01 lakh units in the year-ago quarter. Among product segments, scooter sales surged 22 percent year-on-year to 4.93 lakh units, while motorcycle sales increased by 6 percent to 5.56 lakh units. However, three-wheeler sales declined to 0.29 lakh units from 0.38 lakh units in Q3 FY24.

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TVS Motor Company reported a steady performance for the third quarter of FY25, with its net profit rising 4.2 percent on-year to Rs 618 crore during the quarter, driven by higher sales volumes and improved operational efficiency.

The automaker's revenue from operations increased by 10 percent year-on-year to Rs 9,097 crore. This was a rise from Rs 8,245 crore reported in the same quarter of the previous year, reflecting sustained demand across its product portfolio.

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