UBS has maintained its Buy call on TVS Motor Company and raised the target price to Rs 3,200 from Rs 3,000 following the launch of all-new Jupiter 110 scooter.
On August 22, TVS Motor launched the next-generation scooter - Jupiter - starting at Rs 73,700 (ex-showroom, Delhi). The model will replace Jupiter 110, which had been in the market for over a decade.
Shares of TVS Motor ended nearly 3 percent higher on August 22 at Rs 2,706 following the launch, with the stock hitting a 52-week high of Rs 2,715 per share. TVS Motor shares have gained over 27 percent in the past six months, outperforming the Nifty 50 index which gained 11 percent during the same period.
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UBS said the newly launched Jupiter scooter is a significant upgrade over its predecessor and competitors while being at a similar price point. The launch is expected to potentially add an additional 15,000-20,000 units in sales volume. UBS estimates this increase could represent approximately 7 percent of TVS's two-wheeler volumes and about 5 percent of total volumes.
UBS sees more catalysts for TVS Motor with the expected launch of a new electric two-wheeler (e-2W) and a foray into the electric three-wheeler (e-3W) market in the coming months.
The upgraded Jupiter 110 is equipped with a 113.5cc single-cylinder engine that delivers about 8 bhp of power and 9.2 Nm of peak torque. The engine also features the new iGO Assist technology, designed to provide extra torque for overtaking in city traffic.
Also Read | TVS Motor banks on rural markets to drive scooter sales
The new Jupiter 110 comes with an LED display that provides a wealth of information, along with Bluetooth connectivity that allows users to access ride data on their smartphones. The scooter offers features like a front storage compartment, under-seat storage that can hold two basic full-face helmets, and an external fuel-filling cap for added convenience. It is available in six colour options and comes in four variants: Drum, Drum Alloy, Drum SXC, and Disc SXC. The lower-end variants do not include the LED instrument cluster, USB charging port, or front disc brake, and also lack the new LED DRL feature found in higher-end models.
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