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Does TVS Motor have a 57% upside? Jefferies thinks so

The brokerage points to company-specific positives, and support from sectoral tailwinds

January 25, 2023 / 12:36 PM IST
Jefferies sees TVS Motors’ earnings almost triple over FY22-25 and finds the valuation—21x/17x FY24E/FY25E—attractive.

Jefferies sees TVS Motors’ earnings almost triple over FY22-25 and finds the valuation—21x/17x FY24E/FY25E—attractive.

After TVS Motor’s third quarter results, analysts at Jefferies have stated that they see a 57 percent upside to the stock.

They cited improving profitability profile, buoyancy in the auto category, better product portfolio and the auto major’s increasing market share in the electric-vehicle segment as reasons.

They see TVS Motors’ earnings almost triple over FY22-25 and find the valuation — 21x/17x FY24/FY25 — attractive, given that the last 10-year average is 25x FY24. The brokerage has set a target price of Rs 1,550 based on 30x September 2024, in a January 24 report.

Also read: TVS Motor's Q3 results: net profit jumps 22.5% YoY