Reduce TVS Motor Company; target of Rs 3400: Choice Equity Broking

Choice Equity Broking recommended reduce rating on TVS Motor Company with a target price of Rs 3400 in its research report dated October 29, 2025.

Broker Research

October 29, 2025 / 09:03 IST

Reduce

26 Aug, 2025 12:21

Volume

Todays L/H

Choice Equity Broking's report on TVS Motor Company

In Q2FY26, TVSL registered total volume growth of 23% YoY against the industry's 11% YoY, driven by robust demand across segments. Domestic 2W ICE sales surged 21% YoY as compared to the industry's 8% YoY, while international 2W ICE volumes grew 31% YoY versus the industry's 26% YoY, achieving the highest-ever quarterly export of over 4,00,000 units. Despite magnet supply constraint, EV 2W volumes rose 7% YoY to 80,000 units, supported by iQube crossing 7,00,000 domestic units. 3W sales posted a strong 41% YoY growth, with EV 3W market share exceeding 11%. This diversified outperformance across domestic, international; ICE and EV segments underscores the company’s superior execution and competitive strength.

Outlook

We revise our FY26E/FY27E EPS estimate downwards by 0.4%/0.7% and maintain our target price of INR 3,400. We continue to value the company at an unchanged PE multiple on the average FY27/28E EPS and assign a value of INR 101 to TVS Credit. We remain positive on the long-term growth prospects of TVSL; however, considering the current valuations, we maintain our “REDUCE” rating on the stock.

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