TVS Motor slips up to 6% from day's high post decent Q2 show: Here's what brokerages suggest

TVS Motor Company share price: TVS Motor Company shares in Thursday's session in a choppy trade swung between gains and losses after the company's September quarter earnings were announced on Wednesday after market hours. At the time of writing the copy, shares traded weak by 1.6 per cent or Rs 40.55 at Rs 2,524.6 apiece on the BSE. 

Nonetheless, in early trade it zoomed up to Rs 2,646.25, marking an over 3 per cent increase over the previous day's close.

For the September quarter, the company's standalone net profit increased 23.5 per cent year-over-year (YoY) to Rs 662.6 crore, while the revenue at the Chennai-headquartered two-wheeler manufacturer came in at a record Rs 9,228.2 crore for the review period, as against Rs 8,144.6 crore for the year-ago period, according to a regulatory filing. 

Sales at the company also grew 14.3 per cent YoY to a record 12,28,223 units in the second quarter of FY25. The sales volumes comprised internal combustion engine-powered and electric vehicles.

How global brokerages view TVS Motor post its Q2 earnings?

Global brokerage Jefferies has continued with its 'buy' call on the stock with a raised target of Rs 3,770, implying potential upside of 47 per cent from the previous close. The brokerage is upbeat on the stock as it believes TVS should be a beneficiary of 2W demand revival. The brokerage highlighted that the company's Q2 EBITDA grew 20 per cent YoY, but was 4 per cent below its estimates, also EBITDA margin rose 20 bps sequentially to 11.7 per cent. It added that the company expects domestic 2Ws to grow 7-8 per cent in 3Q with company growing faster thanthe  industry.

Meanwhile, Morgan Stanley has continued with its 'equalweight' stance on the counter and a target of Rs 2,265 per share. The brokerage underlined that the company's EBITDA was 6 per cent below its estimates due to weaker-than-expected realizations and higher employee costs. The brokerage likes the company's focus on products and technology, but F2026e P/E of 38x keeps it EW, it added.