TVS Motor Company seems to be ahead in the India EV Race

The consolidated net profit of TVS Motor Company increased by 28% to 304 crore in the third quarter ended December 2022 (Q3FY23) from 237 crore the previous year. Its revenue increased to 8,075 crore from 6,606 crore the previous year (YoY).

“TVS Motor’s 3Q EBITDA and PAT grew 16-22% YoY and were 4-7% above Jefferies estimares. We believe TVS should be a key beneficiary of Indian 2W demand recovery. TVS has turned aggressive in EVs, leading among incumbents in E2Ws with 17% market share in Jan, and is planning to launch multiple products in next 18 months. Our FY24-25E EPS is 14-15% above street. We expect TVS’ earnings to almost treble over FY22-25,” said Jefferies while retaining its Buy on the auto stock with a target price of ₹1,550. 

TVS
credit: mint

Brokerage Nirmal Bang has reiterated its belief that TVS is a front-runner among incumbent OEMs in the electric vehicle (EV) space, with aggressive plans for the EV business that include a series of new model launches over the next 12-18 months, monetization of the EV arm, and investments in technology to cover the entire spectrum of EV product portfolio.

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TVS sold 29k EV units across three different iQube variants in 3QFY23 and expects to double its volume in 4QFY23. It expects to sell more than one lakh EVs in FY23. TVS had a 14.5% market share in EVs in 3QFY23, and EVs contributed 10% to scooter volume. The company also stated that it intends to release an Electric 3W in the coming months.

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