Goal: ₹2,800
CMP: ₹2,292.45
In a current interview, Sudarshan Venu, MD, TVS Motor highlighted that: The 2W business demand is recovering strongly within the preliminary 3 weeks of Jan-25, with a resumption in authorities capex which units a optimistic tone for CY25/FY26; 2W business is projected to develop in double-digits in FY25, with TVSL aiming for outperformance pushed by continued product actions throughout ‘development’ classes like premium bikes (premium off-road motorbike to be launched throughout CY25) and scooters (the lately launched Jupiter 110 has been acquired nicely);
Key export markets like Africa are actually rebounding and are on a optimistic trajectory; TVSL will proceed to introduce new merchandise in E-2Ws in addition to in E-3Ws; Battery costs are declining and anticipated to fall additional over the subsequent decade amid ongoing improvements by OEMs. This, together with different improvements/value discount measures, and scale ought to enhance EV profitability.
We additionally notice that TVSL has now attained management in E-2Ws (25 per cent market share) after surpassing Ola and Bajaj Auto in Jan-25. We imagine that amid an evolving E-2W business panorama, TVSL stays an outperformer in general 2Ws, pushed by sturdy product actions (in ICE and EV) and sustained margin enchancment, supported by the continued export restoration in key markets like Africa.
After the current 23 per cent correction from the height, TVSL trades at 25x Dec-26E core PER.
