TVS Motor share price rises 5%, jumps 10% in 2 sessions after Q1 results; is it a stock to buy?

Extending gains for the second consecutive session, TVS Motor Company's share price rose almost 5% in morning trade on the BSE on Wednesday, 22 July, buoyed by its strong April-June quarter (Q1FY27) results.

TVS Motor shares opened at ₹3,845.05 against their previous close of ₹3,791.60 and climbed 4.6% to an intraday high of ₹3,965, inching closer to its 52-week high of ₹3,970, scaled on 26 February this year.

In the previous session, the stock jumped 5.6% on the BSE after it reported its June quarter results.

During market hours on Tuesday, 21 July, TVS Motor reported a 67.1% year-on-year (YoY) and 32.1% quarter-on-quarter (QoQ) jump in its consolidated profit to ₹1,019.43 crore for Q1FY27.

Revenue from operations for Q1FY27 jumped 33.5% YoY and 8.3% QoQ to ₹16,295.52 crore.

The company posted its highest EBITDA of ₹1,779 crore, up 41.2% YoY, while EBITDA margin improved by 30 basis points to 12.8% from 12.5% in the same quarter last year.

TVS Motor said it registered the highest-ever quarterly sales during Q1FY27.

Experts and brokerage firms appear largely positive about the stock for the long term, citing the company's strong quarterly performance despite a tough macro environment.

Brokerage firm Motilal Oswal Financial Services has maintained a buy call on the stock with a target price of ₹4,470, while raising its EPS estimates by 8% and 5% over FY27-28.

The brokerage firm expects TVS to record a revenue, EBITDA, and PAT CAGR of 20%, 23%, and 24%, respectively, over FY26-28E.

"TVS’s consistent market share gains across key domestic and export segments, along with a gradual improvement in margins, have driven healthy returns over the years. We expect this outperformance to continue, given its healthy new launch pipeline, which in turn is likely to help sustain its premium valuations," said Motilal Oswal.

Brokerage firm JM Financial has maintained a buy call on the stock and raised FY27E and FY28E EPS estimates by 4.5% and 4%, respectively, while maintaining 37 times FY28E valuation, resulting in a revised target price of ₹4,400 from ₹4,220 earlier.

"We factor in nearly 12.7% domestic two-wheeler volume growth for TVS in FY27E, supported by market share gains and a strong product portfolio. We build in nearly 17% YoY export volume growth for FY27E. TVS is expanding capacity across ICE, EV and exports, supporting future growth," said JM Financial.

(This is a developing story. Please check back for fresh updates.)

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