Shares of multibagger TVS Motor Company stock hit their record high on Friday after global brokerage UBS raised its price target. The upgrade comes a day after the launch of new TVS Jupiter 110 cc scooter. The fresh price target for the stock is Rs 3,200, an 18% upside from the previous close. The previous price target was Rs 3,000 per share.
TVS Motor shares climbed 4.14% to a fresh high of Rs 2818 against the previous close of Rs 2705.95 on BSE. Market cap of the firm climbed to Rs 1.33 lakh crore.
The auto stock delivered multibagger returns of 106% in a year and gained 193% in two years. The stock has climbed 458% in three years.
Total 0.52 lakh shares of the firm changed hands amounting to a turnover of Rs 14.65 crore. In terms of technicals, the relative strength index (RSI) of the stock stands at 68.9, signaling neither the stock is overbought nor oversold. The TVS Motor stock has a one-year beta of 0.7, indicating very low volatility during the period.
UBS gave a thumbs up to the newly launched Jupiter scooter and said it was a significant upgrade over its predecessor and rivals, while maintaining a similar price point. “This launch is expected to add an estimated 15,000–20,000 units to TVS Motor's sales volume, which could represent around 7% of the company’s two-wheeler sales and about 5% of its overall sales volume,” said TVS Motor.
Another global brokerage Jefferies has a "buy" rating on the stock. It has a price target of Rs 3,000. Jefferies expects TVS’ earnings per share (EPS) to more than double over the next three years. TVS’ "premium multiples will be sustained by its strong growth outlook, especially as rural demand for motorcycles recovers, the brokerage said.
TVS Motor on August 22 rolled out its all-new Jupiter 110 at a starting price of Rs 73,700 (ex-showroom, Delhi). The fresh launch will replace its decade old outgoing version. The scooter will be available in four variants – Drum, Drum Alloy, Drum SXC and Dis.
The two and three wheeler maker reported a profit of Rs 577 crore in the June 2024 quarter. Revenue climbed 16% to rs 8376 crore in the last quarter.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) in Q1 rose 21.7% to Rs 960.1 crore from the year-ago period.