TVS Motor enters ₹1 lakh crore market cap club as shares hit fresh record high

Marking a significant milestone, TVS Motor, one of the country's leading two-wheeler makers, surpassed the ₹one lakh crore market capitalisation in today's trade as its shares hit a new peak of ₹2,108.95 apiece. Over the past year, the company's market capitalisation has surged by ₹53,000 crore.

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The company's shares have been performing exceptionally well on Dalal Street. They began their upward trend in April last year and continued through all months until December, marking a consistent positive trend. During this period, the shares have soared from ₹1,077 apiece to ₹2,025 apiece, reflecting an impressive gain of 88%.

Looking at the long-term performance, the shares have gained 210% in the last two-year period and soared 292% in the last three-year period. This outstanding performance becomes even more striking when looking back to April 2020, when the stock was valued at ₹240 per share. Since then, the shares have delivered an astounding return of 747%.

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Accelerating at full throttle

The company experienced a surge in sales during December, reflecting the ongoing recovery in the rural economy. The monthly sales figures for December 2023 reached an impressive 301,898 units, marking a 25% growth compared to the 242,012 units recorded in December 2022.

The overall two-wheeler segment exhibited robust growth, with a 27% increase, as sales escalated from 227,666 units in December 2022 to 290,064 units in December 2023. The domestic two-wheeler market registered a 33% increase, with sales climbing from 161,369 units in December 2022 to 214,988 units in December 2023.

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Furthermore, the company successfully sold 11,232 units of Electric Vehicles in December 2023, surpassing the sales of 11,071 units in December 2022.

On the global front, the company's total exports displayed 8% growth, reaching 85,391 units in December 2023, compared to 79,402 units in the same period last year. Two-wheeler exports registered a growth of 13%, with sales increasing from 66,297 units registered in December 2022 to 75,076 units in December 2023.

Looking at Q3 FY24, the company posted a robust growth of 27% YoY in two-wheeler sales, totaling 10.6 lakh units. Two-wheeler sales include EV sales of 0.48 lakh units in the third quarter of FY 23–24, as against 0.29 lakh units in the third quarter of FY 22–23, with a growth of 65.51%.

Q3FY24 earnings estimates

In its latest automobiles Q3 FY24 earnings preview report, domestic brokerage firm Motilal Oswal expects the company to report a net profit of ₹547 crore. This projection reflects a significant uptick of 55% year-on-year (YoY) and a modest 2% quarter-on-quarter (QoQ) increase.

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The brokerage also projects a YoY growth of 26.2% in the company's net sales, reaching ₹8,261.8 crore, and a QoQ increase of 1.4%. Furthermore, the brokerage anticipates the company's EBITDA to deliver a 43.6% YoY and 5.2% QoQ growth, reaching ₹946.4 crore.

However, at 01:00 pm, the stock was trading with a 2.87% drop at ₹2,026 apiece. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.