Kotak Institutional Equities Retains ‘Add’ Rating on TVS Motor
Kotak Institutional Equities has retained its ‘Add’ rating on TVS Motor, citing multiple demand and execution levers that are expected to sustain the company’s growth momentum over the medium term. The brokerage has revised its fair value to Rs 3,950, rolling its valuation to March 2028.
Kotak expects TVS Motor to continue outperforming the broader two-wheeler industry, driven by a combination of domestic recovery, electric vehicle leadership, network expansion and strong export momentum.
Domestic Recovery to Drive Growth
The Indian two-wheeler industry has been witnessing a recovery in demand, driven by a combination of factors such as increasing rural income, easy financing options, and new product launches. TVS Motor is well-positioned to benefit from this recovery, given its strong brand presence and extensive distribution network.
In addition to domestic recovery, TVS Motor is also expected to benefit from the growing demand for electric vehicles. The company has been investing heavily in electric vehicle technology and has launched several electric two-wheeler models in the market.
Electric Vehicle Leadership
TVS Motor has been at the forefront of the electric vehicle revolution in India, with a range of electric two-wheeler models such as the iQube and the TVS Creon. The company has also been investing in electric vehicle technology, including battery technology and charging infrastructure.
The Indian government has been providing incentives for the adoption of electric vehicles, including subsidies and tax benefits. This is expected to drive growth in the electric vehicle segment, and TVS Motor is well-positioned to benefit from this trend.
Network Expansion to Drive Growth
TVS Motor has been expanding its distribution network in recent years, with a focus on increasing its presence in rural areas. The company has also been investing in digital marketing and e-commerce platforms, to increase its reach and engagement with customers.
The expansion of the distribution network is expected to drive growth for TVS Motor, by increasing its access to new markets and customers. The company has also been focusing on improving its customer service and after-sales support, to increase customer loyalty and retention.
Strong Export Momentum
TVS Motor has been witnessing strong export momentum in recent years, driven by a combination of factors such as increasing demand from emerging markets and a favorable exchange rate. The company has been exporting its two-wheeler models to several countries, including those in Africa, Latin America, and Southeast Asia.
The strong export momentum is expected to continue, driven by the increasing demand from emerging markets and the company’s focus on expanding its global presence. TVS Motor has also been investing in its export infrastructure, including its manufacturing facilities and logistics network.
Conclusion
In conclusion, Kotak Institutional Equities has retained its ‘Add’ rating on TVS Motor, citing multiple demand and execution levers that are expected to sustain the company’s growth momentum over the medium term. The company’s strong brand presence, extensive distribution network, and focus on electric vehicle technology and exports are expected to drive growth, and TVS Motor is well-positioned to continue outperforming the broader two-wheeler industry.
Indian investors and traders can stay up-to-date with the latest news and updates on TVS Motor and other Indian stocks by following Indian stock market news and stock market tips. They can also use technical analysis and fundamental analysis to make informed investment decisions.
