Kotak Institutional Equities Sticks With TVS Motor; GST Cuts, EVs, Exports To Drive Growth
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.
Driving Factors Behind TVS Motor’s Growth
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. The company’s ability to adapt to changing market trends and its focus on innovation are key factors that will contribute to its growth.
GST Cuts: A Boost To The Two-Wheeler Industry
The recent GST cuts on two-wheelers are expected to provide a boost to the industry, making vehicles more affordable for consumers. This, in turn, is likely to drive sales and revenue growth for TVS Motor. The company’s strong product lineup and extensive distribution network will enable it to capitalize on the increased demand.
Electric Vehicles: A Key Growth Driver
The electric vehicle segment is expected to be a key growth driver for TVS Motor. The company has been investing heavily in electric vehicle technology and has launched several electric vehicle models in the market. With the government’s focus on promoting electric vehicles, TVS Motor is well-positioned to benefit from this trend.
Exports: A Key Contributor To Growth
TVS Motor‘s export business is expected to be a key contributor to its growth. The company has a strong presence in international markets and has been expanding its export network. With the Indian economy expected to grow, TVS Motor‘s export business is likely to benefit from the increased demand for two-wheelers in international markets.
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. With GST cuts, electric vehicles, and exports expected to drive growth, TVS Motor is well-positioned to outperform the broader two-wheeler industry.
