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.
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 navigate the challenges in the two-wheeler industry, including regulatory changes and competition, has been impressive.
Domestic Recovery: A Key Driver Of Growth
The domestic two-wheeler industry has been witnessing a recovery, driven by factors such as improving rural sentiment, increasing demand for personal mobility and a low base effect. TVS Motor is well-positioned to benefit from this recovery, given its strong brand presence, extensive distribution network and a wide range of products that cater to different segments of the market.
For instance, TVS Motor’s TVS Apache series has been a huge success in the Indian market, and the company has been consistently launching new variants to keep the product fresh and exciting. The company’s focus on rural marketing has also helped it to tap into the growing demand from rural areas.
Electric Vehicle Leadership: A Key Differentiator
TVS Motor has been at the forefront of the electric vehicle (EV) revolution in India, with a range of EV products that cater to different segments of the market. The company’s iQube electric scooter has been a huge success, and the company has been consistently launching new variants to keep the product fresh and exciting.
The Indian government’s focus on electric vehicle policy has also been a key driver of growth for TVS Motor. The company has been investing heavily in EV technology, and its products have been well-received by customers.
Network Expansion: A Key Focus Area
TVS Motor has been focusing on expanding its distribution network, with a emphasis on increasing its presence in rural areas. The company has been consistently launching new dealerships and service centers, and its network now spans across the country.
The company’s focus on digital marketing has also helped it to reach out to a wider audience, and its online sales platform has been a huge success. The company’s ability to provide a seamless customer experience, both online and offline, has been a key differentiator.
Strong Export Momentum: A Key Driver Of Growth
TVS Motor has been witnessing strong export momentum, driven by factors such as a weak rupee, improving demand from international markets and a favorable regulatory environment. The company has been consistently launching new products in international markets, and its exports have been growing at a rapid pace.
The company’s focus on export strategy has been a key driver of growth, and its products have been well-received by customers in international markets. The company’s ability to navigate the challenges in international markets, including competition and regulatory changes, has been impressive.
Conclusion
In conclusion, Kotak Institutional Equities’ decision to retain its ‘Add’ rating on TVS Motor is a testament to the company’s strong fundamentals and growth prospects. The company’s ability to navigate the challenges in the two-wheeler industry, including regulatory changes and competition, has been impressive.
TVS Motor’s focus on domestic recovery, electric vehicle leadership, network expansion and strong export momentum is expected to drive growth over the medium term. The company’s ability to provide a seamless customer experience, both online and offline, has been a key differentiator.
Indian investors and traders can consider buying TVS Motor shares for the long term, given the company’s strong growth prospects and competitive advantage. However, it is essential to do your own research and consult with a financial advisor before making any investment decisions.
