TVS Motor Reports Strong Q4 Results, But Analysts Remain Divided On The Stock

TVS Motor’s profit was driven by strong EV and two-wheeler sales, but analyst views remain split due to valuation concerns and short-term technical weakness.

TVS Motor reported strong fourth-quarter earnings with net profit surging 76% year-on-year (YoY) to ₹852 crore, driven by robust EV sales and two-wheeler demand.

However, the stock closed over 3% lower on Tuesday, despite the strong results.

TVS Motor’s revenue rose 17% YoY to ₹9,550 crore during the quarter. 

However, brokerages shared mixed reactions. Axis Securities downgraded the stock to ‘Hold’ on the back of rich valuations, while ICICI Securities maintained a ‘Buy’ rating.

Meanwhile, Nuvama raised its target to ₹3,200, signalling nearly 20% upside.

On Stocktwits, retail sentiment turned ‘extremely bearish’ compared to ‘bullish’ a week ago, amidst significant message volumes. 

SEBI-registered advisor Finversify views TVS Motor as fundamentally strong following its Q4 results. They believe that strategic expansions in electric vehicles and favorable PLI benefits position TVS for sustained growth despite competitive challenges. 

However, from a technical perspective, Finversify notes that further correction is possible, with the stock potentially retracing to the ₹2,615 level, which coincides with a 20-day exponential daily moving average (EDMA) breakdown.

Finversify added that a breach below this level could trigger additional bearish sentiment, possibly pushing the stock down to ₹2,500.

Meanwhile, analyst Varunkumar Patel expects the stock to rise to ₹3,000, supported by its earnings.

TVS Motor stock has gained 15% year-to-date.

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