TVS Motor share climbed nearly 10 per cent today after the auto firm reported a 29.19 per cent rise in Q2 net profit. Shares of TVS Motor rose 9.73 per cent to Rs 632.85 against the previous close of Rs 576.55 on the Bombay Stock Exchange(BSE).
The stock has gained after 3 days of consecutive fall. It opened with a gain of 6.13 per cent at Rs 611.90.
TVS Motor share is trading higher than 5 day, 20 day, 50 day, 100 day, and 200 day moving averages. TVS Motor stock has gained 40.38 per cent in one year and has risen 27.95 per cent since the beginning of this year.
In a month, the auto share has climbed 15.08 per cent. Market cap of the firm rose to Rs 29,531 crore on the BSE.
Total 3.38 lakh shares changed hands amounting to turnover of Rs 21.01 crore on BSE. The large cap stock hit 52 week high of Rs 665.70 on May 27, 2021 and 52 week low of Rs 407.25 on October 28, 2020.
The auto major reported a 29.19 per cent rise in consolidated net profit at Rs 234.37 crore in Q2 against net profit of Rs 181.41 crore in the July-September period of the previous fiscal.
Revenue from operations climbed to Rs 6,483.42 for the second quarter compared to Rs 5,254.36 in the year-ago period.
For the six months ended September 30, the company posted a consolidated net profit of Rs 219.65 crore against net loss of Rs 1.38 crore in the same period of 2020-21.
Two-wheeler export sales rose 46 per cent compared to the second quarter of last year. Motorcycle sales stood at 4.39 lakh units in the second quarter, as against 3.66 lakh units earlier.
Motilal Oswal has assigned a neutral stance on the TVS Motor stock post Q2 earnings.
"Volume growth is expected to be driven by new product launches (Raider) in the domestic market as well as a ramp-up in exports. It is enjoying the benefits of economies of scale and operating leverage, resulting in EBITDA margin nearing the double-digit range," the brokerage said.
"TVSL earns 40 per cent of overall EBITDA from the domestic scooter business, making it vulnerable to an EV disruption in the listed 2W space. Valuations at 25.2 times/18.9 times FY22E/FY23E EPS largely reflect the strong earnings growth as well as increasing risk of EVs. We maintain our Neutral rating with a target price of Rs 635 per share," it added.
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