TVS Motor Shares At Record High After Q4 Profit Beat

Shares of TVS Motor Co. hit a record high on Friday after its fourth-quarter profit beat analysts' estimates.

The company's net profit rose 49% year-on-year to Rs 410.3 crore in the quarter ended March, according to its exchange filing. That compares with the Rs 360 crore consensus estimate of analysts tracked by Bloomberg.

In the quarter ended March, the company's overall sales rose 1.4% year-on-year to 8.56 lakh units. Two-wheeler sales inched up 3% to 8.15 lakh units, while sales in the three-wheeler segment fell 30% to 41,774 units.

Strong growth in the domestic market was offset by weak exports due to worsening demand in overseas markets. Domestic volumes rose 26%, while exports crashed 41%.

TVS Motor Co., Q4 FY23 (YoY)

• Revenue grew 19% to Rs 6,605 crore. (Bloomberg estimate: Rs 6,612 crore).

• Ebitda rose 22% to Rs 680 crore. (Bloomberg estimate: Rs 671.3 crore).

• Operating margin stood at 10.3% versus 10.1% last year, and an estimate of 10.2%.

Shares of TVS Motor rose 2.99% to Rs 1,203.95 apiece, compared to a 0.33% decline in the benchmark NSE Nifty 50 as of 10:06 a.m. The stock rose as much as 5.64% intraday, the most in 14 weeks since Jan. 25.

The total traded volume so far in the day stood at 12.8 times its 30-day average. The relative strength index was 69.3.

Out of the 46 analysts tracking the company, 31 maintain a 'buy' rating, 11 recommend a 'hold' and four suggest a 'sell' on the stock, as per Bloomberg data. The average 12-month consensus price target implies a potential upside of 4.5%.