Trending stock TVS: How the stock is expected behave tomorrow, check details here
TVS Motor's stock is likely to open higher tomorrow and could see a sharp rally in the early trade, on the back of strong Q1FY24 results. However, the gains could be capped if the valuation becomes stretched. The Market sentiment if the broader market is positive, the stock could also see a positive reaction.
The stock is likely to open higher tomorrow and could see a sharp rally in the early trade. The stock is also seen trading below its 50 DMA. The stock is currently trading at a valuation of around 15x FY24E earnings. This is slightly above the historical average valuation of the stock.
However, the company's strong growth prospects and healthy dividend payout could support the valuation. The stock has been on a strong uptrend in the last one year, rising by 50%. The YTD returns stood at 22%.
The stock is likely to continue to be a good investment for the long term. TVS Motor reported a 42.2% year-on-year (YoY) increase in consolidated net profit (attributable to the company's shareholders) for the fiscal first quarter ending June (Q1FY24) to 434.30 crore on Monday. In the previous fiscal year, the company had a profit of 305.37 crore.
The shares of TVS Motor opened at ₹1,334.05 apiece on BSE. The stock made day high of ₹1373.05 per share. TVS Motor's two-wheeler segment is expected to continue to be the growth driver in Q1FY24.
The company's exports are also expected to grow in the quarter. TVS Motor's stock is currently trading at a valuation of around 15x FY24E earnings. The stock is likely to react to the results tomorrow, but the impact will depend on the actual numbers.
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