TVS Motor share price gains over 2% on robust Q1FY24 numbers; here's what brokerages say

livemint.com:

₹1,343.95 apiece on BSE. TVS Motor share price is hovering near its 52-week high level. On Monday, TVS Motor reported an 42.2% year-on-year (YoY) rise in its consolidated net profit for the fiscal's first quarter ended June (Q1FY24) to ₹434.30 crore.

TVS Motor's consolidated total revenue from operations rose 23.8% on year to ₹9,055.51 crores during the quarter ended June from ₹7,315.70 crore in Q1FY23. TVS Motor stated in an exchange filing that it achieved its highest operating EBITDA ever of ₹764 crores for the first quarter of 2023–24, representing a 27% increase over the first quarter of 2022–23. On the technical front, as per trendlyne data, the TVS Motor stock price rose 47.6% and outperformed its sector by 16.5% in the past year.

"Yesterday, the TVS Motor stock price were under pressure after a positive start, today as well prices have started on a positive note but not holding to higher levels. It seems prices have entered a consolidation phase with yesterday volatile trading range to act as trading zone, 1380 - 1300 is the range, next directional move only beyond this range," said Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One. TVS Motor reported revenue and EBITDA growth of 20% and 27% year over year to ₹72.2 billion and ₹7.6 billion, respectively, in Q1FY24, according to the brokerage's report.

This was above expectations. The company has been outperforming the domestic market thanks to the success of its new products, a strong position in the scooter market, and growing market penetration in the executive and luxury motorcycle segments. Brokerage anticipates that this trend will continue.