Shares of TVS Motor Company Ltd settled at Rs 2417.70 on Wednesday, falling more than a per cent for the day, with a market capitalization close to Rs 1.15 lakh crore. The two-wheeler maker announced an interim dividend earlier this week, and shares will trade ex-dividend today. Eligible shareholders will receive the dividend payment within 30 days of the declaration made on March 13, 2025.
The board of directors declared an interim dividend of Rs 10 per share (1,000 per cent) on 47,50,87,114 equity shares of Re 1 each — absorbing a total sum of Rs 475 crore for the financial year ending March 31, 2025. Shareholders whose names appear in the Register of Members and/or depositories by the close of working hours on March 26, 2025 — the designated record date — will qualify for the dividend.
On the trading front, shares of TVS Motor fell by 1.07% on Wednesday, with a closing price of Rs 2417.70. The company’s total market capitalization rests close to Rs 1.15 lakh crore, with the stock having declined over 18% from its 52-week high of Rs 2,958.15 reached back in September 2024.
Despite this recent decline, TVS shares have surged nearly 1,000% from levels around Rs 250 in March 2020, and have risen over 300% in the last few years. Even with a 16% drop over the past six months, the stock has still managed to yield an 18% gain in the last year.
Broader market analyses from Elara Capital suggest that TVS Motor stands out as a preferred player within its sector, forecasting a revenue compound annual growth rate (CAGR) of 14.4% alongside an EBITDA CAGR of 23.2% and an EPS CAGR of 28.4% for FY24-27. The firm highlighted potential margin expansions of 270 basis points during this period. “Based on our back-of-the-envelope calculations, we believe TVSL’s ICE EBITDA margins are already closer to 13%, which is a key positive for blended margins going forward. We value TVSL at 31 times the 2027 EPS and assign Rs 98 to TVS Credit Services,” Elara Capital stated, revising their rating for TVS Motor to ‘buy’ with an unchanged target price of Rs 2,979.
In a strategic move, TVS Motor (Singapore) Pte, a subsidiary, has agreed to acquire an additional 8.26% of the share capital of The GO Corporation (GOAG), Switzerland, for CHF 500,000. This acquisition will increase TVS Motor’s stake in GOAG to 100%, transforming it into a wholly-owned subsidiary.
Axis Securities provided an optimistic outlook as well for TVS Motor, anticipating a revenue, EBITDA, and PAT growth of 15%, 18%, and 24% CAGR respectively over FY24E-27E. It places the target price at Rs 2,650 alongside a ‘buy’ rating.
On a global scale, TVS Motor’s HLX range has crossed over 4 million in sales since its launch in 2013 in Africa, becoming a significant player in the easy mobility solution segment across 57 countries in Latin America, Africa, and the Middle East. “The TVS HLX series has been instrumental in transforming millions of lives, and it stands as a beacon in the mobility solution sector,” a company spokesperson remarked.
Brokerage firms such as Nuvama Institutional Equities, FundsIndia, and Emkay Global Financial Services also issued ‘buy’ ratings with target prices of Rs 3,100, Rs 3,074, and Rs 2,800 respectively, projecting sustained potential in the company’s stock. Meanwhile, Geojit Financial Services and Prabhudas Lilladher maintained a ‘hold’ rating with target prices at Rs 2,800 and Rs 2,461 respectively.
As TVS continues to navigate market challenges, including increasing competitive intensity and dollar appreciation affecting exports, their strong engineering and research capabilities, alongside a robust domestic retail network, may serve as key factors in maintaining growth momentum.
