Nuvama raises TVS Motor share price target by Rs 200 following Q1 results
Shares of TVS Motor Company may remain in focus after Nuvama Institutional Equities raised its target price by ₹200 to ₹3,400, citing better-than-expected Q1 earnings and an improving outlook across both domestic and export markets.
In its latest update, Nuvama retained a 'Buy' rating on the stock and highlighted robust earnings growth potential led by rising market share, margin expansion, and a positive volume outlook.
Q1 performance beats estimates on profitability
For the quarter ended June 2025 (Q1FY26), TVS Motor reported a 20% year-on-year increase in revenue to ₹10,080 crore, which was broadly in line with Nuvama's expectations. However, EBITDA jumped 32% YoY to ₹1,260 crore, beating estimates, largely due to lower other expenses.
Growth momentum across markets
According to the brokerage, the two-wheeler maker is witnessing strong traction in both domestic and export markets. Nuvama believes TVS Motor is steadily gaining market share, with its domestic share likely to rise from 18% in FY25 to 19% by FY28.
The brokerage also expects margin expansion going forward, aided by better product mix, benefits from the government's PLI scheme, and internal cost savings initiatives.
Earnings forecast and valuation
Nuvama forecasts a revenue CAGR of 14% and EPS CAGR of 20% over FY25–28E, supported by scale and profitability improvements. The target price of ₹3,400 is based on 35x Sep-27E EPS, up from the earlier base of Mar-27E, and includes a valuation of ₹148/share for TVS Credit.
Ahmedabad Plane Crash
Markets Desk at BusinessUpturn.com
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